New Zealand’s S&P/NZX 50 index fell in a mixed day across Asian stock markets, with investors eyeing up the Federal Reserve’s first policy meeting under chair Kevin Warsh and how the advocate for lower interest rates will sum up the inflation outlook. Fletcher Building dipped in heavy trading, with the building materials firm reining in debt with $450 million of asset sales, while warning that mounting construction costs were delaying and, in some cases, cancelling projects which could weigh on the company’s outlook later this
year. Craigs Investment Partners hosted Channel Infrastructure, Port of Tauranga and Vista Group International at an investor showcase in Queenstown, with the infrastructure duo’s updates finding more favour than the cinema analytics firm. And New Zealand’s annual current account deficit remained stable at 3.6% of gross domestic product in the March quarter, ahead of Statistics New Zealand’s GDP release on Thursday, which is expected to show the economy was on the mend before the Middle East conflict broke out. Holding pattern The NZX50 declined 33.15
points, or 0.3%, to 13,392.98, with 34 stocks falling, 15 gaining and one unchanged. The S&P/NZX 20 index futures contract for June edged down to 7,602, with 13 lots trading for a value of $99,000. The NZX20 dipped 0.2% to 7,584.73. Turnover across the main board was $164.4 million, with Auckland International Airport accounting for $21.3 million as it rose 0.8% to $8.64. Stock markets across Asia were mixed after Wall Street investors shifted from tech names to more familiar financial and industrial companies, buoying
the blue-chip Dow Jones Industrial Average, ahead of the Federal Reserve’s first policy meeting under the chairmanship of Kevin Warsh. Economists expect the Fed will keep the federal funds rate in a range of 3.5%-to-3.75%. Australia’s S&P/ASX 200 index rose 0.5% in late trading and Japan’s Nikkei 225 gained 0.4%, while Hong Kong’s Hang Seng dipped 0.3%. The kiwi dollar pared its overnight gains, trading at 58.26 US cents at 5pm in Auckland, up from 58.08 cents yesterday as the yield on New Zealand’s 10-year
government bond fell 6 basis points to 4.39%. Hamilton Hindin Greene investment adviser Jeremy Sullivan said the 2.8% decline in milk prices at the latest Global Dairy Trade auction combined with falling oil prices to help ease domestic inflation, and prompted bond traders to pare back their expectations for rate hikes by the Reserve Bank. “Markets have kicked the can down the road in terms of a third rate rise this year,” Sullivan said. “The rate rise in December is now priced out to February.”
Meridian Energy was the biggest drag on the NZX50, falling 2.7% to $5.82, while Infratil declined 1.3% to $14.85 and Mainfreight dropped 2% to $63.77. Serko posted the steepest decline on the day, sliding 4.8% to $1.60, while Investore Property decreased 2.8% to $1.03. Building expectations Fletcher Building dipped 0.6% to $3.22 on a volume of 3.5 million shares – the most for the day – after saying $450 million of asset sales brought it near the middle of its target net debt range. The
materials firm said annual earnings excluding discontinued operations would be between $375 million and $380 million in the 12 months ended June 30, compared to $384 million a year earlier. “Given their recent troubles, a more stable capital structure is beneficial for the business,” Sullivan said, noting the update was largely as expected. Vista fell 1.7% to $2.28 after reaffirming revenue and margin guidance at an investor day, while saying global box office was trading 11% ahead of the prior year at the end of
May. Meanwhile, Channel Infrastructure gained 1.3% to $3.13 after affirming earnings guidance at the same investor day and Port of Tauranga advanced 1.6% to $8.29 as it talked up its position to play a key role in any national port strategy. SkyCity Entertainment Group posted the biggest gain on the day, up 1.9% at 53.5 cents, while NZX advanced 1.8% to $1.44. Outside the benchmark index, Taiko Critical Minerals gained 3.5% to match its record 30 cents after lodging its annual financial statements. The would-be
miner last week applied for fast-track consent on the southern block of its critical minerals prospect. Seeka fell 1% to $4.91 after the fruit grower said annual earnings were forecast to fall to between $38 million and $42 million in calendar 2026 from $47.5 million last year. Reporting by Paul McBeth.
NZX50, Kevin Warsh, Federal Reserve, Fletcher Building, Meridian Energy, Global Dairy Trade, bond yields, kiwi dollar, current account deficit, Statistics New Zealand GDP