New Zealand shares fell for a third day as investors remain on edge ahead of central bankers’ views on the impact of the US tariff programme.
The kiwi dollar fell to 86.49 yen from 87.03 yen yesterday after the Bank of Japan kept its benchmark interest rate unchanged, and said it needed more time to gauge the impact of US President Donald Trump’s tariff regime.
Investors are watching for hints on central bank thinking on the trade tensions, with the US Federal Reserve and the Bank of England also due to review their policies this week.
“There’s quite a lot of central bank updates in the next couple of days and investors are keeping a very close watch on the outlook,” said Jeremy Sullivan, an investment adviser at Hamilton Hindin Greene. “And the markets are watching what’s going on in Gaza, in Ukraine, and the Trump tariffs, with the policy supposed to be out on the second of April.”
New Zealand’s S&P/NZX50 index declined 30.92 points, or 0.3%, to 12,045.93, in busier trading than usual with a turnover of $204.9 million across the main board. Stock markets were mixed across Asia, with Australia’s S&P/ASX 200 down 0.3% in late trading, Japan’s Nikkei 225 index up 0.4% and Hong Kong’s Hang Seng increasing 0.2%.
The a2 Milk Co fell 1.3% to $9.24 on heavier trading than usual as institutional investors prepare for the milk marketing firm to join the S&P/NZX 10 index. The company had a volatile day, trading as high as $10.10 and as low as $9.13 on a volume of 4.8 million.
The milk marketer was cut to neutral from overweight by Barrenjoey today.
Ryman Healthcare, which is making way for a2 on the top 10 index, fell 2.1% to $2.74 on a volume of 2.7 million. Spark New Zealand was unchanged at $2.075 on a volume of 4.8 million.
Fonterra Shareholders’ Fund units increased 0.9% to $5.65 ahead of the dairy cooperative’s first-half result tomorrow, which is expected to show improved earnings for the world’s biggest milk exporter. Milk prices were largely unchanged at the latest Global Dairy Trade auction.
Tightening the belt
Retailers were mixed after a Westpac McDermott Miller survey showed consumer confidence deteriorated in the March quarter, with households feeling the pinch of higher costs and talk of a trade war fuelling pessimism.
Hallenstein Glasson Holdings led the market lower, falling 3.5% to $7.53, while Warehouse Group declined 1.2% to 85 cents, breaking new record low territory. Briscoe Group slipped 1.1% to $4.45, while Michael Hill International rose 1.1% to 47 cents and KMD Brands gained 1.4% to 36.5 cents, notching up the biggest gain on the benchmark index.
Genesis Energy fell 1.4%, or 3 cents, to $2.17 after shedding rights to a 7.1 cents per share dividend, while Auckland International Airport rose 0.1%, or 1 cent, to $7.88 having shed rights to its 6.25 cents dividend.
Government data today showed New Zealand’s annual current account deficit shrank less than expected to $26.4 billion, or 6% of gross domestic product, in calendar 2024. Statistics New Zealand is due to release December quarter GDP figures on Thursday.
The kiwi held on to its recent gains against greenback, trading at 58.12 US cents at 5pm in Auckland from 58.18 cents at 7am and 58.14 cents yesterday.
Exporter Fisher & Paykel Healthcare rose 1.1% to $32.50.
Santana Minerals gained 0.8% to 62 cents, as gold prices remain near record levels on the heightened geopolitical risk. Gold futures increased 0.1% to US$3,045 an ounce.
SkyCity Entertainment Group rose was unchanged at $1.18. Radio New Zealand today reported the TAB’s offer to secure an online casino licence was rejected.
Reporting by Paul McBeth. Image from Will H McMahan on Unsplash.
