New Zealand’s benchmark index fell for a third day as the relief rally on US markets didn’t follow through into Asia as investors continue to grapple with the elevated uncertainty around global trade.
The S&P/NZX 50 index fell 40.5 points, or 0.3%, to 12,209.05 in a relatively busy trading day with turnover of $228.2 million across the main board.
The local market started the day in positive territory as Wall Street staged a recovery on the prospect of cooling inflation paving the way for lower interest rates if the US economy staggers under the weight of President Donald Trump’s trade war with the world.
That reversed as the day wore on, with downgrades on mining stocks weighing on Australia, while softer domestic migration data raised the prospect of a more subdued housing market. The kiwi dollar traded at 57.31 US cents at 5pm in Auckland from 57.25 cents at 7am, and up from 57.01 cents yesterday.
“The stabilisation in permanent and long-term arrivals and upward historical revisions in recent months looks to have modestly alleviated the risk of net PLT outflows over 2025,” ASB Bank senior economist Mark Smith said in a note. “Nonetheless, weaker net immigration has eroded a key leg of support for the NZ housing market, domestic demand, and labour market capacity.”
Fletcher Building led the top 50 lower, falling 3.4% to $3.17, while Steel & Tube Holdings slipped 1.3% to 79 cents.
Peter McIntyre, an investment adviser at Craigs Investment Partners, said Fletcher was giving back some of its gains in February, when it rallied almost 19%.
“Fletcher’s run up pretty hard in comparison to a lot of other stocks,” he said.
Ageing out
Retirement village operators – which are typically linked to the housing market – were weaker, with Oceania Healthcare declining 3.1% to 63 cents and Summerset Group Holdings falling 2.1%, or 25 cents, to $11.50 as it shed rights to a 13.2 cents per share dividend.
Ryman Healthcare fell 3.1% to $2.84 after underwriters had to pick up 53 million shares in the retail component of its $1 billion capital raising, as 42% of retail investors subscribed to the $3.05 offer.
New Zealand’s tariff-exposed companies were weaker, with Fisher & Paykel Healthcare falling 1.1% to $32.95 and Mainfreight declining 0.7% to $67.50.
Spark New Zealand was the most heavily traded stock with a volume of 4.7 million shares changing hands as the telco fell 1.3% to $2.21.
Sky Network Television posted the biggest gain on the benchmark index, up 4.2% at $2.51 after hiking its price for its Sky Sport offering and securing exclusive New Zealand broadcast rights for the British and Irish Lions tour of Australia.
Companies still carrying dividends found favour among investors, with Genesis Energy up 3.2% at $2.27, PGG Wrightson gaining 3.1% to $2, Auckland International Airport rising 1.9% to $8.05 and NZX advancing 1.9% to $1.63.
The government unveiled two public-private partnership propositions at its infrastructure investment summit in Auckland today; a $400 million courthouse development and $700 million-to-$800 million expansion of Christchurch men’s prison announced. The government also sought investment in a new drydock in Northland.
Infrastructure investment firm Infratil declined 1.7% to $10.10.
Millennium & Copthorne Hotels New Zealand rose 2.1% to $2.40, recovering from its recent decline as its majority shareholder City Developments Ltd – which is seeking to pay $2.25 a share to minorities in a takeover – quelled internal ructions on its board.
Reporting by Paul McBeth. Image from Curious News.