NZX 50 Finishes Little Changed

New Zealand stocks fell slightly by 3 points, or 0.02%, to close at 13,017 on Tuesday, reversing early gains and extending losses for a third straight session. The NZX 50 remained at its lowest level since April 2, as hopes of further US–Iran peace talks failed to lift market sentiment amid US President Trump’s threats to destroy Iranian ships in the Strait of Hormuz. Monday’s data continued to weigh on sentiment, as the country’s services sector shrank the most in 10 months. Chinese trade data also added pressure, given that China is New Zealand’s top trading partner, with exports growing far less than expected. Most sectors traded in the red, including consumer staples, communication services, financials, and technology. The worst performers included A2 Milk (-2.8%), amid expectations of profit forecast cuts linked to supply chain disruptions, Westpac Banking Corp. (-2.3%), Gentrack Group (-2.1%), Chorus (-2.1%), Mainfreight (-0.8%), and Infratil (-0.8%).

The NZX 50 climbed 70 points, or 0.5%, to 13,090 in Tuesday morning deals, halting losses from the previous two sessions and tracking a rise on Wall Street overnight amid hopes of resumed negotiations between the US and Iran, although US President Trump threatened to destroy Iranian ships in the Strait of Hormuz. The broader index rose from its lowest level since April 2, reached a day earlier. However, traders are awaiting the release of Chinese trade balance data later today, as China is New Zealand’s top trading partner, and are anticipating a slew of data from China on Thursday, including Q1 GDP. Healthcare led the gains, followed by consumer staples, real estate, and industrials. Among early gainers were Ryman Healthcare (3.0%), Ebos Group (2.0%), Fletcher Building (2.0%), Freightways (1.4%), Chorus (0.9%), AFT Pharmaceuticals (0.8%), Fisher & Paykel Healthcare (0.5%), and ANZ Group (0.4%).

The NZX 50 index closed at 13,020 on Monday, falling 161 points or 1.2%. This decline, which eased losses from morning trading, followed the trend of the previous session and marked the index's lowest level since April 2. The drop was influenced by a dip in US futures after US President Trump's announcement that military action would prevent ships from Iranian ports after failed peace talks. Additionally, traders were waiting for important data releases from China, New Zealand's top trading partner, such as Q1 GDP and trade balance numbers later in the week. New Zealand's private sector experienced its sharpest contraction since August, with the services sector showing the most significant decline in 10 months. Consumer staples led the fall, followed by healthcare and industrials. A2 Milk plunged 12.6% due to expected profit forecast reductions linked to supply chain disruptions. Other notable decliners included Summerset Group (-2.4%), Fisher & Paykel (-2.3%), and Ebos Group (-1.3%).