NZX50 joins global rout as Trumpcession fears linger

New Zealand joined the rout on global stock markets as investors remain unnerved by the rapid ebbs and flows of the White House’s tariff regime and whether it will tip the world’s biggest economy into recession.

The S&P/NZX 50 index fell 105 points or, 0.8% to 12,410.97. Across the main board, turnover was $152.5 million.

Stocks across Asia were broadly weaker, with Australia’s S&P/ASX 200 index down 0.8% in late trading and Japan’s Nikkei 225 index falling 1.4%, following Wall Street lower after US President Donald Trump refused to say whether his trade war will end up shrinking the economy.

The tech-heavy Nasdaq Composite was the hardest hit, with the Magnificent 7 leading the charge as Tesla unwound all its gains since Trump’s re-election in November.

“It’s totally offshore leads from Trump, his tariffs and their on-again, off-again nature – markets hate uncertainty,” said Matt Goodson, managing director at Salt Funds Management. “There’s quite a clear theme which is a big rotation out of high-multiple tech stocks.”

Still, that sentiment may be turning, with US futures pointing to a 0.1% increase for the S&P 500, and Goodson said Asian markets had generally come off their lows through the trading session.

Gentrack led the local market lower as it was swept up in the tech selloff, falling 4.5% to $10.55, while Rakon dropped 3.6% to 54 cents and Eroad declined 2.1% to 93 cents.

Not all tech

Cinema analytics firm Vista Group International dodged the selloff, rising 5.1% to $3.90 in the biggest gain on the benchmark index as it signed up another existing customer to its cloud product.

Heavyweight companies were among those caught up in the decline, with Infratil slipping 2.7% to $10.29, Ebos Group falling 2.1% to $37, Auckland International Airport sliding 1.2% to $7.96 and Mercury NZ down 2.4% at $5.73.

Global logistics firm Mainfreight, which has US operations that face some disruption from the trade war, fell 2% to $68.50 and Fisher & Paykel Healthcare, which has manufacturing in Mexico, decreased 0.2% to $34.95.

Warehouse Group rose 2.2% to 94 cents and Hallenstein Glass Holdings gained 0.9% to $8.30 after ANZ Bank New Zealand said spending on its electronic card network rose 1% in February. Government data on credit and debit card spending are due on Wednesday.

Fonterra Shareholders’ Fund units rose for a second day, up 0.4% at $5.47. Fonterra Cooperative Group yesterday raised its earnings outlook and kicked off a roadshow shopping its consumer business to potential investors if it proceeds with an initial public offering for the newly-branded Mainland Group business.

Spark New Zealand was the most heavily traded stock with a volume of 2.9 million shares traded. It rose 0.9% to $2.26.

Government figures today showed the volume of manufacturing sales grew 1.1% in the December quarter, with meat and dairy products driving gains.

The kiwi dollar fell to 56.92 US cents at 5pm in Auckland from 57.11 cents at 7am and 57.12 cents yesterday.

Reporting by Paul McBeth. Image from Natilyn Hicks Photography on Unsplash.