The NZX 50 dropped 204 points, or 1.6%, to 12,958 in Monday morning trading, reversing gains from the previous session and hitting its lowest level since May 22. The decline followed a weak close on Wall Street on Friday, driven by a sharp selloff in semiconductor stocks.
Sentiment was further pressured by renewed geopolitical concerns after Iran struck Israel, raising fears of escalating tensions between the US and Iran. However, US President Trump reportedly urged Israeli Prime Minister Netanyahu not to retaliate against Iran.
Investors were also cautious ahead of key economic releases later this week, including US inflation data, as well as China’s inflation and trade balance figures, and New Zealand’s business PMI.
Losses were broad-based, with industrials, financials, healthcare, and utilities weighing most heavily on the index. Notable declines included Auckland International Airport (-2.8%), Fletcher Building (-1.9%), Infratil (-1.8%), Mainfreight (-1.6%), and Ebos Group (-1.5%), while Fisher & Paykel Healthcare and Freightways Group each fell 1.3%.