MARKET WRAP: NZ shares rise amid trade wars and GDT slump

New Zealand shares were in the green today despite global stocks heading in the opposite direction as President Donald Trump’s trade war against China intensified.

The S&P NZX50 index rose 42 points to 8905, on turnover of $148 million.

Fat Prophets head of research Greg Smith says the New Zealand market took Mr Trump’s threats “in its stride.” However, the talks did influence average prices at Fonterra’s latest GlobalDairyTrade auction, which fell 1.2% to $US3481 a tonne.

Benchmark whole milk powder, which made up half the volume sold, fell 1.0% to $US3189/t, compared with a 1.1% fall in the previous auction. But that didn’t affect New Zealand’s star performer A2 Milk. Its shares gained 2% to $11.74.

A2’s supplier Synlait Milk also avoided a fall in its share price, gaining 0.85% to $10.74. The company recently announced a new $250 million Pokeno-based plant which it says will be commissioned in time for the 2019/20 season.

Manuka honey producer Comvita today said it has bought a $9 million or 20% share in Uruguay-based Apiter, the largest South American producer of propolis. The share price was unchanged at $5.74. “2018 has certainly been a rough year for Comvita investors,” Mr Smith says.

Pushpay shares gained 1.21% to $4.18 after the NZX and ASX-listed mobile payments company announced late on Monday afternoon co-founder Eliot Crowther was exiting the company, and it would no longer list on a US exchange this year.

Mr Smith says investors are still digesting the implications of Mr Eliot’s exit, but remain encouraged by the growth story.

Moa shares rose 8.89% to 49c. The craft beer company recently announced it is raising cash from directors before opening a retail offer. Mr Smith says due to the interests of the Business Bakery and its recent sale of Trilogy, a takeover is always on the cards.

It was a familiar story for Steel & Tube, its share price has been tumbling of late. Today its shares fell 5.49% to $1.55. “We are in for a lengthy period of consolidation and trust building,” Mr Smith says.

Sky TV might have recovered from its lows of March, but today its shares fell 4.51% to $2.33.

“[Sky] made some pricing and bundling changes, but I think it is going to need to do more, especially given some of the content they’ve lost and are about to lose, and the disruptive forces they are facing on a number of fronts.”

Pacific Edge shares fell 4% to 26c after a mixed profit result back in May. NZX controlled Superlife and Smartshares cut their substantial shareholdings in the company early in June.

Tomorrow investors will be keeping a close eye on New Zealand’s first-quarter GDP and Restaurant Brands, NZME and Z Energy will all hold annual meetings.

Looking further ahead, Mr Smith says investors will be interested to see how the trade war plays out and whether it’s all part of a “master negotiating move” on behalf of the Trump administration.