Investors remain on edge as they weigh up which way the US will go in its Liberation Day tariff regime.
The S&P/NZX 50 index increased 7.9 points, or 0.1%, to 12,320.19, hovering between positive and negative territory for much of the trading session. Turnover across the main board was $95.4 million, with activity more subdued than previous days this week when it nudged above $200 million.
“The stock markets are a little on nerve-watch at the moment as they await Liberation Day to see what percentage tariff increases are going to be put on the rest of the world,” said Peter McIntyre, an investment adviser at Craigs Investment Partners. “Markets are being driven by interest rates, but the also don’t like uncertainty, and if a number comes out, the market might calm itself down.”
Meridian Energy led the benchmark index higher, rising 2% to $5.835, while Mercury NZ advanced 0.4% to $5.69 as wholesale electricity prices held above $400 per megawatt hour. Contact Energy fell 2.1% to $8.96 while Genesis Energy was unchanged at $2.165.
Fisher & Paykel Healthcare, which has operations in Mexico exposed to the US tariff regime, rose 1.7% to $35.10, while global logistics group Mainfreight dipped 0.1% to $62.65.
A primary sector
Fonterra Shareholders’ Fund units gained 1.1% to $5.70 after the latest Global Dairy Trade auction showed a 1.1% increase in the GDT price index, and other listed primary sector companies also rallied.
Rural services firm PGG Wrightson climbed 9.5% to $1.96, kiwifruit grower Seeka increased 6% to $3.91 and apple exporter T&G Global rose 3.6% $1.73.
“We had a very good dairy trade auction overnight, which is positive for NZ Inc,” McIntyre said. “That’s one of the positives that our economy can look to.”
Insurer Tower rose 1.1% to $1.40, with Accident Compensation Corp’s investment arm lifting its stake to 9.1% from 7.9% after Bain Capital’s block trade earlier this week. The US private equity firm sold its near-20% stake at $1.30 a share.
Fletcher Building slipped 0.6% to $3.26 after Statistics New Zealand figures showed new residential building consents rose for a second month in a row, with annual permits remaining steady for the past nine months.
The New Zealand dollar rose to 57.21 US cents at 5pm in Auckland from 56.95 cents at 7am and 56.72 cents yesterday.
Air New Zealand slipped 0.8% to 62.5 cents amid reports in Australia that Bain Capital is looking to re-list Virgin Australia in an initial public offering as soon as June this year.
Reporting by Paul McBeth. Image from Dieter Mueller on Unsplash.
