Global logistics firm Mainfreight clawed back much of April’s losses after saying it will report pre-tax earnings and revenue ahead of analysts’ expectations, but warned there’s a cooling in trans-Pacific sea freight bookings as the stoush between China and the US keeps customers wary.
China tentatively opened the door for trade negotiations with the US – provided they’re sincere – giving investors across Asia a reason to cheer, with the S&P/NZX 50 index joining the rally.
And there was a recovery for the likes of Ryman Healthcare and Auckland International Airport, which were among those sold off leading into the end of April.
Meanwhile, New Zealand property mogul Bob Jones died at the age of 85, having built the $2 billion-plus Robt Jones Holdings real estate empire spanning 35 buildings across Auckland, Wellington and Scotland.
On the rise
The NZX 50 rose 179.29 points, or 1.5%, to 12,327.89, with 27 gainers, 15 decliners, and eight unchanged. Turnover across the main board was $145.7 million. The index notched up a 2.6% weekly gain.
Mainfreight led the local market higher, jumping 12% to $62.01, and unwinding some of the slide since US President Donald Trump first unveiled his proposed tariff regime. The logistics group said it would beat analysts’ forecast for pre-tax earnings of $375 million and revenue of $5.1 billion, but that forward bookings for trans-Pacific sea freight bookings were slowing.
“There’s still some question marks in the very near-term on tariffs,” said Shane Solly, portfolio manager at Harbour Asset Management. “This has put a line under the share price.”
Stock markets across Asia were broadly higher after China’s commerce ministry said Beijing is evaluating an offer of trade talks by the US, which investors took as a potential sign of a thawing in the Sino-American relations. Australia’s S&P/ASX 200 index was up 1.1% in late trading, while Hong Kong’s Hang Seng advanced 1.8%. S&P 500 futures were up 0.8% at 5pm in Auckland.
Jobs, jobs, jobs
The kiwi dollar traded at 59.30 US cents at 5pm from 59.08 cents at 7am and 59.42 cents yesterday. US non-farm payrolls data are a major piece of data investors are watching for signs the Federal Reserve will cut its key interest rate.
Ryman Healthcare and Auckland airport were among the day’s bigger gainers, recovering from some sharp selling into the end of April. Ryman rose 3.1% $2.34 and Auckland airport advanced 1.9% to $7.735.
Commercial landlords were also broadly stronger after heavy selling earlier this week. Vital Healthcare Property Trust gained 2.6% to $1.795, Goodman Property Trust increased 1.9% to $1.90, Kiwi Property Group rose 1.2% to 87.5 cents, and Investore Property advanced 0.9% to $1.07.
Stride Property Group fell 2.6% to $1.13 after noting Accident Compensation Corp’s investment arm lifted its stake to almost 14%.
Retailer KMD Brands posted the biggest decline on the day, falling 2.9% to 33 cents, while Tourism Holdings slipped 2.9% to $1.40. Serko declined 2.2% to $3.55.
Spark New Zealand was the most heavily traded company with a volume of 4.1 million shares. It ended the day unchanged at $2.105.
The kiwi dollar fell to 92.48 Australian cents from 92.82 cents yesterday as the public prepares to go to the polls on Saturday. The incumbent Labor administration is expected to be returned in a minority government.
Reporting by Paul McBeth. Image from Jerry Shen on Unsplash.
