US-China détente hopes send Mainfreight up 5%

Hopes that a meeting between Chinese and American officials in Switzerland would produce a détente buoyed markets to start the week.

Monday, May 12th 2025, 7:30PM

by BusinessDesk

The New Zealand benchmark index, the S&P/NZX 50, rose 0.57% to 12,676.75 points on Monday. Thirty-nine million shares changed hands, amounting to $100.7m in value traded.

United States stock futures were up after US Treasury Secretary Scott Bessent said the US had made “substantial progress” over the first two days of trade talks in Geneva.

At 5pm, S&P 500 futures were up 1.47% while futures of the tech-heavy Nasdaq Composite index had risen 1.97%.

Shane Solly, portfolio manager with Harbour Asset Management, said the world was still waiting for specifics but that early signals suggested the “chocolate in Switzerland is sweet”.

“Today is undoubtedly all about the Swiss discussions," he said.

“The market was not set for a good outcome; it was more about an icebreaker, but comments are more positive and suggesting they’re 'substantive', that’s a better outcome."

The NZX

Leading the way in Aotearoa was Mainfreight, which rose 5.11% to $66.00 on volumes amounting to over $5m in value traded.

After reaching its 52-week low of $55 in April, the logistics and transport company has had a strong 30 days, rising nearly 13%.

“I think today's gains may be people unwinding some of that discount, particularly on that trans-Pacific trade between China and the US,” Solly said.

The country's three listed retirement and aged care companies all gained with Ryman Healthcare, rising 1.65% to $2.46.

Oceania Healthcare gained 3.13% to 66 cents, and Summerset Group was up 2.23% to $11.45.

Solly said the sector has been "heavily penalised" for some short-term cyclical conditions and company resets.

“We still do need to see the residential property market continue to improve. That's not about prices per se, it's about activity. What we are seeing very clearly is [that] the number of sales is starting to pick up”

He added that Ryman and Oceania’s full-year results are coming up in the next two weeks.

Fisher & Paykel Healthcare was one of the 43 stocks that declined during the day, dropping off 2.09% to $35.20.

Solly said he was surprised Fisher & Paykel Healthcare was weaker, adding that some people may have interpreted President Donald Trump’s announcement to force pharmaceutical companies to reduce prices as bad news for the company.

“Our research suggests that it is unlikely, but you can't rule anything out.”

Energy

Manawa Energy equities continued their rally, rising 3.99% to $6.51 on Monday.

The stock skyrocketed last week after the Commerce Commission granted clearance for Contact Energy to acquire the company.

The other part of the equation, Contact, rose 3.83% to $9.50 and led the main board regarding value traded.

Compounding the gains associated with the deal being rubberstamped, Solly said the quarterly operating report Contact released in the morning was “good”.

“The whole electricity gentailer space has been under pressure with dry weather. We're just seeing signs that maybe we're getting a little bit more normal (or less bad) hydrology.”

Tags: Market Close