NZ Sharemarket Starts Week Down 1%

Global marketer a2 Milk plunged more than 10% yesterday on the announcement that China’s birth rate last year was the lowest on record, and the New Zealand sharemarket had its biggest single-day fall this year. The S&P/NZX 50 Index began declining at lunchtime and closed at 13,580.29, down 137.81 points or 1% after reaching a morning high of 13,737.17. There were 68 gainers and 73 decliners on the main board with 33.6 million shares worth $184.3m changing hands.

Counting China as its main market for infant milk formula, a2 Milk declined $1.23, or 11.15%, to $9.80 on trade worth $4m, after hitting $11 on Friday. China’s National Bureau of Statistics reported that the birth rate fell to 5.63 births per 1,000 people in 2025, below the 2023 low of 6.39 per 1,000. There was a slight increase in births in 2024. It meant that 7.9 million babies were born last year against the United Nations estimate of 8.7 million.

Trading in a2 Milk was paused on the Australian stock exchange while the company prepared a statement, but not in NZ. A2 Milk reports its first-half financial result on Feb 16.

Leading stocks Ebos Group, down 35c to $26.11, and Fisher and Paykel Healthcare, down 53c to $38.63, also led the local market lower. There was heavy trading in Ebos – 3.44m shares worth $89.43m. Ebos has fallen from $41.25 on Aug 21.

Mainfreight was down 69c to $68.30; Summerset eased 14c to $12.26; Fletcher Building shed 9c or 2.31% to $3.80; Vista Group declined 5c or 2.22% to $2.20; and Michael Hill decreased 1.5c or 3.16% to 46c. Oceania Healthcare dipped 2c or 2.27% to 86c; Winton Land was down 4c or 1.83% to $2.15; Scott Technology eased 7c or 2.41% to $2.83; and Blackpearl Group declined 3c or 3% to 97c. Freightways was up 34c or 2.41% to $14.42; NZME increased 3.5c or 3.03% to $1.19; NZX gained 4.5c or 2.95% to $1.57; AFT Pharmaceuticals collected 7c or 1.88% to $3.79; and 2 Cheap Cars added 2c or 3.08% to 67c. Santana Minerals continued a strong run, gaining 7c or 5.53% to $1.33; Hallenstein Glasson was up 12c to $9.82; and Third Age Health rebounded 11c or 2.48% to $4.54.

The local market is looking ahead to the release of the December quarter consumers price index. ANZ Research said annual headline inflation is expected to remain unchanged at 3% as non-tradable inflation continues its gradual decline and tradable inflation lifts slightly. That’s higher than the Reserve Bank’s monetary policy committee forecast in November of 2.7% and its previous forecast of 2.9%, ANZ said.

Meanwhile, China’s economy grew 5% last year – in line with the government’s annual goal of around 5% – and the expansion was buoyed by a surge in Chinese exports that offset trade tensions with the US and weak consumption at home. China had a record US$1.2 trillion (NZ$2t) trade surplus despite US President Donald Trump’s on-again, off-again trade war with the world’s second-largest economy. But the data also showed an economic slowdown in the fourth quarter, with the country recording only 4.5% growth from a year earlier – the slowest quarterly increase since the end of 2022. China’s population is now 1.4 billion after declining 3.39m last year and still the world’s second-largest behind India.

Source: Business Desk

Ahead of the local open SPI futures were 34 points lower at 8856.

- close [Morningstar with AAP]: Australia's share market has slipped lower despite a fresh record for gold after US President Donald Trump threatened to impose tariffs on European nations for not bowing to his ambitions for Greenland.

The S&P/ASX200 fell 29.2 points on Monday, down 0.33 per cent, to 8,874.7, as the broader All Ordinaries lost 31.6 points, or 0.34 per cent, to 9,195.1.

The dip was relatively minor compared to what futures indicated for US and European markets, but reignited global trade tensions will have knock-on effects for global equities and could weaken confidence in US trade deals struck in 2025.

