New Zealand Stocks End 0.4% Lower

The NZX 50 fell 51 points, or 0.4%, to close at 13,202 on Thursday, halting gains from the previous two sessions and marking its lowest level in over two weeks, after retreating from its highest level since May 7, reached a day earlier. The broader index tracked a downbeat session on Wall Street Wednesday as escalating tensions in the Middle East drove oil prices higher. Concerns over the US May inflation figure also pressured sentiment, as inflation accelerated to its highest level in three years in May, reinforcing expectations that the Fed will hold interest rates steady for longer. Investors remained wary ahead of the release of New Zealand's business PMI for May, due on Friday, after the index recorded its slowest growth in seven months in April. Financials, materials, and industrials stocks mainly weighed on the index, with notable losers including Infratil (-1.9%), Mainfreight (-1.8%), Ebos Group (-1.2%), Fletcher Building (-1.0%), and Westpac Banking Corp. (-0.9%).

The NZX 50 fell 45 points, or 0.3%, to 13,208 in Thursday morning deals, erasing gains from the previous two sessions and retreating from its highest level since May 7, reached a day earlier, tracking a fall on Wall Street overnight as renewed tensions in the Middle East drove oil prices higher. US inflation data also pressured sentiment, as inflation accelerated to its highest level in three years in May, reinforcing expectations that the Fed will hold interest rates steady at its upcoming meeting. Investors remained wary ahead of the release of New Zealand's business PMI for May, due on Friday, after the index recorded its slowest growth in seven months in April. Most sectors traded in the red, including financials, healthcare, and utility stocks. Among early losers were Mainfreight (-1.5%), Fisher & Paykel Healthcare (-0.9%), Freightways Group (-0.8%), ANZ Group (-0.7%), Infratil (-0.5%), and Ebos Group (-0.4%).

The NZX 50 advanced 50 points, or 0.4%, to close at 13,254 on Wednesday, reversing morning weakness, extending gains from the previous session, and reaching its highest level since May 7, mainly buoyed by communication services, energy, and consumer discretionary stocks. The latest data from China also lifted sentiment, as consumer inflation remained steady, albeit slightly below expectations, while producer prices rose at their fastest pace in nearly four years amid rising oil prices. However, traders remained cautious ahead of US inflation data, which could guide the Federal Reserve's monetary policy at its upcoming meeting. Meanwhile, accelerating oil prices limited gains after the US military reportedly launched strikes against Iran in retaliation for the downing of an American helicopter. Among the top performers were A2 Milk (2.9%), Skellerup Holdings (2.3%), South Port NZ (2.3%), Freightways Group (2.2%), Fisher & Paykel (1.0%), Chorus (0.9%), and Port of Tauranga (0.9%).