PGG Wrightson and Seeka show the primary sector is still doing well.
New Zealand’s S&P/NZX 50 index edged ever so slightly into positive territory after Reserve Bank governor Anna Breman cooled expectations for a rate hike next year as she prepares to do a round of media interviews.
The kiwi dollar fell on the central bank’s statement, providing a tailwind for exporters such as Fisher & Paykel Healthcare, a2 Milk Co, Sanford and Ebos Group.
Rural services firm PGG Wrightson and kiwifruit grower Seeka rallied after upgrading their respective earnings outlooks, while OneRoof-owner NZME gained after larger rival Trade Me’s parent reported a 21% jump in annual revenue from property listings.
Meanwhile, stocks across Asia were broadly weaker as tech companies -including New Zealand’s Gentrack and Vista Group International – were sold off in the increasing scepticism that the artificial intelligence giants will deliver on the massive investment underway.
The NZX50 edged up 1.23 points, to 13,408.14, extending its run in positive territory to a third session, after a late rally in the day. Within the index, 17 stocks gained, 24 declined and nine were unchanged. Turnover across the main board was $124 million, of which Auckland International Airport accounted for $18.9 million as it advanced 0.6% to $8.15 after reporting a 3% increase in international passenger numbers last month.
The local bourse was buoyed by comments from Reserve Bank governor Anna Breman ahead of a round of media interviews, saying the official cash rate will likely stay at the current 2.25% level for an extended period if the economy evolves as expected, and that the forecast track for the benchmark rate is for a small chance of another cut.
Wholesale interest rates rose in the wake of the central bank’s November review, having priced in a greater chance of a potential reduction next year, and banks have started raising longer dated mortgage and deposit rates in response.
“The central bank is saying if economic conditions keep going as expected, the cash rate will stay at current levels for some time,” Craigs Investment Partners investment adviser Peter McIntyre said. “That’s pulled back expectations of rate hikes and potentially why our market has got firm as the day’s gone on.”
The kiwi dollar fell to 57.70 US cents at 5pm in Auckland from 58.04 cents at 7am and 58.10 cents last week, and declined to 86.85 Australian cents from 87.19 cents last week.
Exporters were among those buoying the index, which spent most of the day in negative territory. Heavyweight F&P Healthcare rose 1% to $37.83, while a2 Milk advanced 1.5% to $10.31, fishing group Sanford increased 1.1% to $7.30 and healthcare products maker Ebos gained 0.4% to $27.65.
Stock markets were broadly weaker across Asia as investors remained uneasy about the outlook for AI after semiconductor firm Broadcom’s robust quarterly earnings on Friday failed to spur gains on Wall Street, with Japan’s Nikkei 225 down 1.5% in late trading, while Hong Kong’s Hang Seng fell 0.9%.
Australia’s S&P/ASX 200 index was also weaker, falling 0.9% in late trading, as the nation grappled with a terror attack over the weekend that killed at least 16 people.
Local tech companies were broadly weaker, following Wall Street’s lead, with Gentrack falling 3.9% to $8.79, posting the biggest decline on the NZX50, while Vista slipped 0.7% to $2.70. Outside the benchmark index, Eroad dipped 1.7% to $1.13 and Black Pearl Group dropped 5.3% to 89.5 cents.
Still, that wasn’t universal, with Serko posting the biggest gain on the benchmark index as it rose 2.7% to $3.03, while components maker Rakon increased 0.6% to 78.5 cents and ikeGPS increased 4.87% to $1.09.
PaySauce halted trading of its shares – which last traded at 28 cents – as it prepares to raise $4 million through a placement and share purchase plan at 26 cents a share.
Tourism Holdings declined 3.9% to $2.50. Australian private equity firm BGH Capital and the Trouchet family extended their pooling arrangement through to the end of June, raising the prospect that the rental campervan might receive another takeover offer.
Retailer KMD Brands was the most heavily traded stock on the day with a volume of 2.3 million as it increased 1.9% to 27.5 cents. Some 2.2 million of that volume was in one trade at the closing price.
Stock market operator NZX gained 1.3% to $1.51. Across the Tasman, ASX was down 6% in late trading after agreeing to a raft of governance reforms and holding an extra A$150 million of capital following the interim report on its stewardship role.
Fletcher Building slipped 1.1% top $3.62 after it was added as a respondent to Western Australia’s BGC claim against the materials firm’s Iplex unit over pipe issues. Separately, after trading closed the firm announced James Miller as its newly-created deputy chair role.
Outside the benchmark index, PGG Wrightson rose 1.4% to $2.20 after lifting its earnings outlook on the strong farmgate returns from sheep and beef farmers, while Seeka gained 3.3% to $4.65 as it boosted its guidance on strong kiwifruit sales.
And media group NZME advanced 1.7% to $1.20 after Trade Me’s latest financial statements showed online property listings revenue jumped 21% to $130.1 million in the June 2025 year.
Reporting by Paul McBeth.
Sign up to get the latest stories and insights delivered to your inbox – free, every day.
