NZX 50 Pulls Back, Ends 0.6% Lower

The NZX 50 fell 74 points, or 0.6%, to close at 13,171 on Tuesday, after gaining in the previous session, as traders resumed activity following a holiday on Monday, amid uncertainty over US-Iran peace talks aimed at ending the war. The broader index pulled back from its highest level since May 7, reached on Friday, mainly weighed down by materials, financials, energy, and consumer discretionary stocks. Traders continued to assess comments from RBNZ Governor Anna Breman, who said last week that the Official Cash Rate is likely to rise sooner and more sharply than previously indicated. Caution also prevailed ahead of the release of US PMI and jobless claims figures due later this week. Among the biggest laggards were ANZ Group (-4.1%), Vulcan Steel (-3.6%), Infratil (-3.0%), Chorus (-2.3%), Westpac Banking Corp. (-1.8%), Australian Foundation Investment (-1.8%), F&C Investment (-1.7%), Hallenstein Glasson (-1.6%), and Fisher & Paykel (-1.3%).

The NZX 50 was almost flat, trading around 13,242 in Tuesday morning trade, after gaining in the previous session, as traders resumed activity following a holiday on Monday, with gains in energy, consumer discretionary, and utilities offset by declines in communication services, materials, and healthcare. The broader index pulled back from its highest level since May 7, reached on Friday, as traders continued to assess comments from RBNZ Governor Anna Breman, who said last week that the Official Cash Rate is likely to rise sooner and more sharply than previously indicated. Caution also prevailed ahead of the release of the US PMI and jobless claims figures due later this week. However, a rally on Wall Street overnight lifted sentiment, supported by optimism that the US and Iran will end the war. Ebos Group gained 1.6%, AFT Pharmaceuticals rose 1.3%, and Auckland International Airport climbed 1.0%, while Chorus and Fisher & Paykel fell 1.2% and 0.8%, respectively.

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.