Shane Solly, portfolio manager with Harbour Asset Management, said war clouds were back on the horizon and markets had pulled back from the optimism and enthusiasm they had shown over a potential Middle East agreement.
“There’s been some tit for tat between the US and Iran over attacks on ships, and markets are now wondering how, when and what does an off-ramp (to end the war) look like,” Solly said.
“The local market is in a void before the latest reporting season later this month, and is nervous about the financial results. Anything better than a cautious outlook from the companies would be well received by the market.
”The economic recovery has been pushed out, and this will be a test for the cyclical companies on the local market.”
Solly said the Australian market was under selling pressure, dragged down by the real estate and financial stocks. The dual-listed Westpac declined $2.254 or 4.74% to $45.30 in New Zealand.
The S&P/ASX 200 Index had fallen 1.44% to 8,749.90 points at 5.55pm NZ time.
On Wall Street, the Dow Jones Industrial Average decreased 0.63% to 49,596.97; the S&P 500 was down 0.38% to 7337.11; and the Nasdaq Composite eased 0.13% to 25,806.2.
Rocket Lab increased 4.34% to US$81.99 (NZ$137.86) in after-hours trading after reporting record quarterly revenue of US$200m, up 63% on the first quarter last year, and a backlog of more than 70 contracted missions worth US$2.2 billion. Rocket Lab posted a net loss of US$45m.
Local stocks
At home, Meridian Energy decreased 19c or 3.19% to $5.76; Ebos Group was down 36c to $21.39; a2 Milk declined 17c or 2.09% to $7.98; Port of Tauranga shed 13c to $8.32; and Vital Healthcare Property Trust eased 4.5c or 2.37% to $1.85.
Infratil was down 10c to $15.04 after its strong run, and market leader Fisher & Paykel Healthcare decreased 30c to $35.50.
Gentrack recovered 15c, or 3.8%, to $4.10, with Sydney-based Wilson Asset Management Group giving notice that it was no longer a substantial shareholder.
Fletcher Building was down 9c or 3.09% to $2.82 after announcing it has a conditional agreement to sell its Laminex AU property in Melbourne to Forza Capital for A$53.8m (NZ$65.35m).
The sale is expected to be completed by the end of June, and the Laminex business will continue to occupy the site for at least three years. Fletcher expects to record a sales gain of A$14m in its operating earnings (ebit) for the 2026 financial year.
Skellerup increased 14c or 2.35% to a four-year high of $6.09; SkyTV was up 10c or 3.21% to $3.22; Synlait rose 3c or 7.14% to 45c; Vista Group added 4c or 1.92% to $2.12; and Tourism Holdings collected 4c or 1.94% to $2.10.
Turners Automotive regained most of the fall of the day before after increasing 21c or 2.36% to $9.11, and 2 Cheap Cars was up a further 2c or 3.23% to 64c.
In the retirement village sector, Summerset was up 8c to 7.92; Ryman Healthcare decreased 2c to $2.23; and Promisia Healthcare increased 2c or 4.35% to 48c.
Promisia Healthcare reported the valuation of its five retirement villages and care facilities increased 17.1% to $107.2m at the end of March, with each of its sites increasing in value by at least 10%.
Summerset has told the market that sales contracting levels have remained consistent since before the Middle East crisis began. However, the mix between new and resales shifted slightly in favour of new sales.
Broker Forsyth Barr has lowered its earnings estimates for Summerset to incorporate a more conservative build rate and softer demand backdrop for the 2026 financial year, but sees this as largely priced in, given the 30% decline in its share price this year.
Manuka honey supplier Comvita, up 3.5c or 5.07% to 72.5c, has achieved its minimum capital raise amount of $25m after 44% of shareholders took up the rights offer, totalling $13.2m, and Singapore-listed Fraser & Neave topped it up with its subscription for a 19.99% shareholding.
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