New Zealand stock market continues to recover

After a tumultuous April, the New Zealand share market has seen a continuation of positive momentum with the S&P/NZX 50 index showing a 0.76% increase to reach 12,421.250 points on Monday. This marks the fourth consecutive day of gains, putting behind the losses experienced on what was termed as “Liberation Day.”

Market experts attribute this newfound stability to a general sense of relief prevailing in international markets following the resolution of trade tensions between the United States and China. Peter Sigley, the director of institutional sales at Forsyth Barr, noted that the market is recovering from the turbulence caused by reciprocal tariffs announced by US President Donald Trump. This has led to a gradual calming of nerves among investors as they witness a positive upswing in various indices.

Sigley highlighted that blue-chip stocks in New Zealand, including Auckland International Airport and Infratil, have gained significantly as investor confidence returns. Auckland International Airport saw an increase of 2.13% to $7.90, while Infratil recorded a rise of 0.81% to $11.17. Precinct Properties also experienced a notable uptick of 5.50% on high trading volumes to $1.15.

Additionally, companies such as Mainfreight and Ryman Healthcare have shown signs of recovery. Mainfreight climbed 2.40% to $63.50, buoyed by positive announcements regarding its expected full-year profits and revenue figures. Similarly, Ryman Healthcare saw a turnaround, with its stock price rising by 2.56% to $2.40 after hitting a low of $2.21 last week amidst a significant sell-off by Australian investment fund manager Cooper Investors.

While most companies experienced gains, Westpac Banking was an outlier, sliding 3.09% due to its half-year results falling short of expectations. Despite this, the overall market sentiment remains positive, with Smartpay emerging as a standout performer. The eftpos terminal and payments company saw its shares surge by 18.34% to $1.00 after divulging an increased buyout offer, signaling a potential exit from the market.

Looking ahead, Australian markets appeared primed for a slight contraction, with the S&P/ASX 200 down 0.82% at the close of trading. Despite recent gains, the NZX 50 remains down by nearly 5% for the year, highlighting the ongoing volatility and resilience of the market amidst global economic uncertainties.