Warehouse Group led the local market lower as it sank to a record low with squeezed margins, while blue-chip stocks such as Infratil and Ebos Group weighed on the benchmark index.
The S&P/NZX 50 index fell 51.37 points, or 0.4%, to 12,489.64. Turnover was $178.5 million across the main board.
Australia’s S&P/ASX 200 index was up 0.6% in late trading, while Japan’s Nikkei 225 gained 1.5% and Hong Kong’s Hang Seng advanced 1.2%, which welcomed a strong debut for China’s top bubble tea chain Mixue.
Local investors have been digesting a lacklustre earnings season where expectations were low given it captured the trough of New Zealand’s protracted recession.
Warehouse Group reaffirmed that tepid view as the retailer said first-half sales were down 1.6% from continuing operations and that it was on track to report a loss before interest and tax of $14 million in the period with gross margins remain under pressure and consumer sentiment subdued. The stock sank to a record low 90 cents, ending the day down 8.1% to 91 cents.
“Warehouse’s margins were the key reason for that stock’s decline – sales weren’t too bad, but the guidance was weak,” said Jeremy Sullivan, an investment adviser at Hamilton Hindin Greene.
Among other retailers, Michael Hill International was unchanged at 49 cents, Briscoe Group fell 0.7% to $4.47, KMD Brands gained 2.6% to 39 cents, and Hallenstein Glasson Holdings increased 0.9% to $8.07.
Heavyweight companies Infratil and Ebos were among the larger drags on the index, both falling 3.4% to $10.52 and $38.11 respectively.
More on tariffs
Fisher & Paykel Healthcare was also weaker, dipping 0.5% to $33.91. The medical device maker has been one of the more exposed local companies to the US administration’s tariff programme, and President Donald Trump is expected to settle on the level he plans to impose on neighbours Canada and Mexico before they come into effect on Tuesday.
China’s state-backed Global Times reported the world’s second biggest economy is preparing countermeasures to new US tariffs, with American agriculture exports the likely target.
Meanwhile, Statistics New Zealand figures showed the nation’s terms of trade rose 3.1% in the December quarter as gains for export prices outpaced increased import prices.
The kiwi dollar traded at 56.02 US cents at 5pm in Auckland from 55.94 cents at 7am and 56.03 cents last week.
Synlait Milk rose 5.8% to 92 cents after the milk processor appointed Richard Wyeth as its new chief executive. The former Westland Milk and Miraka Milk boss starts on May 19.
New Zealand King Salmon gained 8.3% to 26 cents after the fish farmer secured government funding for a five-year investment programme, including its Blue Endeavour open ocean aquaculture pilot.
Tag, you’re it!
T&G Global advanced 1.9% to $1.63 after the fruit exporter narrowed its annual loss and lifted revenue 2% as it continued to recover from the impacts of Cyclone Gabrielle in 2023. The company’s accounts were tagged by auditor Deloitte with a material uncertainty over its ability to remain a going concern, as it secured an extension to a waiver from its lenders after breaching the covenant relating to the net worth of its controlling shareholder, BayWa.
Sky Network Television posted the biggest gain on the NZX50, rising 4.8% to $2.64 after the pay-TV operator extended its rights deal with Cricket Australia, having won back rights to screen international cricket matches played domestically last month.
NZME was unchanged at $1.15 after TOM Capital founder James Grenon emerged as a substantial shareholder of the media group with a 9.3% stake. The substantial shareholder notice said there’s no current intention to mount a takeover bid.
The media group’s shares rallied last week when it hired Jarden to review its OneRoof real estate listings business, including a potential spinout of the unit.
Californian investment manager Repertoire Partners fell below the substantial shareholder threshold, selling down to 2.7%.
Millennium & Copthorne Hotels New Zealand dropped 4.3% to $2.44 as its controlling shareholder and suitor City Developments Ltd resumed trading on the Singapore exchange after a court hearing relating to its boardroom stoush.
Bremworth rose 3.4% to 61 cents after a group of shareholders moved to oust the board and install new directors to revive the carpetmakers fortunes after years of underperformance.
IkeGPS climbed 9% to 85 cents after the power pole analysis firm secured two multi-year contracts in the US worth $3 million.
The Smart Bitcoin exchange traded fund jumped 16% to $3.70, following an 8.3% gain in bitcoin to US$92,902 after US President Trump named three crypto currencies that will go into a new US strategic crypto reserve.
Reporting by Paul McBeth. Image from Curious News.
Disclosure: Paul McBeth has been a shareholder of Bremworth since February 2024.
