NZX 50 Reverses Morning Loss, Ends February With Solid Gains

The NZX 50 rose 52 points, or 0.4%, to close at 13,723 on Friday, reversing early weakness and marking its highest finish in six weeks, driven by strength in tech services, logistics, and retail trade. The benchmark gained for a second straight session as traders shrugged off a sharp drop in U.S. futures after Wall Street’s S&P 500 and Nasdaq fell Thursday despite Nvidia’s strong earnings results. Local stocks also logged a second consecutive weekly advance and a solid monthly gain of 2.2%, supported by an indication that the Reserve Bank will maintain a dovish stance amid a manageable inflation outlook and improving economic output after years of stagnation. In top trading partner China, PMI readings for February are due next week, with local media noting a steady rise in consumption during the Spring Festival holiday. Top performers included T&G Global (4.3%), Hallenstein Glasson (3.4%), Millennium & Copthorne Hotels (3.0%), and Seeka Ltd. (2.4%).

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.