New Zealand shares joined the rally across Asia as US President Donald Trump’s carve-out for automakers from the tariff regime underlined the volatility in global markets.
The S&P/NZX 50 index rose 16.77 points, or 0.1%, to 12,428.84, shaking off the impact of several top 50 companies shedding rights to their dividends. Across the main board, turnover was $152.3 million.
Stocks across Asia followed on from Wall Street’s late rally when Trump gave Ford Motor Co, General Motors and Stellantis a month reprieve on the 25% tariffs levelled on Canada and Mexico. Japan’s Nikkei 225 was up 1.1% at 5pm in Auckland, while Singapore’s Straits Times Index advanced 0.8% and Hong Kong’s Hang Seng climbed 2.6%.
The kiwi dollar rose to 57.31 US cents at 5pm in Auckland from 57.15 cents at 7am and 56.48 cents yesterday.
Meanwhile, Australia’s S&P/ASX 200 index dropped 0.6% in late trading as lower oil prices weighed on that nation’s energy companies.
“Investors are a little bit nervous, and they seem to jump out as soon as there’s a bit of bad news and back in on good news,” said Jeremy Sullivan, an investment adviser at Hamilton Hindin Greene. “Overall, pessimism is quite elevated given how strong the run we’ve had – especially in the US market – and as Trump makes it up as he goes along.”
Infratil led the NZX50 higher, climbing 2.6% to $10.50 as it snapped a three-day decline, while Kiwi Property Group increased 1.6% to 93 cents, and Oceania Healthcare rose for a second day, increasing 1.5% to 68 cents.
A storm is coming
NZME posted the biggest gain on the main board, up 4.4% at $1.20 after saying it’s received a notice from new substantial shareholder Jim Grenon to spill its board at its annual meeting in April and appoint four new directors.
The media company – which is considering spinning out its OneRoof real estate listings unit – said Grenon, who owns almost 10% of the company, claimed to have support from shareholders with 37%. Separately, Osmium Partners is seeking to appoint two directors to NZME’s board.
Michael Hill International gained 1% to 49 cents after tapping chief financial officer Andrew Lowe as interim chief executive after the sudden death of Daniel Bracken last month. Director Claudia Batten was appointed deputy chair of the board, and she, chair Rob Fyfe and director Gary Smith will support Lowe while the recruitment process for a permanent CEO takes place.
Air New Zealand, which shed rights to a 1.25 cent dividend today, fell 4%, or 2.5 cents, to 59.5 cents after announcing the departure of chief executive Greg Foran in October. The national carrier posted the biggest decline on the benchmark index.
Auckland International Airport gained 1.2% to $8.15 and travel software developer Serko rose 0.6% to $3.62, while Tourism Holdings was unchanged at $1.85.
A raft of companies shed rights to their dividend today, weighing on the NZX50, which is a gross index.
Among the largest, Meridian Energy fell 2.6%, or 14.5 cents, to $5.405 after shedding its 6.15 cents dividend, Port of Tauranga declined 1.8%, or 12 cents, to $6.60 having shed its 7 cents dividend, and Precinct Properties New Zealand dipped 1.3%, or 1.5 cents, to $1.175 as its stapled securities shed rights to a 1.6875 cents dividend.
Spark New Zealand declined 0.7% to $2.225 after S&P Global Ratings placed the telecommunications firm’s A- credit rating on a negative outlook due to its difficult operating conditions and increased debt levels.
Fisher & Paykel Healthcare, which is exposed to the tariff ructions through its Mexican manufacturing, declined 1.1% to $33.40 after signing Dominion Constructors to build its fifth building at its East Tāmaki campus in Auckland. The total cost of the building is expected to be $250 million.
Fletcher Building increased 0.3% to $3.32 after government data showed the volume of building work put in place shrank 4.4% in the December quarter, with residential construction declining at a faster pace than commercial building.
Vista Group International gained 0.5% to $3.72 after the cinema software analytics firm signed existing client Village Roadshow Australia to its cloud product.
Smartpay Holdings was unchanged at 60 cents after the payments company said it will expand its New Zealand acquiring solution to a broader network after a successful pilot.
Reporting by Paul McBeth. Image from Curious News.