Market Announcements
Market Summary
The New Zealand sharemarket, down nearly 1% yesterday, predictably followed a sharp sell-off on Wall Street. But President Donald Trump may have calmed investors’ nerves by again backtracking on China tariff threats. The S&P/NZX 50 Index fell at the opening to a low of 13,315.99, but it steadied and closed at 13,351.92, down 115.34 points or 0.86%. There were 40 gainers and 109 decliners on volumes of 33.2 million share transactions worth $105.74m.
Wall Street had its worst day since April after Trump threatened an additional 100% tariff on Chinese goods, accusing China of becoming “very hostile” with its restrictions on rare earth metals. The technology-laden Nasdaq Composite slumped 3.56%, the S&P 500 fell 2.71%, and the Dow Jones Industrial Average was down 1.9%. The S&P 500 shed US$1.56 trillion (NZ$2.7t) in market value in one day. By Sunday, Trump was saying on Truth Social: “Don’t worry about China, it will all be fine.”
Jeremy Sullivan, investment adviser with Hamilton Hindin Greene, said the local market was playing catch-up with Wall Street. “The fears that sent the US market into a tailspin were reversed after Trump’s retracement of increasing tariffs on China. “The markets there have a knack of shooting first and asking questions later. There was a good reason to take some profits,” he said.
A capital raising of more than $300m by Precinct Properties sent the property sector into a spin after its recent strong gains. The sector fell 2.2% on the NZX. Stride Property was down 4c or 2.63% to $1.48; Goodman Trust fell 8c or 3.49% to $2.21; Argosy declined 4c or 3.03% to $1.28; and Vital Healthcare Trust decreased 5c or 2.14% to $2.29. Kiwi Property was down 3c or 2.67% to $1.095; Property for Industry declined 5c or 1.95% to $2.52; and Investore decreased 2c to $1.26.
Sullivan said there was selling pressure to free up cash for the Precinct capital raise. The interest rate falls have actually made the property stocks more attractive and are nearing their net tangible asset values. Precinct is at a 10% premium. Precinct Properties entered a trading halt after announcing a $310m capital raising at $1.23 per share, involving a $285m institutional placement and a $25m share purchase plan. It last traded at $1.33. Precinct said it is starting a $201m 638-bed student accommodation in Queen St, Auckland, on top of the 964-bed development already underway in Stanley St.
Fletcher Building was down 7c or 2.13% to $3.22 after reporting another disappointing quarterly performance. The company said there were further declines in trading volumes and ongoing pressure on margins amid subdued market conditions during the first quarter (July to September). The market remains highly competitive, as demand stays low, particularly across the residential and infrastructure sectors. Given the continued deterioration in market conditions, Fletcher is targeting further cost savings of $100m, with $50m to be realised in the second half of the current financial year. Sullivan said the Fletcher update was more of the same for them. “It’s been a while since an update hasn’t disappointed the market – going back to the problems with the Justice Precinct (in Christchurch) in 2017.”
Market leader Fisher and Paykel Healthcare was down 40c to $35.85; Ebos Group shed 40c to $29.18; Gentrack decreased 43c or 4.52% to $9.08, Synlait Milk fell 4c or 5.06% to 75c; and Freightways declined 26c or 1.94% to $13.12. Chorus was down 18c or 1.95% to $9.07 as the government considers reducing its stake.
PGG Wrightson was down 2c to $2.55 after telling the market it is expecting full-year operating earnings (ebitda) above $60m compared with $56.1m for the 2025 financial year. The rural services company said the agricultural sector experienced a strong rebound during 2025, supported by buoyant export commodity prices and solid consumer demand, leading to boosted confidence in production decisions for its customers. Turners Automotive went against the trend and increased 16c or 2.24% to $7.31, while Oceania Healthcare gained 1.5c or 2.04% to 75c.
Source: Business Desk
Australian Market Report
Ahead of the local open SPI futures were 3 points higher at 8881.
- close [Morningstar with AAP]: Australian shares have tumbled on the back of a resumption of US-China trade tensions, stoking worries about global growth and tech company valuations.
