The NZX 50 fell 64 points, or 0.5%, to 13,721 in Monday morning trade as investors took profits after the index hit a record high in the previous session, with the market reopening following Friday’s holiday closure. Sentiment was further dampened by escalating conflict in the Middle East and rising oil prices, which reinforced inflation concerns and expectations of additional interest rate hikes. Traders also remained cautious ahead of key upcoming data releases, including US inflation figures and major Chinese indicators such as Q2 GDP.
Even so, the decline was partially offset by stronger-than-expected domestic data, with New Zealand’s private sector recording its fastest growth since December 2025. The services sector returned to expansion, and manufacturing posted its strongest performance since July 2021. Sector-wise, consumer staples, communication services, and real estate led the market lower. A2 Milk dropped 3.4% after weaker Global Dairy Trade auction results, while other notable early decliners included Chorus (-1.9%), Delegat Group (-1.9%), and Fletcher Building (-1.7%).