FX.co ★ New Zealand Stocks Poised for Notable Monthly Decline

The NZX 50 index decreased by 28 points, equivalent to a 0.2% decline, reaching 13,323 in Friday morning trading. This marked its third consecutive decline and suggested it was on course for a second straight weekly loss. This downturn coincided with losses observed in the S&P 500 and Nasdaq indices on Wall Street on Thursday, as investors skeptically questioned whether the substantial AI investments by large-scale tech firms would yield profitable returns. Domestically, New Zealand's business sentiment dipped to a three-month low in January, with forward-looking indicators indicating weakness and inflation expectations on the rise. Internationally, attention turns to China, New Zealand's major trading partner, where official PMI figures are anticipated this weekend, followed by a private survey next week. Within the NZX 50, consumer durables and non-energy minerals exerted downward pressure on the index, although sectors like logistics and retail trade offered some resistance to the overall decline. Among individual companies, Millennium & Copthorne Hotels experienced the largest drop (-4.2%), followed by Freightways Group (-1.7%), Ryman Healthcare (-1.4%), and Delegat Group (-1.1%). So far, markets appear set for a monthly decline, having fallen approximately 1.7%, offsetting the modest gains achieved in December.