NZX50 romps into end of September, notching up best quarter of 2025

The S&P/NZX 50 index posted its biggest daily gain since early August as it rounded out its strongest quarter of the year, with exporters Scales Corp and the Fonterra Shareholders’ Fund leading the benchmark higher on the day.

Meanwhile, Restaurant Brands New Zealand soared after its cornerstone Mexican shareholder Finaccess lobbed in a takeover to mop up the quarter of the company it doesn’t already own.

Companies that deliver reliable dividends were in hot demand heading into the close – when large passive investors tend to make their trades – with Auckland International Airport, Kiwi Property Group and Precinct Properties NZ gaining on heavy volumes as investors turn their mind to the Reserve Bank’s rate review next week, which is expected to deliver a cut to the official cash rate.

The Reserve Bank of Australia kept its target cash rate unchanged in a unanimous decision, with some fears inflation might have crept back a little bit in the September quarter.

Money flows

The NZX50 jumped 159.8 points, or 1.2%, to 13,292.36 in its biggest daily gain since Aug 5, with a late surge in the day during the match period, when institutional investors tracking passive funds tend to make their trades. Within the index, 40 stocks gained, five declined and five were unchanged.

Turnover across the main board was $255.9 million, of which Auckland International Airport accounted for $53 million as it rose 3.7% to $7.88, on the day’s biggest volume of 6.8 million shares.

That took the New Zealand benchmark’s gain to 5.5% in the September quarter, its biggest three-monthly gain so far this year, as it closes in on the all-time it reached 2021.

Scales Corp led the benchmark higher on the day, up 6.4% at $5.69 after the fruit exporter bought out its joint venture partner in the Meteor Australia and Fayman International businesses, and lifted its holding of the ANZ Exports subsidiary of its Australian global proteins arm.

Meanwhile, Fonterra Shareholders’ Fund units jumped 5% to $8.35, having hit a record $8.357 during the day.

“The dairy sector as a whole is having a good year and holding up in the relatively weak economy,” said Jeremy Sullivan, an investment adviser at Hamilton Hindin Greene. “Expectations for further rate cuts are starting to get into people’s planning with those yield companies doing well.”

Companies paying reliable dividends were among the gainers trading on larger volumes, including Auckland airport. Kiwi Property Group rose 1.4% to $1.055 and Precinct Properties NZ advanced 1.5% to $1.32.

New Zealand’s Reserve Bank is expected to cut the official cash rate at least a quarter-point at next week’s policy review. The kiwi dollar traded at 57.90 US cents at 5pm in Auckland from 57.84 cents yesterday.

Aussie pause

Meanwhile, the Reserve Bank of Australia kept its target cash rate at 3.6% in a unanimous decision, with committee members noting recent data suggested inflation in the September quarter might be higher than previously anticipated.

The kiwi traded at 87.65 Australian cents at 5.40pm – after the decision – from 87.89 cents at 5pm and 88.09 cents yesterday.

ANZ’s monthly business confidence survey showed an improvement in firms’ expectations for their own activity, while broader economic sentiment was unchanged with a net 50% of respondents picking better times ahead.

Fletcher Building, whose fortunes are tied to the economic cycle, advanced 1.8% to $3.37, while Freightways gained 1.6% to $13.70.

Vista Group International posted the biggest decline on the day, falling 1.7% to $2.97, with US President Donald Trump announcing plans to slap 100% tariffs on movies made outside the US.

Outside the benchmark index, Restaurant Brands soared 65% to $4.89 after cornerstone shareholder Finaccess said it plans to mount a full takeover at $5.05 a share and has entered a lock-up deed with the Accident Compensation Corp’s investment arm for its 5.9 million shares. The fast-food operator’s shares have been languishing in recent years in one of the bigger casualties of the period of high inflation.

Stock market operator NZX increased 0.4% to $1.385.

Meanwhile, Manuka Resources, the parent of ironsands explorer Trans-Tasman Resources, climbed 6.7% to 8 cents in its second day of having a secondary listing on the NZX.

Reporting by Paul McBeth. Image from Curious News.