New Zealand Stocks Under Pressure as Global, Local Sentiment Weakens

New Zealand shares fell sharply on Monday, with the NZX 50 dropping 173 points, or 1.3%, to 12,763 in early trade, extending losses from the prior session. The decline tracked weakness in U.S. futures as concerns mounted that the economic fallout from the Iran war, now in its fifth week, may prove more prolonged than expected. Local sentiment was further dented by the latest data showing consumer confidence slid to a 17-month low in March, while business confidence figures are due later this week after falling to a four-month low in February. Investors also await March PMI readings in top trading partner China, both official and private, adding to caution given its role as New Zealand’s top trading partner. All sectors in the NZX 50 traded lower, weighed down by consumers, manufacturing, healthcare, and non-energy minerals. Notable laggards included Seeka Ltd. (-3.2%), Skellerup Holdings (-2.6%), Freightways Group (-2.3%), and Infratil Ltd. (-1.8%).

The NZX 50 fell 42 points, or 0.3%, to close at 12,935 on Friday, ending a two-day gain as logistics, consumer durables, and transport stocks slumped. Sentiment was hit by escalating Middle East tensions after U.S. President Trump warned Iran to strike a deal or face continued military pressure, even suggesting control of Iran’s oil was an option. For the week, the index posted its fourth straight decline, down 0.4%, weighed by fresh data showing New Zealand’s consumer confidence slid to a 17-month low in March amid geopolitical concerns. Meantime, the Reserve Bank cautioned that the Iran war could stoke inflation and weaken domestic growth momentum. Still, losses were partly offset by a 15.2% surge in industrial profits in top trading partner China during the first two months of 2026, the strongest start since 2018, excluding the pandemic spike in 2021. Notable laggards included Gentrack Group (-5.1%), Fonterra Co-op (-4.5%), Mainfreight (-4.4%), and Property for Industry (-2.6%).

New Zealand stocks fell 76 points, or 0.6%, to 12,914 in Friday morning trade, snapping two sessions of gains after Wall Street slumped Thursday. Sentiment weakened after U.S. President Trump said Washington was uncertain about pursuing a peace deal with Iran. Fed Governor Lisa Cook said Thursday the war in Iran has tilted the central bank’s dual-mandate risks toward inflation. Locally, consumer confidence hit a 17-month low in March, due to concerns over Middle East tensions. Investors also turned cautious ahead of China’s January–March industrial profits release later today and PMI data next week. Most sectors retreated, led by consumer durables, non-durables, non-energy minerals, and financials. Fonterra Co-op sank 5.3%, followed by Tourism Holdings (-2.3%), Freightways (-2.2%), and Auckland Intl. Airport (-1.6%). In contrast, PGG Wrightson (1.8%), Seeka Ltd. (1.4%), and T&G Global (1.2%) logged gains. Weekly, the NZX 50 is tracking a fourth straight decline, down about 0.6% so far.