"Obviously acting out to greater political risk and the return of trade uncertainty," Capital.com senior market analyst Kyle Rodda told AAP.

"Even if this does just remain a US issue, it's going to have an impact on growth at the margins, and that's something that will be negative for an economy like Australia and a market like the ASX200."

Safe-haven buying helped drive gold to a new peak of $US4,690.80 ($A7,009.30) an ounce, buoying ASX-listed miners such as Northern Star and Evolution, which each rallied more than three per cent.

More than two in five Australian retail investors already have exposure to gold, but the precious metal's record-breaking run in 2025 meant it was not entering the new year as an overlooked asset, according to eToro market analyst Zavier Wong.

"That means the question is how high prices could rise if uncertainty persists," Mr Wong said.

"The chances of seeing 60 per cent or more gains again this year are unlikely, but another positive year isn't."

Soaring gold stocks helped lift the raw materials sector 0.4 per cent, one of only three segments to end the session higher, with energy stocks up 0.2 per cent and utilities gaining one per cent, tracking with strength in APA, Origin and AGL.

Catalyst Metals beat out the rest of the top-200, up more than seven per cent after discovering a new gold deposit below an existing open-cut mine in WA.

All big four banks traded lower, led by a one per cent drop in NAB shares, as financials stocks faded 0.6 per cent.

ASX-listed tech stocks underperformed the broader market, down 2.5 per cent after a weak lead on Wall Street's tech-heavy Nasdaq on Friday, although NextDC carved a decent boost after clearing a construction hurdle for a planned data centre in Port Melbourne.

Consumer-facing stocks were under pressure, with discretionaries down almost 0.8 per cent and staples slipping 0.6 per cent.

A2 Milk was placed in a trading halt after tanking more than 10 per cent following news of a drop in China's birth rate. It was the top-200's weakest performer.??

The risk-off sentiment weighed on cryptocurrency Bitcoin, which slumped more than three per cent on Monday to $US92,580 ($A138,250).

The Australian dollar is buying 66.92 US cents, down from 67.02 US cents on Friday at 5pm.

Looking ahead, the statistics bureau will release Australian labour force data on Thursday.

However, it is unlikely to garner as much attention as the December quarter inflation print the following week, which will set the tone for the Reserve Bank's road ahead on interest rates.

ON THE ASX:

The S&P/ASX200 fell 29.4 points, or 0.33 per cent, to 8,874.5

The broader All Ordinaries dipped by 31.8 points, or 0.34 per cent, to 9,194.9

The NZX 50 added 13.51 points (0.10%) to 13593.8

Companies commencing Ex-Dividend Trading Today (ASX 300):

BlueScope Steel Limited

[Morningstar with Dow Jones]:

U.S. stocks ended lower. The DJIA slipped 0.2% to 49,359.33, the S&P 500 declined 0.1% to 6,940.01 and the Nasdaq fell 0.1% to 23,515.39.

Among S&P 500 companies, the top three gainers were Super Micro Computer Inc SMCI surging 10.98%, Micron Technology Inc MU jumped 7.74%, and Moderna Inc MRNA lifted 6.30%.

The biggest decliners were Constellation Energy Corp CEG which dropped 9.82%, Vistra Corp VST fell 7.48%, and Amcor PLC AMCR lost 7.34%.

Asia

Chinese shares closed higher. The benchmark Shanghai Composite Index gained 0.3% to 4,114.00 and the Shenzhen Composite Index added 0.5% to 2,700.08.

Hong Kong shares ended lower. The benchmark Hang Seng Index fell 1% to 26,563.90.

Japanese shares ended lower. The Nikkei Stock Average declined 0.7% to 53,583.57.

India shares ended lower. The BSE SENSEX slipped 0.4% to 83,246.18.

Europe

Stocks in the U.K. finished lower. The FTSE 100 Index declined 0.4% to 10,195.35. In Europe, shares closed lower. The Germany's DAX fell 1.3% to 24,959.06, and the France's CAC 40 dropped 1.8% to 8,112.02