NZX 50 Hits Over 2-Month High on US-Iran Peace Deal

The NZX 50 rose 85 points, or 0.6%, to 13,479 in early Monday trading, extending gains from the previous session after news that the US and Iran had reached a peace deal, with the signing set for Friday. The broader index hovered near its highest level since March 6, mainly supported by consumer staples, financials, and consumer discretionary stocks. The latest data also lifted sentiment, with New Zealand card spending rebounding in May. However, gains were capped after New Zealand's private sector activity contracted at the fastest pace in eleven months, as the services sector shrank for the fourth consecutive month while manufacturing recorded its first contraction in 11 months. Traders also awaited this week's release of New Zealand's Q1 GDP data and the Fed's monetary policy decision. Among the early gainers were A2 Milk (4.5%), Ebos Group (4.2%), AFT Pharmaceuticals (1.6%), Freightways Group (1.1%), Infratil (1.1%), and Turners Automotive Group (1.2%).

The NZX 50 rose 192 points, or 1.5%, to close at 13,394 on Friday, erasing losses from the previous session and rebounding from its lowest level in over two weeks, reached a day earlier, with most sectors trading in the green, led by consumer staples stocks. The consumer staples sector surged 6.7%, mainly supported by a jump in A2 Milk shares, which rose 10.5%. The broader index hit its highest level since March 6, tracking a rally on Wall Street on Thursday amid easing tensions in the Middle East. However, the latest data capped gains as New Zealand's manufacturing sector contracted for the first time in 11 months in May, amid rising oil prices. Traders also anticipated next week's release of New Zealand's Q1 GDP data and the Fed's monetary policy decision. Other notable gainers included Ebos Group (3.6%), Turners Automotive Group (2.3%), Fisher & Paykel Healthcare (1.7%), and Mainfreight (1.6%). For the week, the index gained 1.8%, after falling in the prior week.

The NZX 50 climbed 54 points, or 0.4%, to 13,256 in Friday morning trade, erasing losses from the previous session and rebounding from its lowest level in over two weeks, reached a day earlier, tracking a rise on Wall Street overnight amid easing tensions in the Middle East and a rally in tech shares. Almost all sectors traded in the green, including financials, energy, and materials. However, the latest data capped gains as New Zealand's manufacturing sector contracted for the first time in 11 months, amid rising oil prices due to the Middle East conflict. Traders also anticipated the release of New Zealand's Q1 GDP and May trade balance data, as well as the Fed's monetary policy decision next week. Among early gainers were Infratil (1.6%), Contact Energy (1.1%), A2 Milk (0.8%), Ebos Group (0.7%), and Mainfreight (0.4%). For the week, the index rose 0.3%, after falling in the previous week.