NZX 50 Posts Monthly Gain, Ends 0.3% Higher

The NZX 50 rose 38 points, or 0.3%, to close at 13,245 on Friday, erasing losses from the previous session and marking its highest level since May 7, as a rally on Wall Street overnight lifted sentiment, buoyed by the extended US-Iran ceasefire. Fresh data also supported sentiment, as consumer mood improved from a near three-year low in April, while business morale returned to positive territory in May. However, traders continued to assess comments from Anna Breman, Governor of the RBNZ, who said today that the Official Cash Rate is likely to rise sooner and more sharply than previously indicated. Most sectors traded in the green, including real estate, industrials, and consumer discretionary. Among the top gainers were Briscoe Group (6.1%), Skellerup Holdings (3.9%), Mainfreight (3.4%), Fletcher Building (1.3%), Freightways Group (1.2%), and AnZ Group (1.0%). For the month, the index rose 2.0% after being flat in the prior month. The market will be closed on Monday for a holiday.

The NZX 50 rose 11 points, or 0.1%, to 13,217 in Friday morning trade, erasing losses from the previous session, as a rally on Wall Street overnight lifted sentiment, buoyed by the extended US-Iran ceasefire. Consumer confidence data for May also supported sentiment, as consumer mood improved from a near three-year low in April. However, traders continued to assess a statement from Anna Breman, who told Morning Report that the official cash rate is expected to rise to 3% or 3.25% in the future. Caution also prevailed ahead of the release of the May business outlook survey, after the indicator fell into negative territory in April for the first time since August 2023. Real estate, industrials, and consumer discretionary stocks mainly drove the index, with notable gains from Summerset Group (2.5%), Ebos Group (0.9%), Freightways Group (0.5%), and Contact Energy (0.5%). For the month, the index is heading for a 2.4% gain after being flat in the previous month.

The NZX 50 fell 22 points, or 0.2%, to close at 13,206 on Thursday, reversing morning gains and erasing advances from the prior day after touching its highest level since May 7 a day earlier, amid inflation concerns fueled by rising oil prices due to the escalating conflict in the Middle East. Traders also assessed a statement from a top central banker that how high interest rates will go depends on how much weaker demand from higher energy costs would hold back other price increases, 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. The decline was capped by forecasts of a narrower 2025/26 budget gap. Most sectors traded in the red, including materials, consumer discretionary, consumer staples, and financials, with notable losses from ANZ Group (-2.5%), A2 Milk (-2.1%), Chorus (-1.7%), Ebos Group (-1.6%), and Westpac Banking Corp. (-1.1%).