Blue chips Meridian Energy and Auckland Airport did the heavy lifting.
Scales apple production line.
New Zealand’s S&P/NZX 50 index was one of the few markets on the green side of the ledger in the Asian trading session, with apple exporter Scales Corp snapping a three-day decline to lead the benchmark higher after US President Donald Trump relaxed some reciprocal tariffs on the likes of kiwifruit and beef products.
Gains among heavyweights including Meridian Energy, Auckland International Airport, Infratil and Ebos Group paced the local market higher, more than offsetting a decline for Fisher & Paykel Healthcare.
Companies linked to the property market had a mixed response to Real Estate Institute of New Zealand figures showing a muted October for the residential housing market, while Statistics New Zealand data prompted some economists to pare back their inflation expectations, making it easier for the Reserve bank to cut its benchmark rate next week.
And Warehouse Group dipped after the retailer’s first-quarter trading update showed the Noel Leeming and Blue Sheds stationery chain drove increased sales, while the flagship Red Sheds margins shrank.
The NZX50 increased 34.58 points, or 0.3%, to 13,499.04, with 32 stocks gaining, 14 declining and four unchanged. Turnover across the main board was a relatively subdued $105.1 million, with Fisher & Paykel Healthcare accounting for almost $17 million of that as it declined 1.9% to $36.98.
Gains among other heavyweights offset the medical device maker’s decline, with Auckland International Airport rising 1.3% to $7.90, Meridian Energy up 2.1% at $5.95, Infratil advancing 0.8% to $11.87 and Ebos Group gaining 2.2% to $29.45.
The local bourse was among the stronger performers across Asia, with Australia’s S&P/ASX 200 down 0.2% in late trading, while Japan’s Nikkei 225 index fell 0.4% and Hong Kong’s Hang Seng dropped 0.8%.
Peter McIntyre, an investment adviser at Craigs Investment Partners, said it’s a busy week locally with a slew of annual meetings and company earnings, but the main event will be US chipmaker Nvidia’s quarterly earnings on Wednesday.
“Are they able to continue on with their strong earnings and demand?” McIntyre said. “Some of their suppliers Nvidia cross-references with have reported well and I wouldn’t be surprised if it’s another really good result.”
Scales Corp led the NZX50 higher on Monday as it rose 3.3% to $5.91, snapping a three-day decline and recovering from a month low.
The apple exporter’s gain coincided with US President Donald Trump’s relaxing of tariffs on certain agricultural imports. For New Zealand exporters, that includes beef and kiwifruit, but not apples.
Real Estate Institute of New Zealand figures showed a dip house prices last month alongside a small increase in sales volumes. That got a mixed response from listed companies linked to the residential property market, with Summerset Group Holdings gaining 3.3% to $12.65, Oceania Healthcare up 1.9% at 82.5 cents and Ryman Healthcare advancing 0.4% to $2.85, while Fletcher Building declined 1.2% to $3.41.
Serko posted the biggest decline on the NZX50, falling 5.4% to $2.45 ahead of reporting its first-half earnings on Tuesday. Other tech companies were broadly weaker, with Gentrack falling 4.7% to $7.69 and Vista Group International declining 1.2% to $2.55.
Outside the benchmark index, Warehouse Group declined 0.6% to 79.5 cents after the retailer said gross margins in the flagship Red Sheds shrank in the first quarter, with steeper discounting needed to drive sales growth. The retailer is seeking to cut costs by laying off head office staff.
Other retailers were mixed, with Briscoe Group up 1.5% at $5.48 and Hallenstein Glasson Holdings increasing 0.2% to $9.94, while KMD Brands fell 1.8% to 27.5 cents and Michael Hill International was unchanged at 39 cents.
Black Pearl Group slipped 2.2% to $1.13 after resuming trading after raising A$10.2 million at NZ$1 a share in a placement to institutional investors.
Meanwhile, Comvita sank 7.6% to 49 cents after confirming shareholders rejected the 80 cents per share offer from Mark Stewart’s Florenz, with the final tally showing it fell short on both counts, with 54% of votes cast and 44% of total shares in favour of selling missing the 75% and 50% thresholds needed for a scheme.
The kiwi dollar fell to 56.63 US cents at 5pm in Auckland from 56.87 cents last, with Statistics New Zealand’s monthly partial inflation reading coming in softer than expected, with some economists seeing a downside risk for the December quarter consumers price index and easing the path for the Reserve Bank to cut the official cash rate next week.
Reporting by Paul McBeth.
Sign up to get the latest stories and insights delivered to your inbox – free, every day.
