NZX50 surges as RBNZ cools expectations for a pre-election rate hike
Spark and Fletcher’s earnings left investors wanting more.
Wednesday, February 18th 2026, 6:59PM
by Paul McBeth
New Zealand’s S&P/NZX 50 index posted its biggest gain since May after the Reserve Bank kept the official cash rate at 2.25% while playing down the prospect of a hike before November’s general election, which pushed down swap rates and knocked the kiwi dollar below 60 US cents.
Exporters such as index heavyweights Fisher & Paykel Healthcare and Ebos Group paced gains on the benchmark as it snapped a three-day slide in a broad-based rally, joining the upbeat tone across Asia as the Lunar New Year keeps markets closed in China, Hong Kong, Singapore and South Korea.
Spark New Zealand and Fletcher Building got different responses to their respective earnings – both of which fell short of analysts’ expectations – with the telco on the red side of the ledger and the building materials firm on the green, while across the Tasman National Australia Bank’s December quarter trading update buoyed the S&P/ASX 200 index in late trading.
And Tower welcomed Naomi Ballantyne to the chair of the board after Michael Stiassny stepped down as a director after overseeing quite the reversal in the fortunes of the general insurer during his 12-year tenure.
Some rebound
The NZX50 jumped 215.4 points, or 1.7%, to 13,247.02 in its biggest one-day gain since May 1, and recovering from a five-month low. Within the index, 30 stocks gained, nine declined, and 11 were unchanged. Turnover across the main board was $137.4 million, of which Fisher & Paykel Healthcare accounted for $21.8 million as it climbed 3.1% to $36.80.
The medical devices maker was among exporters buoyed by the softer currency after the Reserve Bank kept the official cash rate at 2.25% as expected, and brought forward projected increases to the cash rate by less than what bond traders had been predicting.
“Even though we’ve seen some of economic green shoots – if you’ll forgive the cliché – things are quite patchy,” said Greg Smith, investment specialist at Generate Investment Management. “We might all be getting ahead of ourselves on the momentum of the recovery.”
The kiwi dollar fell to 59.99 US cents at 5pm in Auckland from 60.26 cents yesterday, and dropped to 84.86 Australian cents from 85.42 cents. Two-year swap rates dropped almost 10 basis points to 2.94%.
Exporters paced gains on the NZX50, with utilities software firm Gentrack leading the index higher as it climbed 5.7% to $7.43, while Ebos Group jumped 4% to $24.70, Tourism Holdings advanced 3.5% to $2.34 and a2 Milk Co rose 3.2% to $11.55.
Air New Zealand was the most heavily traded stock on the day with a volume of 3.8 million, as the national carrier ended the session unchanged at 57.5 cents.
Trading across Asia remained thin with the Lunar New Year holiday closing markets in Singapore, Hong Kong and China, with Japan’s Nikkei 225 index gaining 1.3% in late trading, while Australia’s ASX 200 rose 0.4% with National Australia Bank underpinning the increase after the bank posted a stronger quarterly cash profit than expected.
Making bank
Dual-listed Westpac Banking Corp increased 2.1% to $48.25 on the NZX, and ANZ Group Holdings advanced 1.2% to $46.53.
Tower rose 0.6% to $1.835 after chair Michael Stiassny ended his 12-year tenure on the general insurer’s board, with Naomi Ballantyne – who founded Partners Life – succeeding him. The insurer told shareholders at today’s annual meeting that gross written premium grew 2% in the first four months of the financial year, with a 5% increase in customer numbers.
Vulcan Steel increased 1.4% to $7.79. Across the Tasman, BlueScope Steel was up 2.9% in late trading after receiving a new takeover bid from SGH Ltd and Nasdaq-listed Steel Dynamics.
Fletcher Building increased 0.3% to $3.51 after its first-half earnings fell short of analysts’ expectations, with the building materials firm gain market share in light building products to offset declining volumes.
Meanwhile, Spark New Zealand fell 0.5% to $2.13 after it also missed expectations as its adjusted earnings growth fell short of analysts’ forecast.
“It’s quite a messy start to the earnings season,” Generate’s Smith said. “We’re not getting a universal picture and that reflects the patchy economy.”
Retailer KMD Brands posted the biggest decline on the NZX50, falling 2% to 24.5 cents, while courier operator Freightways declined 1.9% to $14.25.
Paul is a staff writer for Good Returns based in Wellington.
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