The NZX 50 fell 103 points, or 0.8%, to 13,428 in early Friday trading, reversing modest gains from the previous session and positioning the index for a weekly loss after sharp declines on Wall Street overnight, driven by ongoing concerns around artificial intelligence. Profit-taking also set in after the local market hit a three-week high on Thursday.
Investor caution intensified ahead of key New Zealand data and events due next week, including food inflation figures, the trade balance, and the Reserve Bank’s first interest rate decision of 2026. January’s manufacturing PMI eased from December’s three-year high but remained at robust levels.
Selloffs were broad-based, with consumer durables, non-energy minerals, and healthcare leading declines. Some of the downside was tempered by strong tourism numbers, as December international arrivals rose 7.0% year-on-year. Sentiment was also influenced by developments in China, New Zealand’s largest trading partner, where expectations for fresh stimulus increased following weak January CPI and PPI readings.
Among the notable decliners were Gentrack Group (-2.8%), Mainfreight (-1.8%), and Fletcher Building (-1.6%).