NZX 50 Pares Early Losses

The NZX 50 fell 66 points, or 0.5%, to close at 13,657 on Monday, halting gains in the prior two sessions, as plunging U.S. futures and escalating Middle East tensions curbed risk appetite. The conflict showed little sign of easing, with U.S. and Israeli leaders vowing continued strikes on Iran while Tehran pledged retaliation. Traders also positioned cautiously ahead of PMI readings later this week in China, New Zealand's largest trading partner, amid concerns the Lunar New Year holiday may have slowed factory and services activity. Early losses were trimmed by strength in logistics and consumer services, though weakness in healthcare, financials, and non-energy minerals weighed on the index. Meanwhile, optimism sustained that monetary policy in New Zealand will remain accommodative, as signaled by the central bank recently. Notable laggards included Tourism Holdings (-9.6%), Napier Port Holdings (-4.2%), Briscoe Group (-4.2%), Ryman Healthcare (-3.6%), and Gentrack Group (-3.6%).

New Zealand stocks tumbled 177 points, or 1.3%, to 13,546 in Monday morning trade, snapping two sessions of gains as geopolitical tensions pressured sentiment. Weekend developments included U.S. and Israeli strikes on Iran, the reported death of Supreme Leader Khamenei, Iran’s retaliation against Gulf states, and the closure of the Strait of Hormuz. Traders also turned cautious ahead of PMI readings in top trading partner China later this week, with concerns building that the Lunar New Year holiday could dampen factory and services activity. Locally, January building permits are due after December’s sharp six-month drop. Still, losses were capped by optimism that monetary policy in New Zealand will stay accommodative, as signaled by the central bank. Nearly all sectors weakened, weighed by healthcare, energy minerals, and transport. Among single stocks, Ryman Healthcare slid 2.8%, followed by Genesis Energy (-2.6%), A2 Milk Co. (-2.4%), and Fletcher Building (-2.0%).

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%).