New Zealand shares outperformed markets across Asia as heavyweights such as Ryman Healthcare, Meridian Energy and Fisher & Paykel Healthcare rallied on the prospect of a narrower US tariff regime when all is revealed next week.
The S&P/NZX 50 index advanced for a fifth day, climbing 149.67 points, or 1.2%, to 12,186.85. Turnover was $228.1 million across the main board.
The local market outperformed its Asian peers in a broadly stronger day, with investors remaining optimistic US President Donald Trump will stick to the narrower tariff regime mooted when he unveils them next week. Australia’s S&P/ASX 200 index rose 0.8% in afternoon trading, while Japan’s Nikkei 225 index was up 0.7% and Hong Kong’s Hang Seng gained 0.3%.
“We’re having one out of the box today,” said Peter McIntyre, an investment adviser at Craigs Investment Partners. “Really, we’re trying to work out whether Trump’s had a softening stance on the tariff outlook, while weaker economic data in the US has the potential for more interest rate cuts.”
Ryman led the local benchmark index higher, climbing 6% to $2.66, having hit a 13-year low on an adjusted basis yesterday.
McIntyre said the underwriters to the retail component of its $1 billion capital raising might still be clearing shares, but its stronger balance sheet should stand the retirement village operator in good stead when the property market starts reviving.
F&P Healthcare gained 4.7% to $34.60, and Meridian rose 3.2% to $5.50.
Hefty volume
Spark New Zealand was the most heavily traded company, rising 0.5% to $2.075 on a volume of 6.5 million shares.
KMD Brands fell 4.1% to 35.5 cents after reporting a 74% slide in first-half earnings as margins remained under pressure.
McIntyre said the result was slightly ahead of guidance, but showed the retailer’s wholesale channel remained its biggest challenge.
Among other retailers, Warehouse Group slid 4.4% to 87 cents, while Hallenstein Glasson Holdings rose 2.4% to $8.24.
Fonterra Shareholders’ Fund units posted the biggest decline on the NZX50 after shedding rights to a 22 cent dividend. The fund fell 5.9%, or 35 cents, to $5.55.
Synlait Milk fell for a third day, dropping 6.3% to 74 cents and has shed 27% so far this week as investors were disappointed by its outlook for the second half of the financial year.
NZME rose 3.5% to $1.20 after the board released a second letter from rebel shareholder Jim Grenon outlining his updated plans for the board if he’s successful in his ouster.
The kiwi dollar traded at 91.08 Australian cents at 5pm in Auckland from 90.99 cents yesterday after Bureau of Statistics figures showed a slowing pace of annual inflation across the Tasman. The New Zealand dollar rose to 57.46 cents from 57.22 cents yesterday.
Reporting by Paul McBeth. Image from Curious News.
