Serko, Tourism Holdings tumble as Iran fears knock NZX50
Fonterra was a standout as the dairy giant delivered a solid first half.
Monday, March 23rd 2026, 6:18PM
by Paul McBeth
New Zealand’s S&P/NZX 50 index fell for a third day, with stock markets battered across Asia as optimism for a ceasefire in the Middle East waned after US President Donald Trump’s threats to attack Iranian energy infrastructure.
Travel and tourism stocks were knocked as Serko and Tourism Holdings led the local benchmark lower, with oil prices remaining elevated and reports of international visitors cancelling their trips to New Zealand over flight disruptions.
Meanwhile, the yield on government bonds jumped after Fitch Ratings put the government on notice over its mounting debt, sapping appetite for commercial landlords such as Property for Industry and Investore Property, which are typically held for their reliable dividends.
The Fonterra Shareholders’ Fund was one of the standouts on the day, joining a handful of exporters higher as the kiwi dollar fell, with the dairy cooperative reporting an 11% lift in first-half operating profit and lifting the forecast farmgate return.
On edge
The NZX50 dropped 90.27 points, or 0.7%, to 12,899.72, with 35 stocks declining, 10 gaining, and five unchanged. Turnover across the main board was $139.9 million, of which Fisher & Paykel Healthcare accounted for $14.4 million, as the medical device maker rose 1.6% to $37, joining a group of exporters buoyed by a softer currency.
The heightened volatility weighed on the kiwi dollar, which dropped to 58.12 US cents at 5pm in Auckland from 58.83 cents last week.
Stocks across Asia were weaker, with Australia’s S&P/ASX 200 index down 0.9% in late trading, while Japan’s Nikkei 225 dropped 3.9% and Hong Kong’s Hang Seng slid 3.5%, with investors spooked by the escalation in the Middle East. Brent crude oil futures rose 0.7% to US$112.93 a barrel at 5pm in Auckland, easing from earlier highs.
“It’s all a bit of a moving feast as soundbites continue to drive things with a widening divergence between the potential outcomes and the potential duration,” said Greg Smith, investment specialist at Generate Investment Management.
Travel and tourism stocks were among the hardest hit on the NZX50, with Serko posting the steepest decline as it sank 8.4% to $1.59 and Tourism Holdings dropped 7.8% to $2.13, while Air New Zealand declined 3.5% to 41.5 cents and Auckland International Airport decreased 1.2% to $8.10.
Radio New Zealand reported the Tourism Export Council’s rapid snapshot survey showed 77% of the 70 respondents had cancellations from British and European visitors, largely due to flight disruptions.
Meanwhile, companies held for the reliable dividends were under pressure as the yield on the 10-year government bond jumped 13 basis points to 4.88% amid growing fears that inflationary pressures will force central banks to respond to the energy shock.
Central thinking
Reserve Bank governor Anna Breman will deliver a speech to an Auckland business audience on Tuesday outlining the central bank’s initial view on the Middle East conflict.
Commercial landlords, typically held for the dividends, were broadly weaker, with PFI down 2.1% at $2.30, Investore declining 1.9% to $1.06 and Argosy Property falling 1.3% to $1.14. Precinct Properties NZ was the most heavily traded stock on the day with a volume of 2.9 million shares, ending the session unchanged at $1.06.
The power companies were broadly weaker after New Zealand First leader Winston Peters unveiled a campaign policy on Sunday to separate the generation and retail arms of the energy firms. Mercury NZ fell 1.7% to $6.40, Meridian Energy declined 0.9% to $5.44, and Contact Energy decreased 0.1% to $9.05.
Genesis Energy slipped 2.7% to $2.16 after it resumed trading, having completed the shortfall bookbuild for rights not taken up in the $300 million offer.
The rights sold at $2.17 a share, a 17 cent premium to the $2.05 rights price, meaning those investors who didn’t take up the offer will receive the difference.
Meanwhile, Fonterra Shareholders’ Fund units posted the biggest gain on the NZX50, up 2.4% at $8.43 after the dairy cooperative lifted first-half operating profit 11%, with strong milk volumes in the South Island. Fonterra raised its earnings outlook and forecast farmgate milk price.
Generate’s Smith said Fonterra’s no stranger to managing disrupted supply chains, and noted the upcoming $3.2 billion return to farmers will likely flow through to the wider economy.
Outside the benchmark index, Synlait Milk rose 3.1% to 50 cents after reporting a first-half loss and rising debt as the milk processor continues to navigate the slow path in turning the business around.
And KMD Brands gained 0.5% to 19.1 cents after the Australian Financial Review reported the retailer rebuffed an approach from former Billabong exec Paul Naude’s Stokehouse to consider carving out the Rip Curl surf business and sell it to them. KMD didn’t immediately respond to a request for comment.
Paul is a staff writer for Good Returns based in Wellington.
| « NZX50 slides 1.5% this week as Middle East conflict leaves world on edge | NZX50 slides to 7-month low as RBNZ walks narrow line on rates » |
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