NZX50 declines as tech stocks weigh across Asia; stalling gold price slaps miners

Gentrack led New Zealand’s S&P/NZX 50 index lower as tech stocks across Asia pulled back from their recent highs, while mining firms were sold off after the surging gold price came to an end.

National carrier Air New Zealand was among the decliners after trimming its first-half earnings guidance as bookings remain soft and a global carbon obligation is set to push up the airline’s fuel costs.

Fletcher Building, Winton Land and Steel & Tube Holdings steered clear of the red side of the ledger as the materials firms and property developer were muted in their expectations for the coming year at their respective annual meetings.

And Morningstar Research is extending its coverage to KiwiSaver funds and will start rating the largest government-sponsored savings schemes some time next year.

A red afternoon

The NZX50 fell 71.41 points, or 0.5%, to 13,306.44, with 30 stocks declining, 19 gaining and one was unchanged. Turnover across the main board was $140.3 million, of which Fisher & Paykel Healthcare accounted for $26.2 million as it fell 2.1% to $35.

Stocks across Asia were broadly weaker, with Australia’s resources-heavy S&P/ASX 200 index down 0.9% in late trading after the gold price slumped overnight as calmer investors rethought their positions in the traditional safe haven.

For the dual-listed would-be gold miners, Santana Minerals dropped 9.8% to 97 cents and Uvre sank 23% to 23 cents, while the Smart gold exchange traded fund fell 5.3% to $3.891.

Tech companies were among the hardest hit in Hong Kong, with the Hang Seng down 1.3% in late trading, and utilities software firm Gentrack led the NZX50 lower as it dropped 5.2% to $8.90 – its lowest close since May last year.

Travel software developer Serko fell 2.1% to $2.75 and Vista Group International declined 1.9% to $2.56, while outside the benchmark index, Eroad slipped 2.2% to $1.81 and Paysauce was down 1.9% at 26 cents. Black Pearl Group bucked the trend, surging 7.4% to $1.235.

Air New Zealand slipped 0.8% to 59 cents after the national carrier said it expects to report a first-half pre-tax loss as an expected increase in bookings didn’t emerge and as it faces an increased fuel cost from an international carbon offset obligation.

“The shares didn’t react too much, but it’s pretty ugly,” said Greg Smith, investment specialist at Generate Investment Management.

Tourism Holdings declined 0.8% to $2.45 and Auckland International Airport increased 0.3% to $8.16.

Removing obstacles

NZX slipped 1% to $1.505 after the government announced plans to ease climate reporting obligations, which have been seen as a roadblock to new listings on the local bourse.

Fletcher Building was unchanged at $3.15 after telling shareholders at today’s annual meeting that it’s still working through a cost-cutting programme to make sure it’s ready when the economic cycle eventually turns. It also said it's pressing ahead with plans to sell some assets.

Sanford posted the biggest gain on the NZX50, up 3.6% at $5.80, while Channel Infrastructure advanced 2.4% to $2.60.

Precinct Properties NZ was the most heavily traded stock on the day with 2.9 million shares changing hands as the commercial landlord rose 0.4% to $1.235.

Fonterra Shareholders’ Fund units dipped 0.1% to $8.30 and a2 Milk Co fell 1.9% to $10.29 after milk prices fell at the latest Global Dairy Trade auction. Synlait Milk gained 1.4% to 75 cents.

Winton Land rose 0.9% to $2.15 and Steel & Tube advanced 1.4% to 71.5 cents after the property developer and steel products maker told their respective annual meetings that they’re both cautious heading into 2026, but are seeing flickering signs of increased activity.

Michael Hill International fell 3.6% to 40 cents after telling shareholders at its annual meeting that retail conditions remain tough in New Zealand, with the larger markets in Canada and Australian both boosting sales.

Warehouse Group was unchanged at 80 cents and KMD Brands fell 1.8% to 29.5 cents, while Briscoe Group rose 1.8% to $5.20 and Hallenstein Glasson Holdings advanced 0.9% to $9.65.

Generate’s Smith said Michael Hill was fortunate New Zealand isn’t its biggest market.

“There’s going to be a bunch of retailers hoping for a good Christmas,” he said.

And Morningstar Research announced plans to expand its coverage to include KiwiSaver funds at some point next year, with a view to initially reporting on the top dozen or so providers.

Reporting by Paul McBeth. Image from Curious News.