by Paul McBeth
New Zealand’s S&P/NZX 50 index fell for a third day as typically light summer trading, with the local market missing a broadly stronger day across Asia and ignoring recovering business confidence in the New Zealand Institute of Economic Research’s latest quarterly survey.
Broker updates hung over both ends of the benchmark, with Ebos Group among those weighing on the NZX50 while Port of Tauranga posted the day’s biggest gain after getting a boost to its target price.
The kiwi dollar jumped against the yen after reports that Japan’s prime minister Sanae Takaichi plans to hold a snap election in an effort to boost her parliamentary majority to boost her expansionary fiscal plans.
Meanwhile, local miners such as Manuka Resources, New Talisman Gold Mines and Santana Minerals joined a global rally, following the surge in gold prices as investors flock to relatively safe assets after US President Donald Trump’s administration upped the ante on the Federal Reserve with the threat of a criminal indictment.
Three in a row
The NZX50 fell 27.24 points, or 0.2%, to 13,656.06, with 28 stocks declining, 18 gaining, and four unchanged. Turnover across the main board was $104.2 million, of which Fisher & Paykel Healthcare accounted for $17.8 million as it advanced 1.1% to $38.90.
The local bourse missed a broad rally across Asia, with Japan’s Nikkei 225 surging 3.3% in late trading amid reports prime minister Sanae Takaichi is planning a snap election to chase a bigger parliamentary majority and expand her fiscal plans. The kiwi dollar jumped to 91.75 yen from 90.84 yen yesterday.
The kiwi dollar extended its gains against the greenback after the NZIER’s quarterly survey of business opinion showed firms are increasingly upbeat about the outlook for 2026, and have raised their plans to invest in the coming year. The New Zealand dollar traded at 57.77 US cents at 5pm in Auckland from 57.67 cents at 7am and 57.44 cents yesterday.
“After a tougher than expected 2025, the NZ economy looks to have started 2026 with considerable vigour,” ASB Bank senior economist Mark Smith said in a note. “The issue will be whether the improved sentiment will be sustained and whether it will translate into strengthening investment, activity, and hiring as 2026 unfolds.”
Heavyweights dragged down the local market, with Auckland International Airport slipping 2.3% to $8.40 and Ebos Group declining 2.8% to $26.67, while the electricity generator-retailers were broadly weaker after energy minister Simon Watts outlined plans to beef up the Electricity Authority’s ability to impose penalties.
Lines company Vector fell 3.4% to $4.77, while Mercury NZ declined 1.5% to $6.49, Genesis Energy decreased 1.2% to $2.42 and Contact Energy slipped 0.5% to $9.18.
Sanford led the NZX50 lower, falling 3.7% to $7.56 as it came off a near-six-year high.
Ports of call
Meanwhile, Port of Tauranga posted the biggest gain on the day, up 2.6% to $7.95 after Forsyth Barr analysts raised their target price on the transport hub by 70 cents to $8.70 and kept their ‘outperform’ rating on the stock.
Matt Goodson, managing director at Salt Funds Management, said the local session was typical of the summer period, where movements can be exaggerated by the light volumes, and noting the broker reports on Ebos and Port of Tauranga.
SkyCity Entertainment Group was the most heavily traded stock on the day, with 3.6 million shares changing hands as the casino operator rose 1.6% to 94.5 cents.
Fletcher Building dipped 0.5% to $3.78 after the building materials firm said light construction product volumes grew slowly in the December quarter, while heavy material volumes shrank.
Napier Port increased 1.5% to $3.95 after reporting increased container and bulk cargo volumes in the December quarter.
Outside the benchmark index, mining stocks followed gold prices higher, with Manuka Resources up 7.5% at 20 cents, taking its gain so far this month to 80 cents. New Talisman Gold Mines increased 4.6% to 2.3 cents, while Santana Minerals gained 3.7% to $1.256 and Minerals Exploration advanced 2% to 25 cents.
Mining stocks buoyed Australia’s S&P/ASX 200 index, with the benchmark up 0.9% in late trading.
Paul is a staff writer for Good Returns based in Wellington.
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