New Zealand Stocks Pull Back from Record High

The NZX 50 climbed 76 points, or 0.6%, to close at 12,902 on Thursday, easing from strong morning gains but halting losses from the prior session, as traders expect the RBNZ to keep the Official Cash Rate on hold next week despite rising oil prices. The central bank is expected to hold the interest rate for a 2nd straight meeting at 2.25%, the lowest level since mid-2022. Traders also cheered as the prime minister reshuffled his ministerial lineup. Most sectors traded in the green, including energy, consumer staples, and financials. However, US President Trump's remarks that Washington would strike Iran “extremely hard” over the next two to three weeks capped the gains. Top gainers were Ebos Group (4.7%), A2 Milk (2.2%), Contact Energy (1.7%), and Hallenstein Glasson (1.4%). However, the index fell by 0.3% over the week, marking its 5th consecutive decline amid persistent concerns about Middle East tensions. The market will be closed for two days for Good Friday, reopening on Tuesday.

The NZX 50 added 116 points, or 0.9%, to 12,942 in morning trade on Thursday, halting losses from the previous session, following an upbeat session on Wall Street overnight due to hopes of Middle East de-escalation. Investors now await US President Trump's speech on the Iran war later today. Almost all sectors traded in the green, including consumer staples, financials, and communication services. However, traders are anticipating the RBNZ monetary policy meeting next week, with the market expecting the central bank to hold the interest rate at 2.25% and assess New Zealand PM Luxon's cabinet reshuffle. Among early gainers were Ebos Group (2.0%), Hallenstein Glasson (1.8%), Chorus (1.6%), Freightways Group (1.3%), and Mainfreight (1.0%). For the week, the index is set to be flat after a four-week decline, amid easing Middle East tensions. The market will be closed tomorrow for the Good Friday holiday.

The NZX 50 dropped 86 points, or 0.7%, to close at 12,826 on Wednesday, reversing earlier gains after rising in the previous session, as investors remained cautious ahead of the Reserve Bank of New Zealand meeting next week amid uncertainty over global conditions caused by the war. Market sentiment was further pressured by a slowdown in Chinese factory activity, New Zealand's top trading partner. Still, a rise in U.S. futures after all three major indexes surged during the regular session, amid renewed Middle East de-escalation hopes, helped cap the losses. Consumer staples, utilities, and real estate led the declines, though gains in energy, materials, and industrials also limited the downside. The top losers were A2 Milk (-3.5%), Infratil (-3.0%), Ryman Healthcare (-2.4%), and Ebos Group (-1.3%).