NZX 50 Erases Morning Gains to End 0.3% Lower

The NZX 50 dropped 33 points, or 0.3%, to close at 13,361 on Monday, reversing its morning strength and erasing gains from the previous session, weighed down by disappointing economic data. Fresh data showed that New Zealand's private sector activity contracted at the fastest pace in 11 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. The broader index retreated from its highest level since March 6, reached in the previous session, due mainly to declines in healthcare, utilities, and communication services. However, losses were limited by positive data on New Zealand's card spending, which rebounded in May. Among the biggest laggards were Fisher & Paykel (-3.3%), Meridian Energy (-2.5%), Ebos Group (-1.7%), Freightways Group (-1.5%), and Contact Energy (-1.4%).

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.