NZX 50 almost flat for the week as lower rate outlook offsets energy gloom

NZ eked out a small gain on Friday in a busy day for Freightways.

Friday, June 26th 2026, 7:43PM

by Paul McBeth

New Zealand’s S&P/NZX 50 index snapped two weekly gains to end the week fractionally lower as Freightways and Fletcher Building rallied on the prospect of slower rate hikes and a weak kiwi dollar buoyed exporter a2 Milk Co, offsetting declines for out-of-favour power companies that followed lower oil prices.

The New Zealand dollar touched a fresh seven-month low as ASB Bank joined Westpac NZ in predicting the Reserve Bank will refrain from hiking the official cash rate next month, and as separate data showed the central bank was a net seller of the kiwi last month.

The local benchmark bucked a broader decline across Asia on Friday, after Apple’s price hike and reports that OpenAI might push out its initial public offering to next year added more cause for concern about the tech sector, with Freightways leading the benchmark higher in its heaviest trading day since October 2024.

And Tourism Holdings reversed earlier gains after Forsyth Barr raised its odds for a successful takeover of the rental campervan operator, following a subdued outlook by US motorhome maker Winnebago.

Smooth waters

The NZX 50 edged up 2.19 points to 13,495.25 on Friday, with 31 stocks gaining, 15 declining and four unchanged. Across the week, the benchmark was almost unchanged, as it shed 0.39 points.

Travel software developer Serko posted the steepest decline on the week, falling 8.9%, as tech stocks around the world were weighed down by renewed fears about the pace of investment in artificial intelligence.

The local electricity generator-retailers were also a drag this week, falling between 2.6% and 4.6% with energy companies on both sides of the Tasman following oil prices lower, with Brent crude down 8.2% so far this week. Air New Zealand bucked the trend among global airlines, falling 8.9% this week.

Those declines were offset by exporter a2 Milk climbing 8.4% as the kiwi dollar dropped to a seven-month low on the diverging rate tracks for the US Federal Reserve and New Zealand’s central bank. ASB Bank and Westpac NZ both changed their domestic rate outlook, predicting the central bank would keep the official cash rate at 2.25% next month.

The more benign rate outlook and cheaper fuel costs supported companies tied to the local economy, with Freightways climbing 5.2% this week and Fletcher up 6%.

The kiwi dollar fell as low as 56.26 US cents, trading at 56.41 cents at 5pm in Auckland from 56.48 cents yesterday and heading for a 1.6% weekly decline. Reserve Bank data showed the central bank sold a net $252 million in May, ending two months of net purchases.

New Zealand’s stock market sat out a decline across Asia on Friday as tech companies in particular were rattled by Apple’s price hike on the rising cost of chips and a New York Times report that OpenAI was leaning towards a 2027 IPO. Australia’s S&P/ASX 200 index nudged up 0.1% in late trading, while South Korea’s Kospi sank 7.8% and Japan’s Nikkei tumbled 4.7%.

“We held up better than most because we don’t really have a tech sector,” said Greg Smith, investment specialist at Generate Investment Management.

“There are different stories within the tech sector.”

The S&P/NZX 20 index futures contract for September decreased 0.2% to 7,579, with 100 lots traded for a value of $759,000, while the NZX 20 edged down 0.77 points to 7,623.13.

Heavy traffic

Turnover across the main board was $149.1 million, of which Freightways accounted for $21.5 million as the courier operator rose 4.3% to $13.89, posting the biggest gain on the day.

That was the heaviest trading day for Freightways since October 2024, with one trade of 1.4 million shares at $13.90 accounting for most of the 1.5 million traded.

Spark New Zealand was the most heavily traded stock on the day with a volume of almost 5.2 million as it rose 1.1% to $1.86, having been upgraded to ‘overweight’ by Jarden analysts this week due to the recent slump in share price.

Among other gainers on the day, Serko rose 2.8% to $1.49, Briscoe Group increased 2.6% to $4.68 and Vector advanced 2.6% to $5.07.

Vista Group International increased 1.2% to $2.48 after it said existing client Cineplexx would move to the firm’s full cloud offering.

KMD Brands posted the biggest decline on the NZX 50, falling 2.7%, or 0.2 of a cent, to 7.2 cents. The retailer is undertaking a one-for-25 share consolidation next month, and today said it completed the refinancing of its $208 million debt facilities.

Turners Automotive Group fell 2.3% to $8.40 and dual-listed Westpac Banking Corp slipped 1.9% to $43.10.

Tourism Holdings declined 0.4% to $2.88 after Forsyth Barr analysts Andy Bowley and Hugh Lockwood raised their price target by 25 cents to $3.35 on news of a rival bidder to the Trouchet family and BGH Capital, which the Australian Financial Review reported was Portugal’s Indie Campers, the firm that bought THL’s UK and Irish operations earlier this year.

“We believe the likelihood of a binding offer emerging is high and expect there would be shareholder support for a transaction,” Bowley and Lockwood said in a note to clients. “The key question is whether potential final offers will be sufficient to secure a unanimous recommendation from the board?”

Outside the benchmark index, CDL Investments was unchanged at 71 cents after it said its Middle Road residential development in Hawke’s Bay was accepted for referral under the fast-track consent programme.

Paul is a staff writer for Good Returns based in Wellington.

Tags: Market Close