Ebos Group helped keep the S&P/NZX 50 index in positive territory with stock markets across Asia broadly stronger as the US-Japan trade agreement buoys optimism US President Donald Trump will cut more deals before his tariff regime comes into effect next week.
Travel and tourism companies were among those leading the local bourse higher, with Tourism Holdings and SkyCity Entertainment Group at the top of the leaderboard, shrugging off the cooler outlook from Hilton Worldwide overnight.
Government bond yields crept higher on both sides of the Tasman after speeches from central bankers, keeping a lid on listed commercial landlords such as Kiwi Property Group and Goodman Property Trust.
And NZX chief executive Mark Peterson announced the end of his run leading the stock exchange operator, signalling he’ll finish up his time in April.
All quiet on the western front
The NZX50 increased 11.07 points, or 0.1%, to 12,805.13, with 24 stocks gaining, 19 declining and seven unchanged. Turnover was a relatively quiet $93.4 million.
Stock markets across Asia were broadly stronger as investors remained upbeat after US President Donald Trump’s deal with Japan yesterday to limit the harsh tariff regime, and amid reports European officials are working to match a similar agreement.
Japan’s Nikkei 225 index was up 1.7% in late trading, while Hong Kong’s Hang Seng rose 0.7% and Singapore’s Straits Times Index advanced 0.8%.
Australia’s S&P/ASX 200 index was down 0.3% in late trading, retreating from its record highs, with Macquarie among the financial stocks weighing on the index after announcing the departure of its chief financial officer and as it faces a strike on its remuneration report at today’s annual meeting.
Dual-listed Ebos Group joined the broader gain among healthcare stocks in Australia, rising 2.5% to $40.76 and buoying the NZX50.
If you took a holiday
Tourism Holdings led the NZX50 higher, climbing 2.9% to $2.12 – still below the $2.30 price offered by the Trouchet family and BGH Capital – while SkyCity Entertainment Group extended its gain after getting upgraded by Forsyth Barr analysts, rising 2% to $1.03 and Air New Zealand increased 0.9% to 58.5 cents. Outside the benchmark, Millennium & Copthorne Hotels New Zealand jumped 6.8% to $3.
Reserve Bank chief economist Paul Conway told a business audience the US tariff regime’s impact on New Zealand is most likely going to be through slower global growth, reducing demand for local exports and potentially easing domestic inflation pressures.
The kiwi dollar traded at 60.55 US cents at 5pm in Auckland from 60.44 cents at 7am and 60.16 cents yesterday, while the yield on 10-year New Zealand government bonds rose 5 basis points to 4.6%.
Meanwhile, the kiwi traded at 91.48 Australian cents from 91.60 cents yesterday after Reserve Bank of Australia governor Michelle Bullock warned inflation might take longer to rein in, and that a measured and gradual approach to lowering the target cash rate was appropriate.
Commercial landlords, which are sensitive to interest rates, were broadly weaker, with Kiwi Property Group posting the biggest decline on the NZX50, falling 3% to 96 cents, while Goodman Property Trust slipped 2.4% to $2 and Stride Property Group decreased 1.6% to $1.23.
NZX declined 1.3% to $1.54 after chief executive Mark Peterson announced his departure in April next year, by which time he said he expects to have achieved the key initiatives he’s been focused on since his contract extension two years ago.
Spark New Zealand was the most heavily traded stock on a volume of 2.8 million, slipping 1.2% to $2.47.
Reporting by Paul McBeth. Image from Curious News.
