New Zealand shares fell 51 points, or 0.4%, to 13,000 in early Friday trading, tracking Wall Street’s overnight decline as rising oil prices and heightened tensions in the Middle East dampened risk appetite and further clouded the outlook for interest rate cuts. The benchmark NZX 50 slipped to its lowest level since early September and is on track for a third straight weekly loss, down 1.3% so far this week, after weak Q4 GDP figures highlighted cooling economic momentum amid elevated borrowing costs and persistent cost pressures.
Fresh trade data for February showed imports jumping 12% year-on-year, driven by stronger demand from China, the EU, the US, and South Korea, while exports edged up just 0.4%, weighed down by softer shipments to China and Japan. Sector declines in non-energy minerals, industrial services, and healthcare more than offset gains in consumer durables, commercial services, and logistics. Among individual names, Fletcher Building (-1.2%), Sanford (-1.1%), Turners Automotive (-1.0%), and Spark NZ (-0.9%) were notable laggards.
Investors are now looking ahead to the mainland’s monthly loan prime rate decision later today, after nine consecutive months at record lows.