The S&P/NZX 50 index fell 0.6% this week, snapping a three-week run in the green, as US President Donald Trump’s renewed focus on slapping tariffs on the rest of the world weighed on trade-exposed companies such as Fisher & Paykel Healthcare.
T&G Global rallied on news Germany’s BayWa plans to sell its cornerstone stake, having attracted a number of suitors.
And PGG Wrightson hit a month high after the rural services firm said its annual earnings would beat guidance as the primary sector remained a beacon for New Zealand’s economy.
Meanwhile, a2 Milk Co ended its four-day decline amid news China’s government might inject more stimulus into the world’s second-biggest economy.
Dour day
The NZX50 fell for a third day, declining 73.52 points, or 0.6%, to 12,686.68, and ending its three-week run of weekly gains. Twenty-five stocks declined, 20 rose and five were unchanged, while turnover across the main board was a relatively subdued $104.3 million.
Stocks across Asia were mixed as Hong Kong’s Hang Seng rallied 2% after an adviser to the People’s Bank of China recommended a 1.5 trillion yuan injection by the government to revive subdued consumer spending. NZX-listed a2 Milk Co, which is often tied to the strength of Chinese consumers, rose 0.8% to $7.98, snapping four days of declines and paring its weekly loss to 9%. Synlait Milk jumped 8.1% to 67 cents and Fonterra Shareholders’ Fund units gained 0.3% to $6.61.
Meanwhile, Australia’s S&P/ASX 200 index was marginally in the green in late trading as US President Donald Trump’s 35% tariff on neighbouring Canada was the latest announcement where the new global trade order was high on investors’ minds.
Local blue-chips stocks were broadly weaker on Friday as Fisher & Paykel Healthcare fell 1.6% to $35.62, Mainfreight declined 1.8% to $64.01, Auckland International Airport slipped 0.5% to $7.47 and Meridian Energy decreased 1.9% to $5.76.
Contact Energy declined 0.8% to $9.04 after completing its acquisition of generator Manawa Energy, and saying it would provide more details about its plans to redeem the $375 million of listed Manawa bonds on July 14. Infratil, which now owns 9.5% of Contact, slipped 0.5% to $10.90.
KMD Brands led the market lower, falling 3.7% to 26 cents.
Dividend time
Turners Automotive Group fell 2.2%, or 15 cents, to $6.73 after shedding rights to a 9 cents per share dividend.
Chorus was unchanged at $8.55 after the broadband network operator said average data usage was up 4.5% in the June quarter, while new fibre connections outpaced the removal of copper lines. Spark New Zealand fell 1.4% to $2.515.
Ryman Healthcare posted the biggest gain on the day, up 4.6% at $2.50 after the retirement village operator said total sales fell 11% in the June quarter, with resales of occupation rights declining at a slower pace than new sales. Oceania Healthcare rose 1.3% to 76 cents and Summerset Group Holdings fell 3.1% to $11.63.
Manufacturers gained after the BNZ-BusinessNZ performance of manufacturing index showed industrial activity improved in June, contracting at a slower pace than May.
“We are currently forecasting zero growth in June quarter GDP, with downside risk,” Bank of New Zealand senior economist Doug Steel said in a note. “These manufacturing data will do nothing to assuage these views, nor do they temper our view that further rate cuts are necessary.”
Skellerup rose 2.1% to $4.95, Fletcher Building advanced 2% to $3.06 and Vulcan Steel gained 1% to $7.17.
The kiwi dollar traded at 60.16 US cents at 5pm in Auckland from 60.29 cents at 7am, and 60.07 cents yesterday.
Takeover talk
Outside the benchmark index, T&G Global jumped 6.2% to $1.90 after confirming BayWa plans to sell its controlling stake of the fruit exporter. The company said it’s reviewing its business and has received a large number of suitors, with Craigs Investment Partners hired to support the exporter.
PGG Wrightson rose 6.9% to a month-high $2.17 after the rural services company said operating earnings were around $54 million in the year ended June 30, beating an earlier forecast of $51 million, with favourable growing conditions and elevated commodity prices. The company will report its annual result on Aug 12.
WasteCo increased 5.9%, or 0.1 of a cent, to 1.8 cents after the waste management firm said chief operating officer Chris Brown resigned, effectively immediately.
Vital was unchanged at 43 cents after suitor Tait International said it won’t budget on its 45 cents per share offer, which had been recommended by the target company’s board. Substantial shareholder Salt Funds Management told BusinessDesk it hadn’t decided on whether to accept after criticising the independent valuation.
The Smart Bitcoin exchange traded fund climbed 4.9% to $4.273 after Bitcoin extended its rally into record territory, up 3.1% at US$116,921 at 5pm.
Nasdaq-listed Rocket Lab increased 0.2% to US$39.16 in afterhours trading after the space company said it contracted Bollinger Shipyards to build an ocean landing platform for its reusable Neutron rockets, with delivery expected early next year.
Reporting by Paul McBeth. Image from Priscilla Du Preez 🇨🇦 on Unsplash.
