The S&P/NZX 50 index outperformed much of Asia as investors embraced the prospect of cooling trade tensions after US President Donald Trump and UK prime minister Kier Starmer announced their deal overnight, with all eyes turning to upcoming talks with China over the weekend.
Blue-chip stocks including Infratil, Ebos Group, Meridian Energy and Fisher & Paykel Healthcare were among day’s bigger drivers, while stock exchange operator NZX led the bourse higher.
Meanwhile, NZME’s board brokered a dignified exit for chair Barbara Chapman, with activist shareholder Jim Grenon dropping plans for a clean sweep and instead putting just his name forward at the upcoming annual meeting, where former minister of everything Steven Joyce will be appointed a director and take up the chair.
And Ryman Healthcare continued to attract heavy trading, with a hefty transaction accounting for most of its elevated volumes.
Good Friday
The NZX50 rose 138.04 points, or 1.1%, to 12,605.07 on Friday, with 27 stocks gaining, 17 declining, and six unchanged. Turnover was $151.1 million.
The benchmark index rounded out a 2.3% weekly gain – its second in a row – with sentiment turning on the trade deal cut between the US and UK seen as a harbinger of easing geopolitical tensions.
US Treasury secretary Scott Bessent is meeting Chinese officials in Switzerland over the weekend, which will be watched closely for any signs of a thawing in the relationship between the world’s two biggest economies.
“All eyes are on Switzerland with US and Chinese officials getting together to break the ice,” said Jeremy Sullivan, an investment adviser at Hamilton Hindin Greene. “It will be interesting to see whether any developments occur.”
Stocks across Asia were generally stronger, with Australia's S&P/ASX 200 index up 0.5% in late trading, while Japan's Nikkei 225 index gained 1.5% and Hong Kong's Hang Seng increased 0.1%.
The kiwi dollar traded at 58.97 US cents at 5pm in Auckland from 59.01 cents at 7am and down from 59.68 cents yesterday.
Blue-chip companies drove most of the day’s gains, with Infratil up 2.7% at $11.60, Ebos advancing 3.3% to $38.90 and F&P Healthcare climbing 1.7% to $35.95.
Electricity generator-retailers were broadly stronger, following this week’s approval of Contact Energy’s acquisition of smaller generator Manawa Energy.
Meridian rose 1.6% to $5.80, while Contact was up 2.4% at $9.15 and Mercury NZ advanced 2% to $6.12.
Leaderboard
Stock market operator NZX led the benchmark index higher, rising 5.3% to $1.58.
Ryman Healthcare was the most heavily traded stock on a volume of 9.2 million as it rose 2.1% to $2.42. The bulk of that was in one trade when almost 6.8 million shares changed hands at $2.38.
Serko posted the biggest decline on the day, falling 2.5% to $3.13. ASX-listed online travel site Webjet was up 8.8% in late trading after BGH Capital built a 5% stake overnight, paying a hefty premium to the 30-day volume-weighted average price.
Vulcan Steel declined 2.3% to $7.80, while Stride Property declined 1.7% to $1.16 and Oceania Healthcare slipped 1.5% to 64 cents.
NZME increased 0.9% to $1.15 after the media company’s board brokered a deal with shareholder Jim Grenon, who was seeking to sweep the board and install his own appointments.
The deal – if ratified by shareholders –will see Grenon take a seat at the board, while chair Barbara Chapman will depart, with Steven Joyce replacing her.
The media company also signed a memorandum of understanding with Australia’s Gumtree Group to look at launching automotive classifieds to compete with Trade Me.
Bremworth declined 1.6% to 63 cents after the carpetmaker said it will re-enter the synthetic market.
Reporting by Paul McBeth. Image from Bruce Röttgers on Unsplash.
