The S&P/NZX50 index nudged lower and the kiwi dollar dropped more than half a US cent as local investors keep one eye on US President Donald Trump’s upcoming announcements on which nation will get slapped with what tariff.
Meanwhile, meetings from the Reserve Bank of Australia and New Zealand’s central bank have got local investors’ other eye, with the trans-Tasman duo set to make their views known over the coming two days.
PGG Wrightson dipped after saying it’s building out its livestock offering with the $20 million acquisition of Nexan Group, which makes animal health products.
And SkyCity Entertainment Group was on the green side of the ledger after an Australian investor filed a class suit against the casino operator over anti-money laundering failures at its Adelaide property.
Flatlining
The NZX50 edged down 1.65 points to 12,764.95, with 27 companies declining, 20 advancing, and three unchanged.
Stocks across Asia were broadly weaker, with Australia’s S&P/ASX 200 index down 0.3% in late trading, while Japan’s Nikkei 225 declined 0.6% and Hong Kong’s Hang Seng fell 0.4% as investors await the latest edict from the White House on its tariff regime, with the 90-day delay on their imposition set to end this week.
US President Donald Trump has threatened to slap an extra 10% on to countries that align themselves with anti-American nations and will start issuing letters to trading partners setting the rates, with the new import levies to come into effect from August.
The kiwi dollar dropped to 60.09 US cents at 5pm in Auckland from 60.61 cents at 7am and 60.73 cents last week, and was almost unchanged at 92.40 Australian cents from Friday.
Meanwhile, investors are also awaiting policy reviews from the RBA on Tuesday and New Zealand’s Reserve Bank on Wednesday, with Australia’s central bank expected to cut a quarter point while NZ’s is predicted to stay put.
“There’s the RBNZ this week – that’s widely reported to be highly likely to be a non-event, but it will be closely watched around the rhetoric or outlook as to whether there’s a cut at the next meeting or the one after that,” said Jeremy Sullivan, an investment adviser at Hamilton Hindin Greene.
Rag-trade
Retailers led the NZX50 lower, with KMD Brands falling 3.7% to 26 cents and Hallenstein Glasson Holdings declining 2.8% to $8.36.
Contact Energy was the most heavily traded stock with a volume of 3.5 million as it dipped 0.1% to $9.03.
Index heavyweights were mixed, with Fisher & Paykel Healthcare slipping 1.6% to $36.01, while Infratil rose 2.9% to $11.08. The Australian Financial Review’s Street Talk column reported Infratil’s RetireAustralia investment may have found a suitor, having struggled to secure a buyer when it was shopped around last year.
Oceania Healthcare gained 4.3% to 73 cents and Ryman Healthcare advanced 3.4% to $2.42.
Vulcan Steel posted the biggest gain on the benchmark, up 5.2% at $6.71.
SkyCity rose 2.2% to 93 cents. The casino operator is facing a class suit over AML failings at its Adelaide property, with litigation funder Litigation Capital Management confirming the action was filed in the New South Wales Supreme Court.
It’s a deal
Outside the benchmark index, Wrightson slipped 0.5% to $2.09 after saying it will spend $20 million buying animal healthcare products maker Nexan Group, with the deal set to be completed later this month. Rural services firm Allied Farmers rose 5.3% to 79 cents.
Meanwhile, high-tech components maker Rakon hit a seven-month high, ending the day up 4.6% at 68 cents.
NZME was unchanged at $1.18 after announcing the departure of chief financial officer David Mackrell in December. He’s going to join Sky Network Television in January. The pay-TV operator slipped 1.7% to $2.98.
Synlait Milk declined 1.6% to 60 cents after announcing the upcoming exit of chief operating officer Paul Mallard, while Bremworth rose 3.3% to 62 cents after announcing the retirements of George Adams and John Rae from the board.
Reporting by Paul McBeth. Image from Curious News.
This story has been updated to correct Paul Mallard's name.
