Mainfreight fell for a second day as investors continued to digest the margin-squeeze facing the global logistics firm, while declines for Infratil and Mercury in the end of month flurry dragged the benchmark index lower.
That wasn’t enough to deter the S&P/NZX 50 index from notching up its third monthly gain in a row, with Briscoe Group, Ryman Healthcare and Tower leading the benchmark’s recovery through the depths of winter.
Stock markets were broadly weaker across Asia as US President Donald Trump’s latest moves on copper tariffs took the wind out of the precious metal’s price, sapping Australian mining stocks, while South Korea cut a deal with the world’s biggest economy on the eve of the new import levies coming into effect.
Meanwhile, Microsoft and Meta Platforms rallied in after-hours trading as they both beat earnings expectations when they reported after Wall Street’s closing bell.
A heavy drag
The NZX50 fell 32.23 points, or 0.3%, to 12,823.74, with just 11 stocks declining, 33 gaining and six unchanged. Turnover was $153.9 million across the main board with heavier flows than usual as institutional investors rejigged their portfolios heading into the end of the month.
Mainfreight fell for a second day, down 1.3% at $59.20, after it reported a soft trading update at Wednesday’s annual meeting, with earnings declining despite an increase in revenue.
“Revenue wasn’t too far from expectations, but margins most certainly were,” said Matt Goodson, a managing director at Salt Funds Management. “Some questions are beginning to be asked, particularly in the US and European businesses, about whether they can really get there in terms of growth.”
Infratil was another weight on the index, falling 3.1% to $11.63, while Auckland International Airport slipped 1.2% to $7.53 and Mercury NZ declined 1% to $6.195.
Spark New Zealand was the most heavily traded stock on the day with a volume of 5.4 million as it decreased 0.6% to $2.43.
The daily decline at the end of the month didn’t stop the benchmark index from rallying in July, with a 1.8% monthly gain. Retailer Briscoe Group posted the strongest monthly gain, up 14% at $6.09, while beat-up retirement village operator Ryman Healthcare rose 12% to $2.50 in July and general insurer Tower climbed 9.4% to $1.74.
Gentrack’s 14% decline in the month of July to $10.65 was the steepest on the benchmark index, followed by Mainfreight’s 12% and Serko’s 10% slide to $2.86.
Napier Port posted the biggest gain on the day, up 2.6% at $3.13, while Hallenstein Glasson Holdings advanced 2.4% to $8.70.
Throwing copper
Stock markets across Asia were broadly weaker, with Australia’s S&P/ASX 200 index down 0.1% in late trading as mining stocks were knocked by a slump in copper prices after US President Donald Trump narrowed the types of copper products that will face tariffs from Aug 1.
Meanwhile, South Korea’s Kospi fell 0.8% after the nation reached a tariff deal with the US ahead of the new regime, setting a 15% rate. South Korea’s Samsung this week reached a deal to supply artificial intelligence chips for electric vehicle maker Tesla.
Japan’s Nikkei 225 index was among the few bright spots, up 1% in late trading, after the Bank of Japan kept its monetary policy unchanged. The kiwi dollar at 88.21 yen at 5pm in Auckland from 88.28 yen yesterday.
Meanwhile, the kiwi clawed back losses against the greenback, trading at 59.26 US cents from 58.96 cents at 7am and 59.59 cents yesterday after the US Federal Reserve also stuck to the script in keeping its key rate unchanged.
S&P 500 future are pointing to a 1% gain when Wall Street opens after stronger-than-expected results from Microsoft and Meta, which buoyed tech stocks across Asia. Vista Group International rose 0.9% to $3.51, while both Gentrack and Serko were on the green side of the ledger today.
Reporting by Paul McBeth. Image from Curious News.