The local benchmark was a laggard across Asia on Friday.

New Zealand’s S&P/NZX 50 index fell for a second day as the domestic earnings season comes to a close, with Air New Zealand holding at its record low as it reported a loss in line with expectations after the Middle East conflict ratcheted up oil prices and knocked carriers around the world.

The benchmark index snapped three weeks of gains, having closed above 14,000 for the first time on Wednesday, with travel software developer Serko posting the sharpest decline, while heavyweights such as Meridian Energy and Ebos Group were among the drags on the bourse.

Among other companies reporting today, Channel Infrastructure and Sky Network Television rallied after beating analysts’ forecasts, while Hallenstein Glasson Holdings signalled a strong report would come in September.

And Winton Land hit a fresh low with yet another director exiting the property developer over disagreements with controlling shareholder Chris Meehan’s approach to governance.

Winter chill

The NZX 50 fell 111.87 points, or 0.8%, to 13,768.18 on Friday, taking the weekly decline to 1.5%, its sharpest slide since mid-May.

Serko posted the steepest weekly drop on the NZX 50, falling 9%, while Air NZ sank 7.2%, Chorus declined 6.7%, Meridian slid 6.3% and Ebos was down 6.1%.

SkyCity Entertainment Group posted the biggest gain for the week, up 11% with the casino operator confirming reports that it had attracted – and rejected – opportunistic bids in May, while Summerset Group Holdings rallied 9.9%.

Within the index on Friday, 36 stocks declined, 12 gained and two were unchanged. The S&P/NZX 20 index futures contract for September fell 0.5% to 7,680, with 391 lots traded for a value of $3 million, while the NZX 20 sank 1% to 7,694.76.

Turnover across the main board was $141.8 million, of which Fisher & Paykel Healthcare accounted for $15.6 million as it decreased 0.9% to $43.80.

The local market was one of the laggards across Asia, ahead of Federal Reserve chair Kevin Warsh’s keynote address to the annual central bankers’ symposium in Jackson Hole, Wyoming, seen as the next major test for investors. The kiwi dollar traded at 59.58 US cents at 5pm in Auckland from 59.50 cents yesterday.

Japan’s Nikkei 225 rose 0.6% in late trading and Hong Kong’s Hang Seng was up 0.4%, while Australia’s S&P/ASX 200 index gained 0.5%, as Nvidia’s blockbuster quarterly report set an upbeat tone. Still, South Korea’s Kospi dropped 1.4%. 

Locally, Meridian was the biggest drag on the NZX 50, falling 1.9% to $5.25 on Friday, while Infratil dropped 1.9% to $14.29.

Vista Group International posted the biggest decline on the day, down 4.6% at $2.68, with Vital Healthcare Property Trust falling 3.6% and Genesis Energy declining 3.3% to $2.61 after the power company’s target price was trimmed 1.4% by Macquarie analysts to $2.15.

Air New Zealand was unchanged at 38.5 cents – an all-time low on an adjusted basis – after the national carrier reported a pre-tax loss of $336 million and said it expected the current financial year to be a period of transition and recovery, with an update on medium-term goals to provide more detail later this year.

“The business is still dealing with a lot of issues that are outside management's control, but it was encouraging to see signs that some of the operational challenges are starting to ease,” Amova Asset Management research analysts Tim O’Loan said in a note. “Air New Zealand can control costs, capacity, and pricing, but it can't control jet fuel prices.”

Port of Tauranga dipped 0.3% to $8.10 as the maritime hub lifted annual earnings 18%, largely in line with expectations.

Uneasy households

Retailers were weaker after the ANZ-Roy Morgan monthly consumer confidence survey showed household sentiment dipped in August, with fewer people saying it was a good time to make a big-ticket purchase than in July.

Sharon Zollner, chief economist at ANZ New Zealand, said households remained cautious in the face of volatile oil prices.

“The real income effects of the oil shock persist – New Zealand is poorer when the price of an imported necessity rises,” Zollner said in a note. “But some of the confidence impact appears to be fading.”

Briscoe Group fell 1.8% to $4.50 and KMD Brands declined 1.5% to $1.675, while Warehouse Group decreased 1.4% to 69 cents, and Michael Hill International was unchanged at 41.5 cents ahead of the jeweller’s results.

Hallenstein Glasson posted the biggest gain on the NZX 50, climbing 8.4% to $11.65 after the retailer said annual sales jumped 20% and profit gained 43%, ahead of its formal report on Sept 29.

Channel Infrastructure gained 6.9% to $3.42 after the import terminal operator raised its annual earnings guidance and hiked its interim dividend 16% to 7.25 cents per share, with first-half earnings nudging up 1%.

Sky TV jumped 5.7% to $3.55 after the pay-TV operator lifted annual earnings 9%, near the top end of guidance, and declared a bigger final dividend than expected, with a shift to quarterly payments coming in the current financial year.

Outside the benchmark index, Comvita rose 3.8% to 82 cents as the honey products maker reported a return to profit, while Delegat Group advanced 5.4% to $4.50 as the winemaker lifted annual earnings 15% to a record.

Foley Wines increased 3.8% to 55 cents as it reported a 23% lift in operating earnings, and Synlait Milk was unchanged at 42.5 cents as it signalled an improved second half, saying it expected to report a net loss of between $70 million and $75 million, having posted a first-half loss of $80.6 million.

Winton Land sank 6.3% to a record-low $1.05 after executive director Julian Cook joined the boardroom exodus over disagreements with majority shareholder Chris Meehan’s approach to corporate governance. The property developer had its worst week since listing in 2024, sinking 25%.

Reporting by Paul McBeth.