NZX50 Starts Week Modestly Higher Amid Major Corporate Transactions and Headwinds

The New Zealand sharemarket started the week on a positive note as the benchmark NZX50 Index recorded a modest gain of 0.4% in morning trade on Monday, May 25, 2026, to sit at 13,033 points. This upward movement continues a recent positive trajectory for the local exchange, driven by strong performances from prominent heavyweights including Auckland International Airport Limited, Air New Zealand Limited, and Contact Energy Limited. The gains reflect a resilient short-term performance for the market despite a highly challenging economic environment characterised by elevated inflation and global geopolitical headwinds.

The daily rise of 0.4% extends a positive run of form for the benchmark index. Following the conclusion of trading on Friday, May 22, 2026, the New Zealand Exchange index recorded a 2.1% increase over the preceding five days, mirroring a 2.1% gain over the last one month. This movement pushed the index to its highest level since May 13, 2026, just before Monday's trade. Despite this encouraging short-term recovery, the longer-term outlook highlights the volatility experienced by investors over the past year. The index has recorded a 3.3% decline over the last six months, although it remains 3.9% higher over the past year. The market is still working to claw back losses incurred since reaching its all-time high of 13757.71 points in January 2026.

Corporate Leaders Drive Index Gains

The market's positive momentum on Monday was underpinned by key infrastructure and tourism-linked stocks. Auckland International Airport Limited saw its share price increase by +2% on May 25, 2026, contributing significantly to the wider index's upward path. As the main gateway to the country, the airport's performance remains a critical barometer of investor confidence in the broader travel and tourism sectors.

In tandem with the airport's gains, Air New Zealand Limited shares rose by +1% during the Monday session. This positive movement occurred despite the national carrier navigating a highly challenging operating environment. On May 14, 2026, the airline released a downgraded outlook for the full-year 2026 financial period, in which it anticipated a substantial pre-tax loss of between NZ$340 million and NZ$390 million. This downgrade was primarily attributed to the soaring cost of international fuel. Jet fuel prices pre-Middle East conflict sat at a manageable range of US$85-US$90 per barrel, but have since skyrocketed to between US$160-US$230 per barrel post-Middle East conflict. Despite these severe operational headwinds, the carrier's modest share price appreciation suggests that some of these negative impacts had already been factored in by the market.

Infratil Settles Contact Energy Share Divestment

Electricity generator Contact Energy Limited also recorded a +1% gain on Monday, a day that marked a significant milestone for its share registry. The upward movement coincided with the scheduled settlement of a massive block sale of its shares by infrastructure investment group .