Late selling drives NZ sharemarket down – Market close

T&G Global returned to profit in the first half of this year and is upbeat on future prospects. Photo / NZME

The New Zealand sharemarket ended its first day under a new US tariff regime weaker after late bout of selling wiped out earlier gains.

The S&P/NZX 50 Index ended 42.47 points (0.33%) lower at 12,844.63, with 25.22 million shares, worth $89.14 million, trading.

There were 72 rises and 52 falls on the main board.

As of today, US tariffs will raise the average US import duty to its highest in a century.

Craigs Investment Partners investment director Mark Lister said the market had mostly gained over the week.

“It’s been a good week and the markets seem to be taking the US tariffs in their stride as we head into the reporting season next week,” he said.

“We are confident that we’ll see an Official Cash Rate cut from the Reserve Bank [on August 20], which I think will be good for the market and the economy overall.

“We’ve managed to get through this week without any profit warnings, so that’s good,” Lister said.

Spark firmed 4c or 1.6% to $2.59 after a difficult period.

Lister said the telco appeared to be enjoying the beginnings of a recovery after two years in the investment wilderness.

“It’s still got a long way to go, but I think there is a general feeling among the analyst community that there might be a little bit of value there because it’s fallen as much as it has,” he said.

Also firming were KMD Brands, up 1c at 25c, and Sky TV, up 6c at $3.02.

Infratil dropped by 18c or 1.59% to $11.84.

The infrastructure investor earlier announced that it and the NZ Superannuation Fund had entered a binding agreement to sell their 100% interest in RetireAustralia to Invesco Real Estate, for A$845m ($925m).

As of March 31, the carrying value of Infratil’s investment in RetireAustralia was $404m, with the transaction expected to result in an accounting loss on sale of about $80m, the company said.

Market heavyweight Fisher & Paykel Healthcare, which has a 16% weighting on the S&P/NZX50 index, fell 31c to $36.69.

Retirement village operator Summerset dropped by 25c (2.25%) to $11.08.

Transport software specialist Eroad took back some of Thursday’s gains, which were on the back of New Zealand’s plan to introduce universal road user charges, the stock dropping 6c to $1.95.

In the second-tier stocks, major apple exporter T&G Global rallied by 15c (6.7%) to $2.40 after posting a turnaround in its first half to a $1.7m profit from a loss of $18.76m in the previous comparable period.

“As we head into the second half of the year, T&G is in a strong position to build on this momentum,” the company said.

“We’re confident in our ability to continue delivering improved financial performance.”

T&G’s majority owner, Germany’s BayWa, has put its stake up for review.

BayWa, which has interests ranging from food to construction and energy, first made its play in 2011 for what was then Turners and Growers, with the intention of a complete takeover.

T&G’s shares have gained 53% in the last 12 months.

With a 15% tariff on New Zealand exports to the US now in place, ASB Bank expects beef, dairy and wine exports to be the most heavily affected.

“We think beef is currently under the most risk, but there are opportunities to mitigate the hit,” the bank said.

Jamie Gray is an Auckland-based journalist, covering the financial markets and the primary sector. He joined the Herald in 2011.