New Zealand shares missed the global rally on speculation US President-elect Donald Trump’s tariff regime might be more nuanced than first thought, as domestic power companies continued to get pushed around in the jockeying ahead of potential MSCI index changes.
The S&P/NZX 50 index fell 30.87 points, or 0.2%, to 13,042.06, joining the Shanghai Composite, Hong Kong’s Hang Seng and Jakarta’s IDX Composite among the few bourses across Asia in the red.
Genesis Energy and Meridian Energy led the local market lower, falling 3.1% to $2.205 and 3% to $5.82 respectively, as trading in the power companies remained robust as investors ponder whether Contact Energy will replace Mercury NZ in the next MSCI index reweighting.
Mercury was the most heavily traded stock on a volume of 2.3 million, rising 1.1% to $5.72, while Contact advanced 0.3% to $9.70 on a volume of 1.6 million. Manawa Energy, which Contact hopes to buy, increased 0.5% to $5.81.
Infratil fell for a fifth day, down 1.6% at $12.05, its lowest close since Dec 12, while Spark New Zealand declined 1.4% to $2.90.
Summerset Group declined 0.4% to $12.90 after reporting flat December quarter sales.
Fruitful investigation
Fruit exporter Scales Corp posted the day’s biggest gain on the benchmark index, up 2.1% at $3.95. Scales recovered from yesterday’s slump amid reports that biosecurity officials were investigating the discovery of a single exotic fruit fly. T&G Global also rallied, rising 4.9% to $1.50.
Global markets broadly gained on reports that Trump might be more selective in his imposition of tariffs, allaying fears they'd snarl up global supply chains and trading relationships, while strong sales for server maker FoxConn bolstered demand for chip stocks and tech companies.
Eroad was among the day’s stronger gainers on the local bourse, rising 6.8% to $1.10, while Pacific Edge advanced 2.3% to 13.3 cents, Gentrack climbed 1.9% to $12.69 and Vista Group International advanced 1.6% to $3.20.
That wasn’t universal for all local exporters and tech companies. IkeGPS fell 3.5% to 56 cents and Black Pearl Group slipped 2.7% to $1.07.
The tariff news weighed more broadly on the greenback, with the kiwi rising to 56.61 US cents at 5pm in Auckland from 56.40 cents at 8am and 56.22 cents yesterday.
Reporting by Paul McBeth. Image from Curious News.
