NZX 50 Extends Losses, Ends 0.2% Lower

The NZX 50 fell 30 points, or 0.2%, to close at 13,363 on Thursday, extending losses from the prior session, mainly weighed down by utilities, consumer discretionary, and industrials. The broader index tracked a decline on Wall Street overnight after the Fed held interest rates steady and signaled the possibility of rate hikes this year. Wednesday's data also continued to pressure sentiment, as New Zealand's consumer morale fell to its lowest level since 2023 in Q2, while the Q1 current account deficit widened from the same period a year earlier. However, fresh data helped cap the fall, as New Zealand's GDP growth accelerated to 0.8% qoq in Q1, while annual growth held steady at 1.5%. Reports that the US and Iran had digitally signed an interim peace agreement also boosted sentiment, as lower oil prices eased concerns over inflationary pressures. Among notable losses were Mainfreight (-2.8%), AFT Pharmaceuticals (-1.7%), Westpac Banking Corp. (-1.6%), and South Port NZ (-1.1%).

The NZX 50 dropped 30 points, or 0.2%, to 13,363 in Thursday morning trade, extending losses from the previous session and tracking a decline on Wall Street overnight after the Fed kept interest rates steady and signaled the possibility of rate hikes this year. Wednesday's data also continued to pressure sentiment, as New Zealand's consumer confidence fell to its lowest level since 2023 in Q2, while the Q1 current account deficit widened from the same period a year earlier. However, the latest data helped cap the fall, as New Zealand's GDP growth accelerated to 0.8% qoq in Q1, while annual growth held steady at 1.5%. Reports that the US and Iran plan to sign an agreement to end the war also limited losses, as lower oil prices eased concerns over inflationary pressures. Energy, materials, and industrial stocks mainly weighed on the index, with notable losses from Contact Energy (-1.2%), Freightways Group (-0.8%), AFT Pharmaceuticals (-0.7%), and Auckland International Airport (-0.5%).

The NZX 50 fell 33 points, or 0.3%, to close at 13,393 on Wednesday, erasing gains from the previous session, as traders remained cautious ahead of New Zealand's Q1 GDP data and the Fed's monetary policy decision. Fresh data also pressured sentiment, as New Zealand's consumer confidence fell to its lowest level since 2023 in Q2, weighed by rising fuel and other living costs, while the Q1 current account gap widened from the same period a year earlier. The broader index declined from its highest level since March 6, reached a day earlier, tracking a fall in Wall Street's Nasdaq and S&P 500 indexes overnight amid a pullback in AI-related stocks. Technology stocks, materials, utilities, financials, and communication services mainly weighed on the index, with notable losses from Delegat Group (-2.6%), Hallenstein Glasson (-2.5%), and Mainfreight (-2.0%), while Ebos Group, Infratil, and Summerset Group each fell 1.3%, and ANZ Group declined 0.9%.