The S&P/ASX200 fell 75.5 points on Monday, down 0.84 per cent, to 8,882.8, as the broader All Ordinaries lost 81 points, or 0.87 per cent, to 9,183.3.
While investors had increasingly discounted US public trade announcements as negotiating tactics in recent months, China's call to initiate export controls on rare earths was different, Moomoo market strategist Michael McCarthy said.
"(Investors) can't do that this time around because it has come from the other side of the equation - it was China's moves on rare earths that have shifted the dial," he told AAP.
"China is not moving, and even if the US is calling, the phone's not being picked up at the moment."
Ten of 11 sectors traded lower, as IT stocks tumbled two per cent and a heavy financials sector (down 1.2 per cent) weighed on the bourse, while gold and rare earths miners found support.
ANZ was the only big four bank in the green on Monday, up 3.3 per cent to a ten-year high after unveiling a hefty $800 million cost-cutting plan.
NAB and CBA were the worst performers of the big four, dipping more than 1.8 per cent each.
The raw materials sector was one of the better performers, handing back 0.1 per cent as goldminers and rare earths plays helped offset weakness in BHP and mixed miners.
Safe haven flows helped spot gold smash through fresh peak of $US4,078 ($A6,250) an ounce, lifting local miners such as Northern Star (up 1.6 per cent) and Evolution (2.6 per cent).
Energy stocks tumbled 1.2 per cent, with broad sector losses as oil prices skidded to four-month lows following the US-China trade spat, but staged a small rebound during the ASX session.
Real estate was the only segment to notch a gain, but the 0.03 per cent lift was not much to write home about.
Health care stocks came under renewed pressure, led by slumps in Prod Medicus (down 5.6 per cent) and Cochlear (2.3 per cent) as high growth sectors sold off.
Consumer-facing companies also took a hit, with discretionaries and staples down 0.8 per cent and 0.9 per cent respectively.
In company news, Treasury Wine Estates tumbled more than 14 per cent after the Penfolds owner scrapped guidance due to tough trading conditions.
The Australian dollar is buying 65.24 US cents, down from 65.65 on Friday at 5pm.
Several major companies will hold annual general meetings this week, including Telstra, CBA, Origin Energy and Stockland.
On the macroeconomic front, the Reserve Bank will release its September meeting minutes on Tuesday and ABS labour force data will follow on Wednesday.
ON THE ASX:
The S&P/ASX200 lost 75.5 points, or 0.84 per cent, to 8,882.8
The broader All Ordinaries dropped 81 points, or 0.87 per cent, to 9,183.3
The NZX 50 Lost -11.04 points (-0.08%) to 13340.88
Companies Holding Annual General Meeting (ASX 300):
Aussie Broadband Limited
Overseas Market Report
[Morningstar with Dow Jones]:
U.S. stocks ended higher. The DJIA added 1.3% to 46,067.58, the S&P 500 gained 1.6% to 6,654.72 and the Nasdaq climbed 2.2% to 22,694.61.
Among S&P 500 companies, the top three gainers were NVIDIA Corp NVDA surging 2.82%, Amazon.com Inc AMZN jumped 1.68%, and Apple Inc AAPL lifted 0.97%.
The biggest decliners were NVIDIA Corp NVDA which dropped 2.82%, Amazon.com Inc AMZN fell 1.68%, and Apple Inc AAPL lost 0.97%.
Asia
Chinese shares closed lower. The benchmark Shanghai Composite Index declined 0.2% to 3,889.50 and the Shenzhen Composite Index fell 0.7% to 2,487.22.
Hong Kong shares ended lower. The benchmark Hang Seng Index declined 1.5% to 25,889.48.
Japanese shares ended lower. The Nikkei Stock Average fell 1% to 48,088.80.
India shares ended lower. The BSE SENSEX slipped 0.2% to 82,327.05.
Europe
Stocks in the U.K. finished higher. The FTSE 100 Index gained 0.2% to 9,442.87. In Europe, shares closed higher. The Germany's DAX lifted 0.6% to 24,387.93, and the France's CAC 40 rose 0.2% to 7,934.26
