NZX 50 Slips 5.9% in March

The NZX 50 climbed 163 points, or 1.3%, to close at 12,912 on Tuesday, reversing morning weakness and snapping a two-session decline as U.S. futures rallied on reports President Trump may end the war in Iran despite continued disruption in the Strait of Hormuz. Sentiment was further lifted by a rebound in private sector activity in top trading partner China, with manufacturing output recovering post–Spring Festival and services activity regaining momentum. Healthcare, financials, and logistics led the gains, though weakness in commercial services and consumer durables capped the upside. Standouts included Turners Automotive (2.7%), Hallenstein Glasson (2.2%), and Fisher & Paykel Healthcare (2.1%). However, local markets fell 5.9% in March, reversing prior gains, as Wellington warned inflation could breach the RBNZ’s 1–3% target if geopolitical risks persist. Business confidence also slid to a near two-year low, reflecting caution over potential fallout from Middle East shocks.

New Zealand equities slipped 53 points, or 0.4%, to 12,695 in Tuesday morning’s trade, marking a third straight decline after Wall Street ended mostly lower Monday in a holiday-shortened week. Sentiment weakened as surging oil prices and escalating Middle East tensions overshadowed tentative diplomatic signals from Washington. Locally, Finance Minister Nicola Willis cautioned inflation could climb “much higher” this year and stay outside the RBNZ’s 1%–3% target if geopolitical risks persist. Investors also awaited March business mood data after February hit a four-month low, while focus also turned to top trading partner China, with official PMI due later today. Consumer durables, energy minerals, and healthcare weighed on the NZX 50, partly offset by modest tech gains. Early laggards included PGG Wrightson (-1.8%), Ryman Healthcare (-1.5%), Summerset Group (-1.2%), and Channel Infrastructure (-1.0%). For March, the index is tracking a sharp 7.5% monthly loss, erasing February’s gains.

The NZX 50 plunged 186 points, or 1.4%, to end at 12,749 on Monday, continuing prior-session losses as weakness spread across most sectors, notably healthcare, non-energy minerals, logistics, consumer durables, and financials. Risk aversion intensified as the U.S.-Israeli war on Iran entered its fifth week, widening across the Middle East and fueling concerns over inflationary pressures and the prospect of a global recession. Caution also mounted ahead of New Zealand’s March business sentiment data due Tuesday, after February hit a four-month low. In the main trading partner China, March PMI readings loom amid persistent demand concerns. Meanwhile, Australia's inflation risks intensify on LNG supply issues in the northwest and transport-sector price hikes. Leading decliners in local markets included Fletcher Building (-5.1%), Ryman Healthcare (-4.2%), Napier Port Holdings (-3.4%), Summerset Group (-3.2%), and Delegat Group (-3.0%).