Market Announcements
Market Summary
Higher-than-expected tariffs on New Zealand exports to the United States drove the sharemarket lower Friday, led by weakness in Fisher & Paykel Healthcare. The S&P/NZX50 Index ended 94.34 points, or 0.74%, down at 12,729.40, with 32 million shares, worth $108.1 million, trading. There were 86 decliners and 42 gainers on the main board. The imposition by the US of a 15% tariff on NZ goods, up from a previously advised 10%, took the market by surprise.
America is a key export destination for F&P Healthcare (FPH) – the market’s biggest stock – which has extensive manufacturing assets in NZ and Mexico. The US announcement drove FPH shares – which have a 16% weighting on the S&P/NZX50 – down by 80c or 2.17% to $36. Medical supplies distributor Ebos – after a strong run-up on speculation that it may soon join the ASX200 index – fell back by 92c (2.25%) at $39.98.
FPH could have fallen further, had it not been for its Australian-US competitor, Resmed, which occupies similar segments in the respiratory products market, reporting a strong annual result. Resmed said its net profit rose 37% to US$1.4 billion (NZ$2.4b) in the year to June 30, while revenue for the year increased 10% to US$5.1b. ASX-listed Resmed rallied by A77c to A$43.22 in late trading.
Meanwhile, tariff concerns weighed on Seafood exporter Sanford, which dropped 10c or 1.75% to $5.60. Elsewhere on the market Among the other leaders, Meridian fell 3.5c to $5.73, Spark gained 2.5c to $2.45, while Mainfreight regained some lost ground to end 30c higher at $59.50. SkyCity remained under pressure, losing 4c to finish at 98c.
Stats NZ’s labour market data is out on Wednesday. Kiwibank economists expect the data to show the labour market likely loosened further over the June quarter.
Source: Business Desk
Australian Market Report
Ahead of the local open SPI futures were 39 points lower at 8619.
- close [Morningstar with AAP]: The local share market has fallen even as Australia dodged being hit by higher tariffs the Trump administration said it was imposing on dozens of its trading partners.
The benchmark S&P/ASX200 index on Friday dropped 80.8 points, or 0.92 per cent, to 8,662.0, while the broader All Ordinaries fell 81.9 points, or 0.91 per cent, to 8,917.1.
The White House said tariffs on Australian exports would remain at the baseline rate of 10 per cent while imposing higher levies on more than 60 other countries including New Zealand, Fiji, Papua New Guinea and Canada.
Mexico was granted a 90-day tariff reprieve.
Moomoo dealing manager Paco Chow said the imposition of higher tariffs and more economic uncertainty worldwide was reigniting investor fear, with most markets and asset classes declining.
Traders were also awaiting the release of monthly US jobs figures known as the non-farm payroll report late on Friday, Australia time, and could influence whether the Federal Reserve cuts rates in September.
"Urgent tariff fears are compounding with worries we'll see fewer-than-expected US rate cuts and some US companies showing softer earnings," Mr Chow said.
For the week, the ASX200 was basically flat, dropping 4.9 points after a 90-point, 1.0 per cent loss the previous week.
AMP chief economist Shane Oliver said a strong performance in July, during which the ASX200 rose 2.35 per cent, had left valuations stretched.
A lot of good news had also been factored in, which leaves markets a bit vulnerable over the seasonally weaker months of August and September, Dr Oliver said.
Share markets were at risk of a correction over those months, but should provide reasonable returns through year-end, he said.
The Australian dollar had dropped to a two-month low against its strengthening US counterpart, buying 64.30 US cents near 5pm, from 64.73 US cents at a similar time on Thursday.
Ten of the ASX's 11 sectors finished lower, with utilities rising 0.7 per cent.
The technology sector was the biggest mover, dropping 2.4 per cent as Xero subtracted 3.5 per cent and WiseTech Global retreated 2.6 per cent.
In health care, ResMed rose 1.0 per cent to an all-time closing high of $42.88 after the CPAP devicemaker posted better-than-expected fourth-quarter earnings including 10 per cent revenue growth.
"Really, really excited to report these results," CEO Mick Farrell told AAP.
"It was a good performance across the board."
Elsewhere in the sector, 4D Medical soared 29.8 per cent to a six-week high of 30.5 cents after medical imaging giant Pro Medicus invested $10 million into its much smaller respiratory imaging peer.
In the heavyweight mining sector, Syrah Resources plunged 25.3 per cent to 27 cents after the graphite miner completed a $42 million capital raising at 26 cents a share.
The iron ore giants were mixed, with Fortescue rising 1.2 per cent to $17.98, Rio Tinto dropping 0.7 per cent to $110.90 and BHP edging 0.1 per cent lower at $39.22.
Rare earth miner Lynas rose 3.3 per cent and lithium miner Pilbara added 4.1 per cent.
In the financial sector, three of the big four banks finished in the red.
CBA fell 1.6 per cent to $175.06, NAB dipped 1.2 per cent to $38.44 and Westpac dropped 1.1 per cent to $33.45.
ANZ was the outlier, rising 0.5 per cent to $30.87.
ON THE ASX:
The benchmark S&P/ASX200 index on Friday dropped 80.8 points, or 0.92 per cent, to 8,662.0
The broader All Ordinaries fell 81.9 points, or 0.91 per cent, to 8,917.1
The NZX 50 Lost -19.02 points (-0.15%) to 12710.38
Overseas Market Report
[Morningstar with Dow Jones]:
U.S. stocks ended lower. The DJIA fell 1.2% to 43,588.58, the S&P 500 slipped 1.6% to 6,238.01 and the Nasdaq declined 2.2% to 20,650.13.
Among S&P 500 companies, the top three gainers were Monolithic Power Systems Inc MPWR surging 10.46%, Align Technology Inc ALGN jumped 5.82%, and First Solar Inc FSLR lifted 5.29%.
The biggest decliners were Eastman Chemical Co EMN which dropped 19.06%, Coinbase Global Inc COIN fell 16.75%, and Ingersoll Rand Inc IR lost 11.28%.
Asia
Chinese shares closed mixed. The benchmark Shanghai Composite Index slipped 0.4% to 3,559.95 and the Shenzhen Composite Index was unchanged at 2,175.49.
Hong Kong shares ended lower. The benchmark Hang Seng Index declined 1.1% to 24,507.81.
Japanese shares ended lower. The Nikkei Stock Average fell 0.7% to 40,799.60.
India shares ended lower. The BSE SENSEX dropped 0.7% to 80,599.91.
Europe
Stocks in the U.K. finished lower. The FTSE 100 Index declined 0.7% to 9,068.58. In Europe, shares closed lower. The Germany's DAX dropped 2.7% to 23,425.97, and the France's CAC 40 declined 2.9% to 7,546.16
