New Zealand’s S&P/NZX 50 index was one of the worst performers across Asia as Fisher & Paykel Healthcare was caught up in a souring mood on trans-Tasman health stocks after US President Donald Trump’s threat to impose tariffs on pharmaceuticals.
Travel and tourism companies such as Serko and SkyCIty Entertainment Group were at the bottom of the local leaderboard after Statistics New Zealand figures showed inbound tourism was showing signs of plateauing.
Meanwhile, minnow tech companies ikeGPS and Black Pearl Group both showed an interest in accelerating their growth by buying other companies.
And Vista Group International got a rating upgrade by Forsyth Barr on expectations it will broaden its suite of products.
Odd one out
The NZX50 dipped 8.41 points, or 0.1%, to 12,760.2, slowing its decline at the end of the day, with 16 stocks declining, 28 gaining, and six unchanged. Turnover across the main board was a relatively subdued $96.1 million.
New Zealand was an outlier with stock markets across Asia were broadly stronger, with Australia’s S&P/ASX 200 index up 0.7% in late trading as miners bounced back from yesterday’s selloff on US President Donald Trump’s incoming copper tariffs. Meanwhile, Hong Kong’s Hang Seng was up 0.4% and Singapore’s Straits Times Index rose 0.4%. Japan’s Nikkei 225 index fell 0.6%.
F&P Healthcare fell 1.7% to $36.20, weighing on the broader index, as it joined Australian healthcare companies lower when Morningstar Research affirmed their fair value estimates on several companies after Trump signalled plans to impose tariffs on pharmaceuticals.
Meanwhile, Serko led the index lower, falling 4% to $2.88 with travel and tourism companies weaker after Stats NZ figures showed inbound visitors numbers were levelling out in May. SkyCity declined 4% to 97 cents and Tourism Holdings dropped 2.8% to $2.11. Auckland International Airport increased 0.1% to $7.51 and Air New Zealand was unchanged at 59 cents.
“The challenge will be to try and grow the sector at a time of heightened global uncertainty,” ASB Bank senior economist Mark Smith said in a note. “Increasing trade frictions could deliver a hit to global and NZ tourism over 2025. China and the US are NZ’s second and third largest tourism markets, accounting for more than $4.5billion in annual tourism earnings.”
Dropping a gear
Freightways slipped 0.6% to $11.25 after ANZ’s Truckometer gauge of transport movements showed a dip in both light and heavy traffic measures in June, although the longer-term trend was in line with the broader economic recovery.
Tower shares fell 1% to $1.57 after former chief executive Blair Turnbull and substantial shareholder Salt Funds Management both filed statements showing they’d sold down their holdings.
Meanwhile, property stocks were broadly stronger as two-year swap rates reversed Wednesday gains, falling 3 basis points to 3.18%. The kiwi dollar was largely unchanged at 60.07 US cents from 60 cents yesterday.
Investore Property posted the biggest gain on the benchmark index, up 3.5% at $1.20, while Goodman Property Trust rose 2.5% to $2.07, Stride Property Group advanced 1.7% to $1.22 and Precinct Properties NZ increased 1.6% to $1.25.
Vista Group International rose 0.9% to $3.51 after Forsyth Barr analyst James Lindsay upgraded the stock to ‘outperform’ and lifted his price target 20 cents to $4.30, saying he expects the cinema analytics software firm to add payments to its suite of products in the coming six months.
Fonterra Shareholders’ Fund units gained 0.2% to $6.59 after the Australian Competition and Consumer Commission said it won’t oppose French dairy company Lactalis’s proposed acquisition of the New Zealand dairy giant’s consumer business Mainland Group.
NZX was the most heavily traded stock on a volume of 2.1 million, rising 2% to $1.51. A single trade accounted for 2 million shares, changing hands at $1.50 apiece.
Media musings
Outside the benchmark, NZME declined 0.9% to $1.17 after Australian outdoor advertising company oOh!media was downgraded to a ‘hold’ from a ‘buy’ by Jefferies analysts while they wait on news about the firm’s renewal of the Auckland Transport contract, which accounts for about 5% of oOh!media’s revenue. Separately, Mercury Capital announced plans to sell trans-Tasman magazine publisher Are Media.
Shares of ikeGPS were halted at 93 cents before trading opened to let the power pole analysis firm raise A$18 million in a placement to institutions at 81 Australian cents – or 88 NZ cents. Ike will raise another A$2 million in a share purchase plan after the placement, with the money going towards accelerating new product development and support sales growth, plus give the firm the bandwidth for potential acquisitions.
Black Pearl Group rose 0.9% to $1.15 after the company told shareholders at its annual meeting that it’s weighing up acquisitions to accelerate growth, with two potential transactions currently being looked at.
Commerce and consumer affairs minister Scott Simpson announced an anti-scam alliance between government agencies, consumer groups and the private sector, including Facebook-owner Meta Platforms and Google, to coordinate efforts to reduce the number of people falling for online scams.
Reporting by Paul McBeth. Image from Curious News.
