New Zealand’s S&P/NZX 50 index sank 1% after Statistics NZ figures showed the first quarterly decline in exports in two years, triggering a widespread selloff as investors fretted over the emerging impacts of US President Donald Trump’s tariff regime.
Meanwhile, it was a day of deals as Sky Network Television signed a dollar deal to buy free-to-air TV network Three, and Fletcher Building hired advisers to run a sales process for some of its businesses.
Across the Tasman, CC Capital reached a deal to buy ASX-listed financial services firm Insignia Financial for A$3.3 billion.
And Catalist’s latest angel investing update showed a smaller amount of money being spread across more deals in the June quarter.
A sea of red
The NZX50 dropped 127.77 points to 12,833.74, with 34 stocks declining, 12 gaining and four unchanged. Turnover across the main board was $184.2 million, of which Mainfreight accounted for $56.4 million as the logistics firm declined 1.2% to $66.20.
Fisher & Paykel Healthcare, the country’s biggest listed company, declined 1% to $36.69, while fellow heavyweight Auckland International Airport fell 2.6% to $7.60.
Stats NZ figures showed goods exports fell 3.7% to $19.7 billion in the three months ended June 30, the first quarterly decline in two years.
The kiwi dollar traded at 59.59 US cents at 5pm in Auckland from 59.51 cents yesterday.
Jeremy Sullivan, an investment adviser at Hamilton Hindin Greene, said the softer trade figures hung over the broader market, with the impact of US President Donald Trump’s tariff regime starting to show up in the local data.
“You’ve got to bear in mind we’re still up 13% year-on-year, primarily from the strength in the dairy sector,” Sullivan said.
Infant formula exporter a2 Milk Co declined 0.7% to $8.47 while Fonterra Shareholders’ Fund units dipped 0.2% to $6.60. Synlait Milk was unchanged at 64 cents.
Utilities software maker Gentrack led the local market lower, falling 4.4% to $11.32, while retailer KMD Brands slipped 3.8% to 25.5 cents and travel software firm Serko fell 3.2% to $2.875.
Bargain hunting
Meanwhile, Sky TV posted the biggest gain on the day, up 4.8% at $3.06, having hit a post-covid high of $3.10 on an adjusted basis. The media group agreed to buy Discovery NZ’s Three linear TV business and streaming platform ThreeNow for a nominal $1 as the pay-TV operator prepares to mount a more aggressive claim for advertising against state-owned Television New Zealand.
Sullivan said Sky should be able to find some synergies with the free-to-air network by stripping out duplication.
“It’s already been through two or three cost-cutting exercises, so it’s probably a lean enterprise,” he said.
Outside the benchmark index, publisher and radio operator NZME declined 1.7% to $1.14 on a small volume.
Fletcher Building increased 0.3% to $3.06 after the building materials firm said it’s hired advisers to look at potential sales of its construction division, Higgins, Brian Perry Civil and major projects units.
The juggernaut stalls
Across the Tasman, Commonwealth Bank of Australia extended its decline, weighing on the other major banks. The dual-listed lenders were both down on the NZX, with Westpac Banking Corp slipping 1.4% to $35.60 and ANZ Group Holdings declining 1.6% to $32.49.
Meanwhile, Insignia rallied on the ASX after reaching a deal with CC Capital for the New York private equity firm to pay A$4.80 per share, or A$3.3 billion, to buy the financial services after a months-long pursuit.
Back on the NZX, Black Pearl Group climbed 7.1% to $1.20 after reporting a more than doubling of annual recurring revenue in the June quarter.
Rakon rose 2.7% to 76 cents after naming Mark Bergman as its incoming chair when Lorraine Witten retires at next month’s annual meeting.
Third Age Health Services increased 0.9% to $4.32 after announcing chief executive Tony Wai resigned and will leave the firm in October.
And junior bourse operator Catalist’s June quarter angel investment update showed the early stage investor groups invested $1.5 million in the period, about half that of a year earlier, across 38 deals, up 58% from June 2024.
“Anecdotally, deals are taking longer to progress, but investor interest has remained upbeat, with several deals collecting sizeable commitments from the angel network during the quarter,” the report said.
Reporting by Paul McBeth. Image from Curious News.