The NZX is the stock market of New Zealand, and it is small. ScreenerHero covers 105 NZX stocks, and only about 59 of them have a market cap above 100 million euros. That is less than one European mid-sized exchange such as Vienna or Lisbon.
Small does not mean uninteresting. The NZX concentrates in the kind of business many investors want: regulated utilities, airports, healthcare equipment and retirement villages. This guide covers what is listed, what to watch, and how to screen it.
What the NZX is made of
The headline benchmark is the S&P/NZX 50. The names that matter most:
- Fisher & Paykel Healthcare. A global maker of respiratory care equipment, and the exchange's best-known exporter.
- Auckland International Airport. A listed airport with a long-lived monopoly position.
- Infratil. A diversified infrastructure investor with stakes in data centres, renewable energy and airports.
- Spark New Zealand. The largest telecom operator.
- Meridian Energy, Contact Energy and Mercury. Electricity generators and retailers, known locally as "gentailers". Meridian is largely hydro.
- Mainfreight. A global logistics group that started in New Zealand.
- Ryman Healthcare. A retirement village operator.
- Fletcher Building. A construction materials group.
Several of these are dual listed, and many Australian companies also list in Wellington. About 54 companies trade on both the NZX and the ASX. In the screener you see each of them once, on its primary exchange.
Why investors look at New Zealand
Dividends. Utilities, telecom and property companies make up a large share of the market, and they pay out a high share of earnings. If you screen for income, start with the dividend screening guide and then check each yield against the payout ratio. A yield that is higher than earnings can support is a risk, not a feature.
Infrastructure-like businesses. An airport, a hydro generator and a telecom network have assets that are expensive to replicate. These businesses tend to have steady cash flow, high debt and sensitivity to interest rates.
A different economic cycle. The New Zealand economy is tied to agriculture, tourism and trade with China and Australia. It does not move in step with Europe or the US.
What to watch out for
A very small, concentrated market
Few stocks means few choices, and the largest companies carry most of the weight. Many of the 105 stocks are thinly traded. Check the average daily volume before you size a position.
Interest rate sensitivity
Utilities, property and airports carry debt and are valued off long-term discount rates. When rates rise, these stocks often fall even if earnings hold up. Look at net debt relative to EBITDA, using the approach in our leverage guide.
Foreign currency in the accounts
A few NZX companies report in another currency than the New Zealand dollar, such as Australian dollars. A revenue figure in one currency next to a share price in another produces wrong ratios. Check the reporting currency when you compare.
Regulation
Electricity pricing, airport charges and retirement village rules are all shaped by regulators. For these companies, a change in regulation matters more than a change in demand.