New Zealand’s share market joined a regional rally as investors welcomed the month-long reprieve for Mexico and Canada on facing US tariffs after their respective leaders knuckled down on the fentanyl trade in North America.
The S&P/NZX 50 index climbed 94.72 points, or 0.7%, to 12,905.04, with a turnover of $147.6 million across the main board, with most stock markets across Asia recovering some of Monday’s losses that were triggered by US President Donald Trump pressing ahead with his threat of imposing tariffs on his neighbours.
“In the Trump trade, markets were going up and now we’re getting the Trump fade,” said Peter McIntyre, an investment adviser at Craigs Investment Partners. “The relief trade is happening post-Trump’s decisions to hold back on a bit of tariff dollar flexing.”
Across Asia, the S&P/ASX 200 index was up 0.2% in late trading, while Japan’s Nikkei 225 index gained 1.1% and Hong Kong’s Hang Seng jumped 2%. The kiwi dollar rose to 56.05 US cents at 5pm in Auckland from 55.88 cents at 7am and 55.43 cents yesterday.
Fisher & Paykel Healthcare was among those clawing back some of Monday’s losses as it rose 2.3% to $35.92. The medical device maker has manufacturing in Mexico to service its biggest market in the US.
Ebos Group led the NZX50 higher, rising 3% to $41, while Spark New Zealand was the most heavily traded on a volume of 3.3 million, gaining 2.5% to $2.92.
Auckland International Airport increased 0.7% to $8.845 on a volume of 1.4 million and Kiwi Property Group advanced 1.1% to 92.5 cents with 1.4 million shares traded.
Keep calm and carry on
Briscoe Group rose 1.9% to $4.75 after the retailer said fourth-quarter sales grew 1% from a year earlier, and that annual profit was in line with the recently downgraded guidance to be more than $66 million.
Serko posted the biggest decline on the benchmark index, falling 2.7% to $3.65, while Infratil declined 1.9% to $10.905 and Genesis Energy – last week’s second-most bought NZX security by investors on the DIY Invest Direct platform – slipped 1.8% to $2.185.
Fletcher Building fell 1% to $2.85 after Statistics New Zealand figures showed a dip in new building permits being issued in December.
Westpac NZ economist Satish Ranchhod said the figures indicated the residential building cycle has found a floor.
“However, the recovery is expected to be gradual – we don’t expect consent numbers to turn materially higher until the second half of 2025, with a lift in construction activity to follow after that,” Ranchhod said in a note.
Outside the benchmark index, Bremworth surged 15% to 55 cents after the carpetmaker reached a deal with its insurer over its claim in the 2023 cyclone, with $42.2 million to be paid by the end of the month. Bremworth’s market value is $39.1 million.
Vital Healthcare Property Trust was unchanged at $1.865 after its manager decided against separating the entity into separate New Zealand and Australian trusts with independently traded primary listings on each side of the Tasman.
Reporting by Paul McBeth. Image from Curious News.
