NZX50 sinks as war breaks out in Middle East; oil soars

New Zealand’s S&P/NZX 50 index dropped at the start of a global rout after US President Donald Trump’s strikes on Iran aimed at toppling the regime triggered a wave of attacks across the Middle East, prompting investors to flee riskier assets in the latest bout of geopolitical instability.

Transport and tourism companies were among the hardest hit on the local bourse, with Tourism Holdings, Napier Port Holdings and Serko among those at the bottom of the leaderboard as Brent crude oil prices surged, although would-be miners such as Santana Minerals and Rua Gold didn’t benefit from the advancing gold price in the same way as Australian-listed Newmont.

Michael Hill International was one of the few companies to gain on New Zealand’s bourse after the jewellery chain reported a 29% jump in like-for-like first-half earnings, while Bremworth rallied as interests associated with scourer WoolWorks’ owner David Ferrier built up a 10% stake in the listed carpetmaker.

Meanwhile, members of a2 Milk Co’s executive team sold up to half of their shares issued before 2024, largely to cover tax obligations.