Fisher & Paykel Healthcare led the local stock market higher as investors second-guess whether US President Donald Trump will be more forgiving when he unveils his tariff regime later this week.
The S&P/NZX 50 index rose 42.6 points, or 0.4%, to 12,312.6. Trading was relatively heavy with a turnover of $232.6 million across the main board.
Trump’s looming tariff regime continued to unnerve investors around the world, with S&P futures down 0.3%, while sentiment has waxes and wanes in the lead up to the import levies. Stock markets across Asia were broadly stronger, with Australia’s S&P/ASX 200 index up 0.9%, Japan’s Nikkei 225 rose 0.2% and Hong Kong’s Hang Seng advanced 1.1%.
F&P Healthcare led the local benchmark index higher, rising 2.9% to $34.50, while Mainfreight gained 1.7% to $62.70. Both companies are among the more exposed to US tariffs.
“There might be a little optimism the worst-case outlook won’t eventuate, but all will be revealed at the Rose Garden on Wednesday,” said Greg Smith, head of retail at Devon Funds Management. “There’s colour, but no detail around the extent of the tariffs, their quantum, or how long they’ll be in place for.”
The Reserve Bank of Australia kept its cash rate unchanged at 4.1% ahead of next month’s election, noting the elevated international uncertainties from the US tariff regime and geopolitics more broadly. The kiwi dollar fell to 90.72 Australian cents from 90.93 cents yesterday.
A pathway lower
New Zealand’s central bank reviews monetary policy next week and is expected to continue to lower the official cash rate. The kiwi dollar traded at 56.72 US cents at 5pm in Auckland from 57.06 cents yesterday.
Tech companies were among the day’s decliners, following the soft lead from the Nasdaq Composite on Wall Street. Gentrack fell 3.5% to $11.05 and Vista Group International slid 2.9% to $3.66, while Eroad declined 3.2% to 92 cents.
That didn’t deter Canada’s Tiny from agreeing to buy a 66% stake of local DJ software firm Serato for US$66 million in cash and shares. The deal is expected to close in the June quarter, subject to Overseas Investment Office and TSX Venture Exchange approval.
Tower posted the biggest decline on the NZX50, falling 6.7% to $1.385 when it resumed trading, holding above the $1.30 price cornerstone shareholder Bain Capital achieved when selling its 19.99% stake through a block trade yesterday.
Auckland International Airport gave back some of yesterday’s gains, falling 2.1% to $8 after it was downgraded to underperform by Forsyth Barr analysts over the transport hub’s lower price increases for the next regulated pricing period. The analysts kept their target price at $7.95.
My Food Bag rose 2.7% to 19.4 cents after retaining its earnings guidance for the March year, and said the meal-kit company lifted revenue 5% in the period.
On Snowball Effect, Glory League Stats is about to close its equity crowdfunding with almost $828,000 pledged, having crossed its minimum threshold yesterday.
Reporting by Paul McBeth. Image from Benjamin le Roux on Unsplash.
