New Zealand’s S&P/NZX 50 index dipped in the first day of the week as tensions persisted through US and Iran peace negotiations, ultimately making progress for further discussions despite President Donald Trump’s threatening strikes if Hezbollah continued attacking Israel. The energy sector was the biggest drag on the local bourse, with Meridian Energy, Mercury NZ and Vector weighing on the index, joining their Australian sector peers as oil prices eased. Local software firms Gentrack, Serko and Vista Group International joined the sell-off across Australasia, with
WiseTech Global slumping on news that founder and executive chair Richard White was being investigated by Australian federal police. Meanwhile, Fletcher Building hit a three-month high as its streamlined business found favour among investors and A2 Milk Co advanced after securing Chinese registration for two products at its Pōkeno site paved the way for a special dividend. The NZX50 fell 49.58 points, or 0.4%, to 13,446.05, with 37 stocks declining, 10 gaining and three unchanged. The S&P/NZX 20 index futures contract for June rose 0.7%
to 7,627 with 20 lots traded for a value of $153,000, while the NZX20 slipped 0.4% to 7,605.57. Turnover across the main board was $109.7 million, of which Auckland International Airport accounted for $12.5 million as it increased 0.2% to $8.52. Stock markets across Asia were mixed as investors digested the latest peace talks between the US and Iran, which threatened to be derailed as President Trump ratcheted up pressure over Hezbollah’s attacks on Israel. Brent crude oil futures fell 1.4% to $79.25 a barrel
at 5pm in Auckland as the parties made progress, signing off a roadmap to a final deal within 60 days. “There’s been a ceasefire in Lebanon and they’ve concluded talks in Switzerland, but the ongoing tensions are not good for the market,” said Peter McIntyre, an investment adviser at Craigs Investment Partners. “It’s a fairly mixed day in Asia.” Australia’s S&P/ASX 200 index dipped 0.1% in late trading, while Japan’s Nikkei 225 jumped 2% and Hong Kong’s Hang Seng fell 1.2%. Software softens Australian software
firms were among the hardest hit across the Tasman, with WiseTech slumping 15% amid reports that executive chair White was being investigated by the AFP over claims he exploited a female worker. Other software companies were also weaker as Xero declined 2.5%, while on this side of the Tasman, Gentrack dropped 4.9% to $3.68, Serko slipped 1.5% to $1.61 and Vista decreased 0.9% to $2.30. Outside the benchmark index, Eroad slid 1% to $1.02 after activist investor Ampfield said it didn’t expect to succeed in
its boardroom ouster at Wednesday’s annual meeting. Energy companies were the biggest drag on the local bourse, with Meridian down 2.2% at $5.90, Mercury slipping 1.4% to $6.89 and Vector dropping 2.6% to $4.85. Fisher & Paykel Healthcare slipped 0.4%, or 15 cents, to $38.22 after shedding rights to an upcoming dividend payment of 33 cents per share. KMD Brands posted the steepest decline on the day, falling 5% to 7.6 cents, while Fletcher led gainers on the NZX50 up 5% at $3.34. The a2
Milk Co gained 1.7% to $8.25, paring an earlier rally of as much as 11%, after securing Chinese import registration for two products produced at its Pōkeno site south of Auckland. With the approval in place, a2 Milk’s board is expected to declare a $300 million special dividend. SkyCity Entertainment Group was the most heavily traded stock on the day with a volume of 2.1 million shares changing hands, falling 4.3% to 55.5 cents. The casino operator gained 25% last week in its strongest weekly
rally since listing in 1996, according to Iress data. Outside the benchmark, Taiko Critical Minerals was unchanged at 30 cents after signing a conditional agreement to buy 304 hectares of farmland for $18 million in cash and shares, completing binding deals for core mining blocks of the project. WasteCo was unchanged at 0.9 cents. Just before trading closed, the waste management firm said chair and chief executive Roger Gower would step down from the board next month, with Sean Joyce taking over the role. The
company said Gower would stay as an interim chief executive while the board seeks a permanent CEO. Reporting by Paul McBeth.
NZX50, Middle East peace talks, US Iran negotiations, Hezbollah, Brent crude, Meridian Energy, Mercury NZ, Vector, WiseTech Global, Richard White investigation, Fletcher Building, a2 Milk special dividend, Pōkeno Chinese import registration, SkyCity, Auckland International Airport, WasteCo, Roger Gower, Sean Joyce, NZX20 futures