NZX50 gains in 2025 as exporters drive growth; small caps outperform

New Zealand’s S&P/NZX 50 index notched up a third year of annual gains in a row, albeit as a slower pace than markets elsewhere, with primary goods exporters doing much of the heavy lifting in 20205, as Sanford, a2 Milk Co and the Fonterra Shareholders’ Fund led the benchmark higher.

The domestic stock market’s gains were more pronounced among smaller companies, with the mid- and small-cap indices powering ahead at a faster clip, with Third Age Health Services taking out the honours at the top of the main board as it continues to bolt-on aged care and general practices.

Meanwhile, retailers KMD Brands and Michael Hill International were at the bottom of the main board as discretionary spending remains on the backburner, particularly in New Zealand.

And on the final day of the year, the NZX50 was ever-so-slightly higher as a dip for Infratil almost overshadowed widespread gains on the bourse.

New Year’s Eve

The NZX50 increased 0.29 of a point to 13,548.42 in the final abbreviated trading session of the year, with 24 stocks gaining, 17 declining and nine unchanged. Turnover across the main board was $44.5 million, of which Auckland International Airport accounted for $12 million as it rose 0.6% to $8.33.

KMD Brands continued to spend alternate days at either end of the leaderboard, posting the biggest gain on the day as it rose 3.6% to 28.5 cents, while Infratil’s 2.4% decline to $11.08 weighed on the benchmark.

The NZX50 rose 3.3% in 2025, its third annual gain in a row, with Sanford leading the benchmark higher as it surged 74% to end the year at $7.40. That was its best year on an adjusted basis since 1992.

The a2 Milk Co jumped 71% to $10.78 in 2025, while the Fonterra Shareholders’ Fund climbed 59% to $8.20.

A softer currency has supported exporters as the Trump administration’s tariff regime whipped around global trading norms, and the kiwi slipped to 57.85 US cents at 2pm in Auckland from 58.08 cents yesterday, putting it on track for a 3.4% gain through the year. On a trade-weighted basis, the kiwi dollar is heading for a 0.9% decline.

New Zealand’s primary sector was the backstop of the economy, with strong commodity prices at the start of the year filtering through to provincial and rural areas.

Rural services firm PGG Wrightson climbed 37% to $2.16 in its best year since 2021, while Allied Farmers nudged up 3.8% to 82 cents for the year.

Channel Infrastructure, which is eyeing up acquisitions across the Tasman, climbed 56% to $2.92 in 2025, marking its fifth year of gains.

Fuelling up

Freightways posted its biggest annual gain since 2004 as it climbed 35% to $14.45 as investors grow optimistic the Reserve Bank’s rate cuts will start fuelling activity in the domestic economy, while Fletcher Building’s 29% rally was its best since 2016, ending the year at $3.68.

KMD Brands was the weakest performer on the NZX50, falling 36% for the year, while Michael Hill International posted the steepest loss across the main board as it slumped 37% to 30.5 cents in its fourth year of double-digit declines.

Ryman Healthcare, which had to strengthen its balance sheet in the year, posted a 33% decline in 2025 to end the year at $2.91, while Gentrack shed 33% to end the year at $8.42 as it snapped four years of gains and faces an increasingly cashed-up rival in the form of the Kraken platform.

Smaller companies drove gains across the NZX’s main board in 2025, with the S&P/NZX small cap index climbed 28% in its best year since 2012, while the mid-cap index’s 20% gain was its best since 2019.

Third Age Health Services posted the biggest gain on the NZX’s main board, surging 125% to $5.48 as the junior healthcare operator continues to bolt on aged care and general practices to its expanding business.

Meanwhile, ikeGPS jumped 95% to $1.09 after attracting takeover interest earlier this year and Bremworth jumped 93% to 75.5 cents after its new board found a buyer for the carpetmaker – albeit one that might find it hard to sway the antitrust regulator – who will let it keep the proceeds from its insurance payments.

Santana Minerals climbed 94% to $1.05 in a strong year for gold prices, with the Smart gold exchange traded fund advancing 58% to $4.01.

Among the NZX’s blue chips, Fisher & Paykel Healthcare dipped 1.7% in 2025 to end the year at $37.75, while Auckland airport fell 4.3% and Meridian Energy slipped 5.3% to $5.60.

Infratil dropped 12% in its first annual decline in eight years, while Ebos Group’s 25% slide to $27.62 was its steepest yearly drop since 2000. Spark New Zealand dropped 23% to $2.28 in its second year of double-digit declines.

Reporting by Paul McBeth. Image from Curious News.