Vista International Group stumbled in local trading as US President Donald Trump’s proposed 100% tariffs on movies made outside the States finally weighed on the Kiwi cinema analytics software developer, having cast a dark pall over entertainment companies in the US, such as Warner Bros Discovery and Netflix.
That was enough to drag the S&P/NZX 50 index lower, with the benchmark slipping into red territory. SkyCity Entertainment Group was among the big decliners as the casino operator hit a record low after downgrading its earnings outlook.
Meanwhile, Infratil rallied on renewed hopes that all that investment in artificial intelligence infrastructure won’t be for naught.
NZME gained after its board put forward a peace deal for activist shareholder Jim Grenon to consider, by installing former minister of everything and radio entrepreneur Steven Joyce as its new chair.
A fine thing
The NZX50 was almost unchanged as it snapped a three-day gain and decreased 0.16 of a point to 12,421.09. Across the index, 23 stocks fell, 20 rose, and seven were unchanged, while turnover on the main board was $108.7 million.
Vista led the local bourse as it sank 7.4% to $3.40, following US entertainment stocks lower as investors come to grips with Trump’s attempts to revive the golden age of Hollywood by slapping tariffs on productions outside the US.
The cinema software firm initially sidestepped the news, which emerged on the Truth Social platform on Monday, but the proposed tariff occupied US media through the day.
Meanwhile, SkyCity sank as low as $1.04 to end the day down 6.1% at $1.08 after cutting its earnings guidance.
“It’s hard going and there’s no end to the challenges on the horizon for them,” said Matt Goodson, managing director at Salt Funds Management. “A lot of the high-roller business is gone forever and the grind business is going to be tougher with the regulatory oversight.”
Mainfreight gave up some of its recent gains, falling 2.1% to $62.20, while Freightways declined 2.8% to $10.
Dual-listed lender Westpac Banking Corp fell for a second day, down 2% at $34.47.
Not dark yet
Meanwhile, Infratil posted the biggest gain on the benchmark index, up 3.7% at $11.58.
Goodson said investors took some heart out of Australia’s NextDC confirming a new customer, easing some of the fears that have been lingering about the strength of investment in AI infrastructure.
Oceania Healthcare gained 3.2% to 64 cents on an unusually large volume of 2.5 million – the biggest for the day – after Forsyth Barr increased its stake in the aged care operator to more than 10%.
Meridian Energy had the biggest impact on the index as it gained 3% to $5.83.
Outside the top 50 index, NZME jumped 6.6% to $1.13 after the board put forward an alternative to agitator Jim Grenon’s proposed ousting of the board. Under the proposed peace deal, chair Barbara Chapman will hand over the chair to newcomer Steven Joyce – who was nominated by Chapman’s husband – and depart after a transition period.
Salt’s Goodson – whose fund holds shares of the media group – said the prospect of Joyce joining the board was interesting.
“It’s a name that potentially makes sense given his background in the radio industry and other experience,” Goodson said.
Reporting by Paul McBeth. Image from Jake Blucker on Unsplash.
