Profit-Taking Pulls NZX 50 Lower, Monthly Strength Intact

New Zealand shares edged down 21 points, or 0.2%, to 13,649 in early Friday trade, reversing the prior day’s strength after Wall Street closed mostly lower Thursday, with Nvidia’s drop weighing on chip stocks. Traders also booked profits after the NZX 50 hit a five-week high. At the same time, fresh data showed both business and consumer confidence retreated in February amid pockets of weakness in the domestic economy. Caution also stemmed from upcoming February PMI readings in China, New Zealand’s top trading partner. Healthcare and energy minerals led declines, partly offset by gains in tech services and retail. Notable laggards included Genesis Energy (-2.1%), Summerset Group (-1.3%), and Fisher & Paykel Healthcare (-0.5%). Despite the pullback, the market is tracking its second straight weekly gain, with monthly strength near 1.6% so far, boosted by central bank signals of an accommodative policy rate and inflation projected to return to target mid-band over the coming year.

New Zealand’s NZX 50 surged 145 points, or 1.1%, to close at a five-week high of 13,671 on Thursday, rebounding from a muted prior session. A strong lead from U.S. equities Wednesday, driven by a rally in tech stocks as AI concerns eased, boosted sentiment. Traders also looked ahead to major policy meetings next month in China, New Zealand’s largest trading partner. Meanwhile, optimism mounted that a potential U.S. tariff reset could benefit Beijing, with President Trump expected to visit Xi Jinping in early April. However, gains were tempered by local data showing business sentiment slipped to a four-month low in February, even as readings remained elevated. Caution also lingered ahead of China’s PMI releases next week. Nearly all sectors advanced, led by Gentrack Group (7.6%), Ryman Healthcare (5.1%), Summerset Group Holdings (4.2%), and Seeka Ltd. (4.2%). Investors now brace for New Zealand’s February consumer confidence data and January building permits, both set to be due Friday.

New Zealand stocks rose 74 points, or 0.6%, to 13,600 in Thursday morning trade, rebounding from a muted session the day before. The benchmark NZX 50 touched a five-week high, lifted by Wall Street’s tech-driven rally on Wednesday as concerns over AI disruption eased. Locally, the Reserve Bank is reportedly proposing nationwide access to free cash services, a move the banking lobby warns would raise costs across the sector and ultimately for all New Zealanders. Gains were capped, however, as U.S. President Trump cautioned countries against retreating from recent trade deals, threatening higher tariffs if they did. Industrial services, healthcare, and utilities led advances, while commercial services and producer manufacturing weighed on momentum. Early standouts included Sky Network TV (4.6%), Seeka Ltd. (1.4%), Meridian Energy (1.3%), and EBOS Group (1.1%). Traders now await January’s business and consumer confidence data for cues on economic health.