AFT ended the week at a 19-month high.
New Zealand’s S&P/NZX50 index escaped the brunt of the tech rout as investors soured on the artificial intelligence sector despite their initial embrace of Nvidia’s strong result, with jobs data raising questions as to whether the Federal Reserve will cut its benchmark interest rate next month.
The NZX50 fell for a second week, with the Fonterra Shareholders’ Fund among those pacing the benchmark lower as milk powder prices extended their decline, while dual-listed lenders Westpac Banking Corp and ANZ Group Holdings were part of the broader selloff across the Tasman.
Briscoe Group led the benchmark lower on Friday, with Infratil joining the retailer at the bottom of the leaderboard with the infrastructure investor losing some of its sheen in the waning optimism about the AI sector.
Meanwhile, Oceania Healthcare declined after missing expectations and continuing its freeze on dividends.
The NZX50 decreased 20 points, or 0.2%, to 13,419.4 on Friday, with 22 stocks declining, 25 gaining, and three unchanged. Turnover was $137.9 million across the main board, of which Infratil accounted for $18.9 million as it fell 3.4% to $11.55.
The infrastructure investor is one of the few local companies with exposure to the burgeoning AI sector, which initially got a boost from a solid quarterly result from chipmaker Nvidia on Wednesday in the US until sentiment soured overnight, triggering a wave of selling, particularly of tech stocks.
Australia’s S&P/ASX 200 index was down 1.5% in late trading, while Japan’s Nikkei 225 dropped 2.5% and Hong Kong’s Hang Seng fell 2.1%.
That turn in sentiment, which saw Wall Street’s fear gauge – the volatility index – spike higher overnight comes amid heightened scepticism about the pace of growth in AI, and as investors grow wary that the Federal Reserve might keep the federal funds rate on hold next month.
“If there’s one thing that share markets like, it’s the sugar rush of an interest rate cut,” said Peter McIntyre, an investment adviser at Craigs Investment Partners. “It was interesting to see how volatile the index was overnight, and futures are looking quite good at this early stage.”
Still, New Zealand’s lack of tech companies and low beta meant it managed to avoid the harsher declines across Asia, McIntyre said.
The NZX50 ended the week down 0.3%, its second decline in a row, with the Fonterra Shareholders’ Fund sliding 4.3% to close Friday at $7.768. The GDT index fell for a seventh time at the latest Global Dairy Trade auction this week and ANZ economists downgraded their forecast farmgate milk price 35 cents to $9.65 per kilogram of milk solids for the 2026 season.
The dual-listed lenders were also weaker across the week, with Westpac Banking Corp down 3.5% at $43.05 and ANZ Group Holdings falling 2.4% to $40.46, while Tourism Holdings dropped 3.6% across the week to end Friday at $2.43.
The Smart Bitcoin exchange traded fund dropped 11% over the week to end Friday at $3.374, its biggest weekly decline since February. Bitcoin fell 0.9% to US$85,543 at 5pm in Auckland.
Sanford was a star performer across the week, climbing 3.8% to $7.30 on Friday in its fifth straight gain to notch up a weekly rise of 19%. It reported a record profit on Wednesday.
AFT Pharmaceuticals jumped 10% to $3.75, extending its gain after reporting record first-half revenue on Thursday, and taking its weekly gain to 17% as it closed the week at its highest level since February last year.
Friday earnings reports were more muted, with Oceania Healthcare dipping 0.6% to 82 cents after reporting a 19 lift in underlying first-half profit, which fell short of expectations. The aged care provider continued its pause on dividend payments and reported negative free cash flow in the period.
Outside the benchmark index, Eroad fell 3.6% after its first-half loss blew out on the signalled writedown of its North American business. Free cash flow improved and the transport hardware and software firm said it’s on track to meet its annual guidance.
Black Pearl Group was unchanged at $1.02 after reporting an almost doubling of annual recurring revenue and widening gross margin. The software company recently raise $11.8 million and is due to start trading on the ASX with a second listing next week.
Briscoe Group led the NZX50 lower on Friday, falling 4.2% to $5.22 on relatively light volumes, while Investore Property declined 2.8% to $1.20 and Vista Group International slipped 2.3% to $2.54.
Gentrack posted the biggest gain on the day, up 4.7% at $7.85, while Turners Automotive Group extended its rally, rising 3.2% to $8.02 and Contact Energy advanced 2.2% to $9.60.
Sky Network Television was unchanged at $3.60 after the pay-TV operator affirmed guidance at its annual meeting, saying conditions for the old TV3 – now rebadged as Sky Free – have been softer than expected but that the advertising market is showing signs of perking up in calendar 2026.
Media group NZME dipped 0.8% to $1.19.
Air New Zealand slipped 0.8% to 62 cents after the national carrier said it will wrap up its share buyback programme next Tuesday, having bought back 133 million shares for $80 million, or roughly 60.2 cents a share.
Trade Window Holdings shares were halted at 35 cents as the digital trade company prepared to raise A$5 million in a placement to eligible investors at 25 cents a share.
The kiwi dollar traded at 55.94 US cents at 5pm in Auckland from 56.08 cents yesterday and is heading for a 1.4% weekly decline.
Reporting by Paul McBeth.
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