Broad Losses Drag NZX 50 to One-Month Low

The NZX 50 slumped 264 points, or 2.0%, to end at 13,052 on Thursday, snapping a two-session rebound and hitting a one-month low amid losses in almost all sectors. Sentiment weakened after data showed New Zealand’s economy lost momentum in Q4 2025, with GDP rising just 0.2% qoq, below the 0.4% consensus and sharply slower than Q3’s 1.1% gain. Meanwhile, the annual growth stood at 1.3%, missing estimates of 1.7%, reflecting the impact of elevated rates and cost pressures. Middle East tensions also weighed, as Brent crude held around USD 100 per barrel after strikes on key energy infrastructure stoked fears of a supply squeeze. Leading decliners included Spark NZ (-5.3%), Gentrack Group (-5.1%), T&G Global (-4.5%), and Summerset Group (-4.3%). Investors now await New Zealand's trade data for February due Friday, following a narrower January gap. A monthly fix on key lending rates in main trading partner China is also expected after the central bank held them at record lows in February.

New Zealand shares tumbled 180 points, or 1.4%, to 13,135 in Thursday morning’s trade, snapping a two-session of gains after fresh data showed the country's GDP grew 0.2% qoq, below forecasts of 0.4% and the central bank’s 0.5% estimate. Economists also warned that the oil-price shock will weigh on domestic activity, as New Zealand is a net oil importer, while intensifying inflation pressures. Sentiment also soured after Wall Street’s sharp drop Wednesday, triggered by Fed Chair Powell’s caution over the inflationary risks of surging oil prices amid Middle East tensions. At its March meeting, the Fed held rates steady, noting inflation was easing more slowly than hoped. Most sectors retreated, led by consumer durables, communications, and process industries. Key decliners included Spark NZ (-5.3%), T&G Global (-4.5%), Summerset Group (-3.4%), and Meridian Energy (-3.2%). Traders now await China’s monthly fixing on key lending rates, given its role as New Zealand’s top trading partner.

The NZX 50 climbed 133 points, or 1.0%, to finish at 13,316 on Wednesday, extending gains from the prior session amid stronger U.S. futures ahead of the Fed’s rate decision later today, along with its first 2026 economic projections. In China, New Zealand’s top trading partner, the PBoC will hold a monthly review of its key lending rates on Friday, after keeping them at record lows for nine consecutive months in February to support growth. Domestically, Q4 GDP data is due in the coming days, with local media suggesting New Zealand's economy is turning a corner, helped by the primary sector and tourism. However, the escalating Middle East conflict has altered the outlook, with rising prices and supply chain disruptions weighing on sentiment. Consumer durables, industrial services, and utilities led gains, while logistics, healthcare, and tech services lagged. Standout performers included Tourism Holdings (6.6%), Scales Corp (4.7%), Hallenstein Glasson (3.0%), and Genesis Energy (2.8%).