New Zealand Shares Head for Third Weekly Drop

New Zealand stocks slipped 51 points, or 0.4%, to 13,000 in early Friday trade, tracking Wall Street’s losses Thursday as elevated oil prices and Middle East tensions weighed on sentiment and clouded prospects for rate cuts. The NZX 50 hit its lowest level since early September, pointing to a third weekly fall of 1.3% so far, after weak Q4 GDP underscored fading economic momentum amid high rates and cost pressures. Meanwhile, February trade data showed that imports in New Zealand surged 12% yoy on stronger demand from China, the EU, the US, and South Korea, while exports rose 0.4%, due to weaker sales to China and Japan. Sector losses in non-energy minerals, industrial services, and healthcare offset gains in consumer durables, commercial services, and logistics. Fletcher Building (-1.2%), Sanford (-1.1%), Turners Automotive (-1.0%), and Spark NZ (-0.9%) led declines. Traders now await the mainland’s monthly lending rate review later today after nine straight months at record lows.

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.