Trump induced nerves lead to slump. Photo / Getty Images
The New Zealand sharemarket, down nearly 1%, 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.
‘Fears’
At the weekend (NZ time), 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% to 22,204.43 points, the S&P 500 fell 2.71% to 6,552.51, and the Dow Jones Industrial Average was down 1.9% to 45,479.6.
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.” US stock futures turned around, and the markets were expected to rebound overnight.
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.
Across the Tasman, the S&P/ASX 200 Index had fallen 0.99% to 6,869.8 at 6 pm NZ time.
Local stocks
At home, 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 was starting a $201m 638-bed student accommodation in Queen St, Auckland, on top of the 964-bed development already under way 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.
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