NZ dollar nudges higher, NZX 50 dips as RBNZ hikes

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Blue chips weigh on the benchmark index.

Wednesday, July 8th 2026, 6:29PM

by Paul McBeth

The Reserve Bank hiked the official cash rate 25 basis points to 2.5%, keeping the majority of forecasters happy as the central bank seeks to get ahead of any building inflationary pressures.

The S&P/NZX 50 index fell in a mixed day across Asian markets as renewed tensions between the US and Iran pushed oil prices higher, while blue-chip stocks such as Fisher & Paykel Healthcare and Infratil weighed on the local bourse.

The a2 Milk Co led the NZX 50 lower as the milk marketing firm shed rights to its upcoming special dividend, while Mainfreight was also weaker as it went ex-dividend.

And Tāiko Critical Minerals surged 15% as it resumed trading, having raised $7 million in a discounted placement and ahead of a share purchase plan, while Rua Bioscience halted trading of its shares to coordinate a joint announcement with an international counterparty.

Rating the outlook

The NZX 50 dropped 97.61 points, or 0.7%, to 13,665.18, with 26 stocks declining, 19 gaining and five unchanged. The S&P/NZX 20 futures contract for September fell 0.3% to 7,713 with 20 lots traded for a value of $154,000, while the NZX 20 slid 0.9% to 7,724.47.

Turnover across the main board was $118 million, of which Auckland International Airport accounted for $15.6 million as it dipped 0.1% to $8.72.

Stock markets across Asia were mixed, with Brent crude oil futures up 2.6% at US$76.08 a barrel after the latest skirmish between the US and Iran, and the revoking of a waiver letting the Islamic Republic sell oil. Meanwhile, the rotation out of artificial intelligence stocks sent South Korea’s Kospi down 4.9%.

Australia’s S&P/ASX 200 index was down 0.5% in late trading and Japan’s Nikkei 225 dropped 0.9%, while Hong Kong’s Hang Seng jumped 2.3%.

The kiwi dollar rose to 57.14 US cents at 5pm in Auckland from 56.95 cents yesterday after the Reserve Bank hiked the OCR. The monetary policy committee said stimulus would probably need to be reduced further, but that the timing would depend on data and price-setting behaviour.

“It probably wasn’t clear-cut that they were going to move, with 70/30 in favour, so not really a major surprise and there hasn’t been too much reaction in the market,” said Grant Williamson, a director at Hamilton Hindin Greene. “Some of the bigger New Zealand stocks are under a little bit of pressure.”

Among local heavyweights pushing the index lower, F&P Healthcare fell 2.6% to $39.80 and Infratil declined 2.3% to $15.04, while Spark New Zealand decreased 1.1% to $1.84 on a volume of 2.8 million shares, the most for the day.

A great weight

The a2 Milk Co and Mainfreight were among those weighing on the NZX 50 as they went ex-dividend. The a2 Milk Co fell 4.8%, or 44 cents, to $8.75 as it shed rights to a 41.36 cents per share special dividend, while Mainfreight was down 1.3%, or 81 cents, at $63.19, ahead of its 87-cents per share return.

Fonterra Shareholders’ Fund units dipped 0.1% to $7.18, while Synlait Milk dropped 6.4% to 36.5 cents after milk prices fell at the latest Global Dairy Trade auction.

Channel Infrastructure, whose prices are linked to the producer prices index, rose 2.9% to $3.24, the biggest gain on the NZX 50, while stock market operator NZX advanced 2.8% to $1.49.

Napier Port Holdings advanced 1.1% to $3.78 despite reporting quarterly declines in container and bulk cargo volumes.
Stride Property Group increased 0.4% to $1.155 after reaffirming guidance to pay dividends of 8 cents per share in the current financial year at its annual meeting in Auckland.

Outside the benchmark index, would-be minerals miner Tāiko surged 15% to 34 cents in its heaviest day of trading since listing in early March, after raising $7 million at 25 cents a share in a placement to institutions. The company will raise another $3 million in a share purchase plan to help fund its project towards construction.

Rua Bioscience halted trading of its shares – last at 2.9 cents – to coordinate a joint announcement with an international counterparty who is also listed. The halt is in place until Monday July 13, or when the announcement is made.
 

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

Tags: Market Close

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