NZX 50 Reverses Early Gains to Close 0.4% Lower

The NZX 50 dropped 50 points, or 0.4%, to close at 13,446 on Monday, reversing its morning strength and erasing gains from the prior session, mainly weighed down by losses in energy, consumer discretionary, and technology stocks. The broader index retreated from its highest level since March 6, reached on Friday, with consumer staples rising 0.8% after jumping more than 5% in the morning session. The moderation came as A2 Milk rose 1.7%, slowing sharply from an over 11% surge in morning trading after the company received highly coveted regulatory approval from China to produce infant formula at Pokeno. However, easing oil prices helped limit the decline, supported by news that progress had been made in US-Iran peace deal talks. Among the biggest decliners were Gentrack Group (-4.9%), Channel Infrastructure (-2.2%), South Port NZ (-1.6%), Contact Energy (-1.4%), Mercury NZ (-1.4%), Henderson Far East Income (-1.1%), Hallenstein Glasson (-1.0%), and Mainfreight (-0.8%).

The NZX 50 climbed 54 points, or 0.4%, to 13,549 in Monday morning trade, extending gains from the prior session, mainly supported by advances in consumer staples, materials, and healthcare stocks. Consumer staples surged 5.6%, boosted by a jump in A2 Milk, which soared 11.1% after the company received highly coveted regulatory approval from China to produce infant formula at Pokeno. The broader index hit its highest level since March 4, extending its second weekly rise as last week's data continued to support sentiment. New Zealand's GDP growth accelerated to 0.8% qoq in Q1, while annual growth held steady at 1.5%. However, a decline in US futures capped the gains, as President Trump's threats to restart the war with Iran, even as Vice President JD Vance met with Iranian officials for the first talks under an interim peace deal, weighed on sentiment. Other early gainers included Gentrack Group (2.1%), AFT Pharmaceuticals (1.9%), F&C Investment Trust (1.7%), and Fisher & Paykel (0.9%).

The NZX 50 rose 132 points, or 1.0%, to close at 13,496 on Friday, erasing losses from the prior session, mainly buoyed by gains in consumer staples, consumer discretionary, utilities, and financials. The broader index hit its highest level since March 6, tracking a rally on Wall Street overnight as a US-Iran peace deal offset worries about a Fed rate hike this year. Thursday's data continued to fuel sentiment as New Zealand's GDP growth accelerated to 0.8% qoq in Q1, while annual growth held steady at 1.5%. However, the latest data capped gains, as New Zealand's trade surplus narrowed in May from the same month last year, with exports rising less than imports. A2 Milk surged 8.4% after UBS upgraded the company's shares to Buy from Neutral, citing valuation grounds. Other notable gainers included Hallenstein Glasson (3.0%), Ebos Group (1.9%), Infratil (1.8%), Colonial Motor (1.7%), and Contact Energy (1.6%). For the week, the index rose 2.2%, marking its second straight weekly gain.