New Zealand’s benchmark S&P/NZX 50 index gained 2.7% in the June quarter, unwinding some of the carnage wrought by US President Donald Trump’s new tariff regime in the first three months of the year.
The benchmark index rallied late in the day to mark its third daily gain in a row after Canada’s backdown on its digital services tax to reopen trade talks with the US revived investor confidence across Asia.
Meanwhile, Jarden’s Australian arm filed its annual financial statements showing a 33% increase in fees and commission in the March 2025 year, albeit on skinnier margins as its pre-tax profit shrank on the West Island.
And New Zealand business confidence improved in the latest ANZ survey, although firms’ own activity remained weak.
A thaw in June
The NZX50 rose 19.23 points, or 0.2%, to 12,602.82, with 27 gainers, 17 decliners, and six companies unchanged, taking the quarterly gain to 2.7%. Turnover across the main board was $146.4 million.
The benchmark index is down 3.9% so far this year, lagging behind rallies on Wall Street and Australia, with the US S&P 500 up 5% so far this year and Australia’s S&P/ASX 200 advancing 4.9% with those markets gaining once the imminent threat of US President Donald Trump’s Liberation Day tariff regime eased.
Markets across Asia were broadly stronger, and the kiwi dollar traded at 60.74 US cents at 5pm in Auckland from 60.61 cents last week after Canada dropped its digital services tax aimed at capturing revenue from big tech firms and limit their ability to use cross-border structuring of their tax affairs to minimise their bills. Trump cut off trade talks last week over the tax.
SkyCity Entertainment Group led the local market higher, up 4.4% at 94 cents. Across the Tasman, ASX-listed Star Entertainment’s Hong Kong investors have threatened to quit a deal that would alleviate the stricken casino operator’s financial woes.
Heartland Group Holdings rose 3.9% to 80 cents and Vector advanced 3.8% to $4.35.
Dwindling pessimism
New Zealand’s business confidence rose 9 points to a net 46% of respondents to ANZ’s monthly business outlook survey expecting better economic times ahead, while expectations for their own activity gained 6 points to a net 41%. Still, their experienced activity in June fell 3 points to 2%.
“The rise was unsurprising – ANZ had previously indicated that the responses had been stronger in the second half of May (albeit based on a small sample) as some concessions emerged and as global markets came to accept the new tariff policy,” Westpac NZ senior economist Michael Gordon said in a note. “Confidence remains high overall, though down from the peaks seen at the end of last year.”
Meridian Energy was the most heavily traded company on a volume of 3 million shares as it rose 2.3% to $5.90, buoying the broader index. Auckland International Airport gained 1.5% to $7.745 on a volume of 2.5 million and Air New Zealand increased 0.9% to 58.5 cents with 2.4 million shares changing hands.
Napier Port will rejoin the top 50 index on July 8 once Manawa Energy leaves the bourse when Contact Energy absorbs the electricity generator. The port operator’s shares were unchanged at $3.22, while Manawa dipped 0.2% to $6.29 and Contact decreased 0.4% to $9.
West Island growth
Jarden Australia’s financial statements lodged with the Australian Securities and Investments Commission showed the investment firm's Australian arm reported a profit of A$1.9 million in the 12 months ended June 30 on revenue of A$130.2 million, compared to a profit of A$10.8 million on revenue of A$102.8 million the prior year, when the bottom line was buoyed by a A$5.4 million tax benefit.
The trans-Tasman investment firm has previously said group revenue climbed 29% to $241.7 million when it posted record earnings before interest, tax, depreciation, amortisation and bonuses of $98 million.
Meanwhile, Australian share trader forum Hot Copper is changing hands after ASX-listed Gumtree Australia Markets signed a binding deal to sell its capital markets business, which also includes Stockhouse in Canada, to ADVFN at an enterprise value of A$6.8 million.
Gumtree said it sale will let it focus on growth opportunities such as developing a new online auto classifieds marketplace with New Zealand media group NZME, which gained 5.4% to $1.18 on the NZX.
Reporting by Paul McBeth. Image from leyvaine Davids on Unsplash.
