NZX 50 Extends Gains in Morning Trade

The NZX 50 rose 41 points, or 0.3%, to 13,269 in Thursday morning trade, extending gains from the previous two sessions, hitting its highest level since May 7, and tracking a rally in the S&P and Dow Jones on Wall Street overnight amid hopes of a US-Iran peace deal. Decelerating oil prices also lifted sentiment by easing inflation fears, as New Zealand heavily relies on imported fuel. A statement from a top central banker today that how high interest rates will go depends on how much weaker demand from higher energy costs would hold back other price increases also supported sentiment, after the RBNZ kept interest rates unchanged on Wednesday. The governor of the RBNZ, Anna Breman, told Morning Report that the official cash rate is expected to rise to 3% or 3.25% in the future. Industrials, healthcare, and tech sectors mainly drove the index, with notable gains from Mainfreight (7.4%), Gentrack Group (2.4%), South Port NZ (1.7%), Ebos Group (0.8%), and Henderson Far East (0.8%).

The NZX 50 climbed 158 points, or 1.2% to close at 13,228 on Wednesday, hitting nearly a three-week high after the central bank kept interest rates unchanged for a third consecutive meeting. However, the decision revealed a more hawkish tone than anticipated, with policymakers evenly split on whether rates should be raised. The bank also signaled that rates may need to rise sooner and by a greater extent than expected, citing mounting inflation risks from higher energy prices. Markets increased bets on a July rate hike, with the odds of a 25-bp move rising to around 75%, while year-end rate expectations climbed to 3.0%. Meanwhile, sentiment remained supported by hopes of a breakthrough in ongoing US-Iran peace talks, despite recent US military action in Tehran. Healthcare stocks led the advance, with heavyweights Fisher & Paykel and Ryman up 2.3% and 3.6%, respectively. Infratil, an infrastructure investment company, also surged 5.8% after posting a net surplus for the fiscal year.

The NZX 50 rose 50 points, or 0.4% to 13,100 on Wednesday morning trade, extending gains from the previous session to hit a fresh two-week high, mainly supported by advances in healthcare, financial, and real estate stocks. In the healthcare sector, heavyweight Fisher & Paykel Healthcare extended gains, up over 1% to a one-month high, after reporting higher annual net profit. Infratil, an infrastructure investment company, also climbed 0.9% after posting a net surplus for the fiscal year, compared to a loss a year earlier. Additionally, real estate developers traded in the green, including Kiwi Property (+0.5%), Argosy Property (+1.5%), and Stride Property Group (+0.9%). Investors now await the monetary policy decision from the RBNZ later today, which is widely expected to keep rates unchanged, as well as the release of the government's 2026 budget. Elsewhere, optimism for a US-Iran peace deal, despite military strikes in the Persian Gulf, continued to support global risk sentiment.