NZX 50 Edges Lower, Eyes Modest Weekly Rise

The NZX 50 dropped 15 points, or 0.1%, to 12,889 on Friday morning deals, halting gains from the previous two sessions, mainly dragged down by energy, materials, and consumer discretionary stocks. Traders were cautious after fresh data showed New Zealand's consumer confidence plunged to its lowest level since May 2023 in April, following Thursday's data, which revealed business sentiment in the country fell into negative territory for the first time since August 2023. Traders also anticipated the release of unemployment data for Q1 2025, after the jobless rate hit its highest level since Q3 2015 in Q4 2025. However, a rally on Wall Street overnight capped the fall, mainly boosted by earnings reports from major tech stocks. Among early losers were Port of Tauranga (-1.2%), Meridian Energy (-0.5%), Auckland International Airport (-0.4%), Chorus (-0.3%), and Delegat Group (-0.3%). For the week, the index is heading for a 0.1% rise, the first increase in three weeks.

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.