Asian markets were mixed as the AI tailwind subsided, and the Middle East conflict continued.
New Zealand’s S&P/NZX 50 index fell as Australia’s CSL continued to weigh on health stocks such as Fisher & Paykel Healthcare and Ebos Group, and Infratil lost momentum from its hefty lift in contracted capacity.
The A2 Milk Co led the benchmark index lower, even as other food exporters rallied, such as Scales Corp, Sanford and the Fonterra Shareholders’ Fund, while Vulcan Steel posted the biggest gain on the day in relatively thin trading.
Statistics New Zealand’s concrete-use figures were weaker than expected, while ANZ’s monthly traffic gauge showed light vehicle movements tapered off in April, in a mixed day for travel and logistics firms.
And Nasdaq-listed Rocket Lab hit a new high overnight as the Kiwi-born space company carried on its rally after beating analysts’ expectations in its latest quarterly report, amid optimism for the broader sector ahead of the much-anticipated SpaceX initial public offering in New York.
The NZX50 fell 130.15 points, or 1%, to 13,080.33, with 22 stocks declining, 22 gaining, and six unchanged. The S&P/NZX 20 index futures contract for June dropped 1.3% to 7,420 with 22 lots traded on a turnover of $164,000, while the NZX20 declined 1.1% to 7,435.66.
Turnover across the main board was $168.9 million, of which Infratil accounted for $24.1 million and F&P Healthcare $23 million, as the heavyweights dragged the index lower.
Infratil fell 2.2% to $15.38, giving back some of its recent gains since surging on a multibillion-dollar contract for its CDC unit, while F&P Healthcare declined 2.9% to $34.28, with health stocks still feeling the drag of Australia’s CSL after the biotech firm cut its earnings outlook again. Ebos dropped 1.9% to $20.85.
Jeremy Sullivan, an investment adviser at Hamilton Hindin Greene, said Infratil and F&P Healthcare were the major weights on the index, with some investors taking profits on Infratil’s recent rally.
“Ebos continues to drift off as well – it hasn’t had an upwards month since July 2025,” Sullivan said.
The A2 Milk Co led the benchmark lower, falling 4.4% to $7.70. The milk marketing firm had 5.2% of its total stock reported as short positions on May 6, according to the Australian Securities and Investments Commission’s daily report. Short positions are where an investor borrows a security to sell it on the expectation they can buy it back at a lower price and pocket the difference.
Meanwhile, food exporters were broadly stronger on the day, with Scales up 1.6% at $6.35 and Sanford rallying 0.5% to $8.02 ahead of its first-half result on Thursday. And Fonterra Shareholders’ Fund units increased 0.3% to $6.70.
Outside the benchmark, NZ King Salmon Investments rose 2.2% to 23 cents, Synlait Milk advanced 1.1% to 47 cents, and Comvita gained 5.6% to 75 cents after the honey products maker accepted $990,000 in oversubscriptions as it raised $40.5 million in a rights offering and placement.
New Zealand’s stock market was a laggard in a mixed day across Asia, with Australia’s S&P/ASX 200 index down 0.3% in late trading, while Japan’s Nikkei 225 index gained 0.5%.
South Korea’s Kospi, which has been a beneficiary of the artificial intelligence tailwind, sank 3% after a top policymaker floated the prospect of a citizen’s dividend from the excess tax revenue generated by the AI boom.
Meanwhile, prediction markets continue to price less-than-even odds of the US and Iran reaching a permanent peace by the end of June after President Donald Trump dismissed the Islamic Republic’s latest proposal. Brent crude oil futures rose 0.6% to US$104.84 a barrel at 5pm in Auckland, while the kiwi dollar traded at 59.55 US cents from 59.41 cents yesterday.
US inflation figures overnight are in focus, with economists predicting a small increase in the core figure, which excludes fuel prices.
Stats NZ data today showed ready-mixed concrete volumes increased 1.8% in the March quarter from a year earlier, with South Island activity the main driver. Still, that fell short of Infometrics economist Gareth Kiernan’s expectations.
“Significant cost increases and uncertainty stemming from the Iran War are likely to see some planned projects put on hold, which could place renewed downward pressure on concrete volumes over the next 12 months,” Kiernan said in a note.
Fletcher Building was unchanged at $2.91, while Vulcan Steel jumped 3.5% to $6.47 to post the biggest increase on the NZX50. Metro Performance Glass was unchanged at $1 and Steel & Tube Holdings sank 7.7% to 36 cents.
Freightways and Mainfreight parted ways after ANZ’s Truckometer gauge showed light traffic slowed more markedly in April than heavy vehicles. Courier operator Freightways rose 0.8% to $13, while trucking and logistics group Mainfreight fell 0.7% to $57.50.
Retailers were mixed after the government’s latest financial statements showed the $38 billion of goods and services tax collected in the nine months ended March 31 was about $1.02 billion below the December forecast. KMD Brands decreased 1.5% to 6.4 cents and Warehouse Group declined 0.8% to 64.5 cents, while Briscoe Group increased 0.4% to $4.62 and Hallenstein Glasson Holdings rose 1.5% to $10.45.
Property for Industry gained 1.7% to $2.38 after the industrial landlord lifted its earnings expectations and projected dividend.
Auckland International Airport was the most heavily traded stock on the day with a volume of 2.1 million shares changing hands. The major gateway increased 1.7% to $8.39.
And Nasdaq-listed Rocket Lab extended its launch higher, climbing 11% to US$117.35 overnight after Needham lifted its price target on the stock to US$120 from US$95 and kept its ‘buy’ rating. The space company was the third-most traded US security by Sharesies users in the latest session, and the second-most traded security by Hatch customers.
Reporting by Paul McBeth.
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