NZX50 bounces back as Trump eases up on Greenland talk
New Zealand’s S&P/NZX 50 index joined a global rally as US President Donald Trump cooled his tone on Greenland, ruling out using force in his bid to add the Danish territory to the world’s biggest economy.
Thursday, January 22nd 2026, 6:38PM
by Paul McBeth
The a2 Milk Co led the benchmark higher and Fisher & Paykel Healthcare advanced as fears about international trade subsided, while power companies were broadly stronger after Genesis Energy raised its earnings guidance and Contact Energy’s latest operating metrics showed increased hydro storage.
Fletcher Building gained after Real Estate Institute figures showed the housing market remained sluggish, while Statistics New Zealand data reported net immigration was still cool in November, even as the outflow of Kiwis slowed down.
And the kiwi dollar dropped against its Australian counterpart after stronger than expected jobs growth across the Tasman stoked expectations for the Reserve Bank of Australia to start hiking the cash rate as early as next month.
Turnaround
The NZX50 rose 139.7 points, or 1%, to 13,556.87, with 35 stocks gaining, 13 falling and two unchanged. Turnover across the main board was $191.9 million, with Ebos Group accounting for $76.1 million as it again came in for some heavy trading.
The healthcare products maker rose 1.7% to $26.45, with another large trade making up the bulk of its turnover, as almost 2.8 million shares changed hands at $26 each, or $72.4 million. So far this week $226.9 million of stock has changed hands in a handful of trades.
New Zealand’s stock exchange joined a global rally after US President Donald Trump eased back his rhetoric in seeking to acquire Greenland, telling the World Economic Forum in Davos that he won’t use force, but wants immediate negotiations and that his support for NATO is wavering.
The a2 Milk Co led the NZX50 higher, climbing 4.1% to $9.94, while Fisher & Paykel Healthcare gained 0.9% to $38.73 and logistics group Mainfreight increased 0.5% to $68.
“New Zealand’s having a good day on the back of the positive evening in the US after the various Davos speeches and the tempering of tariff talk and trade wars, or actual wars,” said Grant Davies, an investment adviser at Hamilton Hindin Greene. “Sanity may be prevailing, at least in the short term.”
Markets across Asia were broadly stronger, with Australia’s S&P/ASX 200 index up 0.7% in late trading, while Japan’s Nikkei 225 index jumped 2% and South Korea’s Kospi climbed 1.3% to a record.
Rising rate expectations
Australia’s stock market tempered its gains after Bureau of Statistics figures showed the economy added 65,000 jobs last month, more than the 27,000 and the unemployment rate fell to 4.1%, fuelling expectations the Reserve Bank of Australia might raise the target cash rate as early as next month.
The kiwi dollar fell to 86.11 Australian cents at 5pm in Auckland from 86.63 cents yesterday, and rose 56.61 US cents from 56.30 cents.
Fletcher Building was among the leaders on the NZX, climbing 2.9% to $3.90 after REINZ figures showed the house price index dipped 0.4% in December from a year earlier, while annual sales growth slowed to a 8.1% pace.
Meanwhile, Stats NZ figures showed net migration remained cool in November, although the outflow of New Zealand citizens slowed down.
Travel and tourism companies gained after Stats NZ’s data showed November visitor numbers rose 0.8%, with Tourism Holdings up 1.9% at $2.65, Auckland International Airport gaining 1.2% to $8.36 and Air New Zealand advancing 0.9% to 58 cents. SkyCity Entertainment Group increased 0.5% to 96.5 cents.
Power companies were broadly stronger after Genesis Energy raised its earnings guidance and Contact Energy’s December update showed increased hydro storage. Genesis rose 1.7% to $2.45 and Contact gained 1.6% to $9.35, while Meridian Energy advanced 2.5% to $5.69. Mercury NZ fell 0.8% to $6.42.
Retailers were mixed after Stats NZ figures showed spending on credit and debit cards fell in December. KMD Brands rose 1.9% to 27.5 cents and Briscoe Group gained 0.8% to $5.16, while Hallenstein Glasson Holdings fell 0.2% to $9.70.
Vista Group International posted the biggest decline on the NZX50, falling 4.6% to $2.10. Streaming giant Netflix beat Wall Street’s earnings expectations overnight, having switched to an all-cash bid for Warner Bros Discovery’s studios and streaming business earlier this week.
Among other stocks to decline, Gentrack fell 2.7% to $8 and Scales Corp dropped 1.9% to $5.65.
Paul is a staff writer for Good Returns based in Wellington.
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