NZX50 Slumps to Over 4-Month Low

New Zealand’s benchmark S&P/NZX 50 fell 2.5% to close at 13,198 on Friday, retreating from a three-week high and hitting an over four-month low as negative cues from Wall Street dampened investor sentiment. US equities tumbled overnight, led by broad-based sell-off in technology and AI-related stocks. Market sentiment was further pressured by uncertainty over the Fed’s rate-cut outlook, with investors also awaiting the US inflation report due later in the day. Adding to risk-off sentiment, local data showed visitor arrivals growth eased to 7% year-on-year from 8.2% in November, while Q1 business inflation hit a two-year high of 2.37%, and the business PMI eased to 55.2 from December’s three-year high of 56.1, though it remained in solid expansionary territory. Most sectors closed in the red, led by heavyweight healthcare, industrials, and utilities, while notable decliners included Fisher & Paykel (-7.1%), Gentrack Group (-5.8%), and EBOS Group (-3.5%).

The NZX 50 fell 103 points, or 0.8%, to 13,428 in early Friday trade, swinging from modest gains in the prior session and setting up a weekly drop following steep losses on Wall Street Thursday on persistent AI concerns. Also, traders booked profits after local markets hit a three-week high the day before. Further, caution emerged ahead of next week’s key data or event in New Zealand, including food inflation, trade balance, and the Reserve Bank’s first rate decision of 2026. January’s manufacturing PMI eased from December’s three-year high, though it stayed at solid levels. Selling pressure hit most sectors, with consumer durables, non-energy minerals, and healthcare leading falls. Still, losses were offset by upbeat tourism data in the Pacific nation, as December tourist arrivals rose 7.0% yoy. In top trading partner China, bets on fresh stimulus grew after weak CPI and PPI data. Among notable laggards were Gentrack Group (-2.8%), Mainfreight (-1.8%), and Fletcher Building (-1.6%).

New Zealand’s benchmark S&P/NZX 50 rose 0.2% to close at 13,531 on Thursday, hitting a three-week high, as gains were led by index-heavy financial stocks. Financials climbed 5.7%, with ANZ Group Holdings surging 9% after reporting first-quarter cash profits ahead of expectations. The result suggests CEO Nuno Matos, who took over in May 2025, is beginning to deliver early gains from his cost-cutting and restructuring strategy. Other sectors finishing in the green included consumer durables, energy minerals, and industrials. Among index heavyweights, Meridian Energy (+1.4%), Contact Energy (+1.1%), Auckland Intl Airport (+0.8%), A2 Milk (+0.5%), Infratil (+0.2%), and Fisher & Paykel (+0.1%) finished higher. Market participants are now awaiting Friday’s local data releases, which include Business PMI, visitor arrivals, and business inflation expectations.