New Zealand shares drifted off in a stronger session for Asia, with local investors largely sitting on the sidelines as sentiment turns swiftly on the latest announcement from the US on its tariff programme.
The S&P/NZX 50 index decreased 96.2 points, or 0.8%, to 12,011.34, with turnover a modest $108.1 million.
Markets were generally stronger across Asia as Australia’s S&P/ASX 200 index rose 0.2% in late trading and Japan’s Nikkei 225 advanced 1%, while China’s Shanghai Composite declined 0.1% and Hong Kong’s Hang Seng gained 0.2%.
Wall Street rallied overnight as investors digested the latest tariff talk from US President Donald Trump, with potential carve-outs for some automakers and specific regimes for semiconductors and pharmaceuticals, although S&P 500 futures are pointing to a softer session ahead.
“There’s material uncertainty about what’s going to happen on Trump and tariffs,” said Jeremy Sullivan, an investment adviser at Hamilton Hindin Greene. “He seems to be making it up as he goes, so the prudent thing is to do nothing, and a lot of investors have taken a wait-and-see approach.”
Utilities and industrial companies were among the biggest weights on the benchmark index, with electricity generator-retailer Meridian Energy falling 1.3% to $5.87, Auckland International Airport declining 1% to $8.01 and Infratil slipping 1.9% to $10.01.
Port of Tauranga decreased 2.8% to $6.15 after the port operator said it’s lodged its fast-track consent application to extend its container berth and Mount Maunganui wharves.
Tech woes
Tech companies were broadly weaker, with Vista Group International falling 2.9% to $3.36, Serko declining 1.9% to $3.15 and Gentrack slipping 0.8% to $10.60, while high-tech components maker Rakon slumped 8.2% to 45 cents.
Eroad decreased 1.1% to 87 cents after saying the bulk of its US revenue – which accounts for 44% of its income – won’t be affected by the tariff regime, and that management is investigating ways to improve its supply chain.
Warehouse Group led the NZX50 lower, falling 3.7% to 79 cents, with retail spending data yesterday showing a decline in household consumption. KMD Brands slipped 2.9% to 33 cents, and Hallenstein Glasson Holdings dipped 0.4% to $7.44.
Investore Property, which is a landlord to big-box retailers, rose 1% to $1.04, while Kiwi Property Group, which owns the Sylvia Park retail site in Auckland, increased 0.6% to 85.5 cents.
Vulcan Steel posted the biggest gain on the NZX50, up 2.1% at $7.90.
Exporter Fisher & Paykel Healthcare decreased 0.7% to $33.35 as the kiwi dollar extended its gains, rising to 59.23 US cents at 5pm in Auckland from 58.86 cents at 7am and 58.55 cents yesterday. Global logistics firm Mainfreight fell 1.1% to $57.79.
Spark New Zealand was the most heavily traded stock on a volume of 2.8 million, declining 1.2% to $2.045.
NZME slipped 2.7% to $1.07 after former investment banker David Gibson departed the media group’s board, effective immediately. The company is facing a boardroom ouster from shareholder Jim Grenon.
Sky Network Television declined 2% to $2.41 after completing the switchover to a new satellite.
Reporting by Paul McBeth. Image from bruce mars on Unsplash.
