Fisher & Paykel Healthcare paced the local market lower as the latest round of US tariffs keeps investors unnerved about what will next emerge from Donald Trump’s administration.
The S&P/NZX 50 index dropped 161.42 points, or 1.3%, to 12,249.55, and is down 7.7% from its peak in December. That’s not as steep as Australia’s S&P/ASX 200 index, which entered correction territory, having dropped more than 10% from its peak in February.
Stocks across Asia were broadly weaker after Wall Street was whipped back and forth by the ratcheting up and dialling back of trade tensions between the US and Canada. The S&P 500 is pulling close to correction territory, driven largely by declines in the Magnificent 7 tech stocks.
US President Trump’s 25% tariffs on steel and aluminium imports came into effect on Wednesday in the US, with Australia failing to gain an exemption as it did in the president’s first term.
“It feels like there’s a bit more downside to come before we see buyers step back in – it’s always like that when you’re in a period of change and high uncertainty,” said Market Lister, investment director at Craigs Investment Partners. “We’ve actually been holding up okay through the last three or four weeks in that we’re down a bit less than other markets.”
F&P Healthcare, which has manufacturing in Mexico, was among the day’s biggest decliners, falling 4.7% to $33.32, while logistics group Mainfreight slipped 0.6% to $67.95.
Vista Group International – which dodged the tech selloff yesterday – posted the biggest decline on the benchmark index, sliding 5.4% to $3.69. Sky Network Television fell 4.7% to $2.41.
Retailers were mixed after government figures showed consumer spending on credit and debit cards was flat in February, and as Briscoe Group's annual sales edged lower in a tough trading environment, with a smaller dividend on a lower profit.
Warehouse Group fell 4.3% to 90 cents, KMD Brands declined 1.3% to 37.5 cents, and Hallenstein Glasson Holdings decreased 1% to $8.22, while Briscoe advanced 1.1% to $4.60 and Michael Hill International gained 1% to 49 cents.
Courier company Freightways – often seen as a domestic economic bellwether – gained 2.9% to $11.19 after the ANZ’s Truckometer gauge of traffic – as an economic activity indicator – showed light traffic remained around trend in February.
Air New Zealand posted the biggest gain on the benchmark index, up 1.6% at 63 cents, with the national carrier buying shares on market at an average price of about 61 cents in its buyback scheme.
Spark New Zealand was the most heavily traded stock on a volume of 4.4 million, falling 0.9% to $2.24. The telco expanded its partnership with Hewlett Packard Enterprise as part of its cost-cutting initiatives.
Chorus was unchanged at $8.06 after the Commerce Commission’s draft report into copper line regulation recommended deregulating the old technology.
Tower declined 1.7% to $1.425 after getting final court orders for its $45 million capital return. The insurer will cancel one share in 10, paying almost $1.19 a share to shareholders on the register on March 19. Trading will be halted on March 17 and resume on March 20.
The kiwi dollar traded at 57.01 US cents at 5pm in Auckland from 57.11 cents at 7am and 56.92 cents yesterday.
Reporting by Paul McBeth. Image from Curious News.