The kiwi held above 60 US cents as US President Trump talked down the greenback.
New Zealand’s S&P/NZX 50 index joined Australia’s S&P/ASX 200 index lower as accelerating inflation across the Tasman stoked expectations the Reserve Bank of Australia will hike its target cash rate at next week’s policy review.
Interest rate-sensitive companies paced the local decline as the likes of Kiwi Property Group, Goodman Property Trust and Precinct Properties NZ were at the bottom of the leaderboard, while ANZ’s economist team pared back their expectations for the local housing market, sapping retirement village operators such as Summerset Group Holdings and Ryman Healthcare.
Meanwhile, the kiwi dollar held above 60 US cents as President Donald Trump voiced his comfort about the slump in the greenback, given his administration wants a weaker currency to bolster exporters from the world’s biggest economy.
And A2 Milk Co nudged lower after Forsyth Barr’s analysts acknowledged the moving feast of infant formula recalls plaguing food giants Nestle and Danone, saying they think the NZX-listed milk marketer is in the clear from any negative fallout.
The NZX50 fell 92.04 points, or 0.7%, to 13,418.84, with 39 stocks declining, six gaining, and five unchanged. Turnover across the main board was almost $115 million, of which Fisher & Paykel Healthcare accounted for $13.6 million as it dipped 0.1% to $38.68.
The local bourse joined the ASX200 on the red side of the ledger, with Australia’s benchmark index down 0.2% in late trading as December inflation figures showed an accelerating pace of price rises, increasing the chance of a rate hike by the Reserve Bank of Australia next week.
“Their annual trimmed mean inflation rate of 3.3% was at or slightly above consensus and a little above the RBA’s forecast, so now a February rate hike is rather more likely,” said Matt Goodson, managing director at Salt Funds Management.
The kiwi dollar fell to 86.09 Australian cents at 5pm in Auckland from 86.29 cents yesterday, while New Zealand’s two-year swap rate rose 4 basis points to 3.15%.
Rate sensitive companies were among those weighing on the local board, with commercial landlords pacing declines. Kiwi Property Group fell 2.4% to $1.005, while Goodman Property Trust was down 2.3% at $1.925, Precinct Properties slipped 2.1% to $1.145 and Argosy Property decreased 2.1% to $1.19.
Retirement village operators were also softer after ANZ’s local economist team cut their forecast for house price growth to 2% in 2026 from a previous projection of 5%, due to the prospect of Reserve Bank of New Zealand lifting the official cash rate earlier than anticipated.
Summerset Group Holdings fell 2.1% to $11.49, while Ryman Healthcare declined 0.7% to $2.86 and Oceania Healthcare slipped 1.2% to 85 cents. Outside the benchmark index, Radius Residential Care jumped 5.3% to 39.5 cents.
Briscoe Group led the NZX50 lower, falling 2.6% to $4.97, while Ebos Group declined 2.4% to $26.
Retailer Hallenstein Glasson Holdings posted the biggest gain on the benchmark index, up 1% at $9.70, while Scales Corp increased 0.9% to $5.70.
A2 Milk dipped 0.2% to $9.77 after Forsyth Barr analysts Matt Montgomerie and Benjamin Crozier said the milk marketer appears to have avoided the global infant formula recall affecting majors such as Danone and Nestle. Synlait Milk was unchanged at 62 cents.
The kiwi dollar held on to its overnight gains, trading at 60.16 US cents at 5pm in Auckland from 60.17 cents at 7am and up from 59.68 cents yesterday, with the greenback hitting a four-year low during the Northern Hemisphere trading session. US President Donald Trump played down the sliding greenback, saying he wasn’t concerned by the slump and that it supported US exporters.
Gold extended its rally as the asset class remains a favoured haven in the uncertain environment, with futures up 2.8% at US$5,227 an ounce at 5pm in Auckland.
Santana Minerals continued to recover from its knock earlier this week, jumping 8.9% to $1.34, while Manuka Resources gained 5.7% to 28 cents. Minerals Exploration dropped 6.7% to 28 cents.
Stock markets across Asia were mixed ahead of big tech earnings in the US from the Microsoft, Meta Platforms and Tesla, with Japan’s Nikkei 225 down 0.6% in late trading, while Hong Kong’s Hang Seng surged 2.2%. Indonesia’s Jakarta composite sank 7.2% in late trading after MSCI paused index changes, and raised concerns about the investability of some tightly-held firms.
Reporting by Paul McBeth.
Sign up to get the latest stories and insights delivered to your inbox – free, every day.
