New Zealand shares snapped their five-day rally as US President Donald Trump’s latest pivot on tariffs revived uncertainty among investors about global trade.
The S&P/NZX 50 index slipped 28.39 points, or 0.2%, to 12,305.79, with a modest turnover of $104 million across the main board.
Stock markets across Asia were mixed as investors digested the latest twist in the US trade policy. Trump said he’ll impose a 25% tariff on imports of all cars not made in the US, starting from April 2. That’s the same day he’s expected to unveil a global programme of reciprocal import levies.
“The second of April, or third of April for us, is the day for the finalisation of the tariffs and what exemptions and reciprocity actually means,” said Jeremy Sullivan, an investment adviser at Hamilton Hindin Greene.
Tariff-exposed companies were weaker, with medical device maker Fisher & Paykel Healthcare declining 1.2% to $34.17 and global logistics firm Mainfreight slipping 2.3% $64.25.
Infratil fell 2.5% to $10.53. Chipmakers were broadly weaker in the US and Asian trading after Microsoft was reported to have cancelled several data centre leases in the US and Europe.
Tech companies were broadly weaker, with Serko falling 1% to $3.86, Eroad slipping 1% to 97 cents and Gentrack declining 0.7% to $10.33. Vista International Group gained 2.7% to $3.80, snapping a three-day decline.
Vital Healthcare Property Trust posted the biggest decline on the benchmark index, falling 2.6% to $1.71.
Second wind
Ryman Healthcare posted the biggest gain on the NZX50, rising 5.3% to $2.80, and continuing its recovery from a 13-year low earlier this week. The retirement village operator today finalised the repayment of a $275 million term loan to institutions, with break fees and other costs of $22 million.
Meridian Energy led a rally among power companies, rising 3.3% to $5.68. Mercury Energy gained 0.7% to $5.64 and Genesis Energy advanced 0.5% to $2.165, while Contact Energy increased 0.2% to $8.64 after saying it will appeal the rejection of its proposed Southland windfarm.
NZ King Salmon Investments was unchanged at 22.5 cents after reporting a 53% slide in annual profit, having previously warned of a higher fish mortality rate than anticipated.
NZME rose 0.8% to a two-year high $1.21. The media company’s board is embroiled in a battle for control with rebel shareholder Jim Grenon. Today the NZ Herald reported that shareholder Roger Colman will support Grenon’s election to the board, but not his three nominees.
Minnow would-be miner New Talisman Gold Mines surged 23%, or 1.6 cents, to 89.6 cents, extending its rally this week when it said it expected to start production next month.
The kiwi dollar traded at 57.32 US cents at 5pm in Auckland from 57.30 cents at 7am, and 57.46 cents yesterday.
Sullivan said next month’s Reserve Bank policy review remains a key piece of information for investors, with markets pricing in two further quarter-point cuts to the official cash rate, currently at 3.75%.
Reporting by Paul McBeth. Image from Bernd 📷 Dittrich on Unsplash.
