NZX 50 Turns Higher, Ends Up 1%

The NZX 50 rose 133 points, or 1.0%, to close at 12,903 on Thursday, reversing earlier losses in morning trade and extending gains from the previous session, with all sectors trading in the green, led by real estate. The broader index tracked gains in US futures following earnings reports from some major tech stocks. PMI data from China, New Zealand's top trading partner, also lifted sentiment, with a private survey showing factory activity on the mainland grew at its fastest pace since 2020, though official data indicated a slight easing while remaining stronger than expected. Traders also welcomed the RBNZ's efforts to enhance transparency in monetary policy decisions, beginning to publish individual votes cast by Monetary Policy Committee (MPC) members starting today. Among the top performers were Contact Energy (1.9%), Ebos Group (1.4%), F&C Investment (1.2%), ANZ Group (0.8%), and Fisher & Paykel Healthcare (0.8%). For the month, the index was flat.

The NZX 50 fell 19 points, or 0.2%, to 12,751 in Thursday morning trading, after edging up in the prior session, marking its lowest level since March 30, mainly driven by losses in financials, utilities, and communication services. Traders were cautious following the Fed's decision to hold interest rates steady. Investors continued to assess the statement from RBNZ Governor Anna Breman on Wednesday that the central bank remained focused on balancing inflation control while supporting economic growth. Traders also awaited the release of New Zealand's business confidence data for April, after it posted the weakest reading since July 2024 in March, as well as China's PMI later today to help guide the outlook for New Zealand's top trading partner. However, a rise in US futures on strong big tech earnings helped cap the decline. Among early losers were Freightways (-1.4%), Mainfreight (-0.9%), Infratil (-0.8%), and Delegat Group (-0.5%). For the month, the index is heading for a 1.2% fall.

The NZX 50 edged up 6 points, or 0.1%, to close at 12,770 on Wednesday, after being flat in the morning session and snapping a three-session losing streak, as the RBNZ reiterated its focus on balancing inflation control while supporting economic growth. RBNZ Governor Anna Breman said in a speech today that core inflation remained stable in Q1 within its target band of 1% to 3%. However, gains were capped as traders awaited the Fed’s interest rate decision later today, while a downbeat session on Wall Street overnight, amid signals of weakness in OpenAI and rising oil prices, weighed on sentiment. The broader index rebounded from its lowest level since March 30, reached a day earlier, supported by gains in healthcare, utilities, financials, and materials. Among gainers were Fisher & Paykel Healthcare (+1.5%), Contact Energy (+1.0%), Infratil (+0.5%), Turners Automotive Group (+0.5%), and Meridian Energy (+0.4%).