New Zealand’s S&P/NZX 50 index fell for a third week with gains on Friday too little, too late for exporter Fisher & Paykel Healthcare, which was knocked around by the too-ing and fro-ing on US tariffs.
The NZX50 rose 57.6 points, or 0.5% to 12,90.19 on Friday, stemming the weekly decline to 0.7%. Turnover was $130.9 million across the main board.
F&P Healthcare rose 1.6% to $35.15 on Friday, clawing back losses earlier in the week when US President Donald Trump threatened to slap tariffs on Mexico and Canada, before cutting a deal over border controls to delay the potential impost for a month.
The country’s biggest-listed company ended the week down 6.5%, its worst week in almost two years.
The kiwi dollar was heading for a 1.7% weekly gain, trading at 56.82 US cents at 5pm in Auckland from 56.75 cents at 7am and 56.74 cents yesterday, during the Waitangi Day public holiday.
Westpac chief economist Luci Ellis said the imposition of tariffs was always going to happen, but that the targeting of Mexico and Canada was surprising.
“As is usually the case, policy uncertainty produces a ‘risk off’ tone in markets, resulting in a sell-off in the Australian dollar and other currencies, as investors pile into US dollar-denominated assets,” Ellis said in a note. “And of course much of this reversed when the measures against Canada and Mexico were subsequently delayed.”
Stocks across Asia were mixed as investors eye up US jobs data on Friday in Washington and a rate review from the Reserve Bank of India. Australia’s S&P/ASX 200 index dipped 0.1% in late trading, while Japan’s Nikkei 225 index fell 0.5%, Hong Kong’s Hang Seng advanced 1.5% and India’s Nifty 50 was largely unchanged.
The art of the deal
Takeover talk dominated trading on the local market as ikeGPS surged 32% to 82 cents after saying it rejected overtures from a private equity firm at a $1 per share. The utility pole analysis firm said the non-binding offer didn’t have a realistic chance of winning over enough shareholder support to secure the 75% needed for a scheme of arrangement.
Meanwhile, Fletcher Building climbed 3.2% to $2.95 amid speculation private equity firms are looking at the building materials firm’s Australian business as the group undergoes a strategic review after a BusinessDesk report.
And Manawa Energy dropped 8.4% to $5.21 as the local market reacted to the Commerce Commission’s concerns about a potential tie-up between the generator and Contact Energy. The antitrust regulator issued its statement late Wednesday, with the NZX closed for the Waitangi Day public holiday. Contact, meanwhile, increased 0.2% to $9.31.
Forsyth Barr analysts Andrew Harvey-Green and Hugh Lockwood said regulator’s statement of issues prompted them to lower their prediction for the Contact-Manawa deal to proceed to a 50% chance from 70% previously.
Other power companies were mixed as Meridian Energy rose 1% to $5.905, while Genesis Energy decreased 0.2% to $2.28 and Mercury NZ fell 0.8% to $6.35.
ANZ Group Holdings led the benchmark index higher, up 3.3% at $34.41, while Westpac Banking Corp gained 2% to $37.75.
Mainfreight increased 0.3% to $70.73 and Move Logistics was unchanged at 22 cents after AP Moller-Maersk returned to profit in the December quarter, with higher shipping rates flowing through to earnings due to the Red Sea trade disruption. Port of Tauranga gained 1.6% to $6.53.
Jungle fever
Tech companies were broadly weaker after Amazon reported weaker-than-expected sales, while spending a record among on capital investment underpinning artificial intelligence infrastructure. Vista Group International fell 1.5% to $3.34, Gentrack edged down 0.1% to $13.29 and Eroad declined 1.9% to $1.04, while Serko rose 0.3% to $3.52.
Datacentre investor Infratil gained 2.4% to $11.17, while high-tech components maker Rakon increased 1.7% to 67 cents.
Air New Zealand slipped 1.6% to 62.5 cents after Macquarie analysts raised their price target on the airline 1 cent to 80 cents and kept their outperform rating, predicting the national carrier will deliver earnings towards the upper end of its first-half outlook. Auckland International Airport slid 0.5% to $8.71.
Milk processors were stronger after US confectionary maker Hershey boosted beat earnings expectations, while warning on rising cocoa prices. Fonterra Shareholders’ Fund units rose 0.6% to $4.95 while Synlait Milk advanced 1.7% to 59 cents.
Meanwhile, The a2 Milk Co fell 1.4% to $6.50 with French beauty giant L’Oreal and liquor group Pernod Ricard contending with tough trading conditions in China, a key market for the New Zealand dairy firm.
SkyCity Entertainment Group rose 2.1% to $1.43 after saying it expects to open its international convention centre in February next year, with delays from its contractor Fletcher pushing out the planned opening.
Fletcher reiterated its expectation to hand over the centre to SkyCity by the end of June.
Channel Infrastructure declined 0.5% to $1.94 after saying it will recognise a $270 million increase in carrying value of its import terminal in Marsden Point, taking it to $1.1 billion, and a $105 million uplift in land values to $120 million, when it reports its annual result.
Reporting by Paul McBeth. Image from Greg Bulla on Unsplash.