NZX 50 Rebounds, Closes Up 0.4%

The NZX 50 climbed 50 points, or 0.4%, to close at 13,546 on Monday, reversing morning weakness after being flat in the previous session and hitting its highest level since March 4, mainly buoyed by gains in consumer non-durables, health technology, miscellaneous, and transportation. However, declines in utilities and communication services capped the gains. Traders also remained cautious ahead of the release of New Zealand's consumer and business confidence data for June, due later this week, as well as China's PMI data and US jobs data for June, which will help gauge the economic outlook in the world's largest and second-largest economies. Rising oil prices added to inflation concerns, further weighing on sentiment and raising expectations of an interest rate hike. Among the top gainers were A2 Milk (3.0%), Fisher & Paykel (2.0%), Mainfreight (1.8%), Gentrack Group (1.6%), Infratil (0.8%), and Auckland International Airport (0.8%).

The NZX 50 dropped 50 points, or 0.4%, to 13,445 in Monday morning trade, after being flat in the previous session, tracking a decline on Wall Street on Friday, with chipmakers leading the sell-off. Traders remained cautious ahead of the release of New Zealand's consumer and business confidence data for June, as both indicators remained subdued in May despite improving from a month earlier. Investors also anticipated the release of China's PMI data and US jobs data for June to help gauge the economic outlook in the world's largest and second-largest economies. Rising oil prices added to inflation concerns, further weighing on sentiment and raising expectations of an interest rate hike. Utilities, communication services, electronic technology, and financials mainly weighed on the index, with notable losses from Auckland International Airport (-1.1%), Meridian Energy (-1.0%), Freightways Group (-0.8%), Infratil (-0.7%), and Port of Tauranga (-0.3%).

The NZX 50 was little changed, closing at 13,495 on Friday after strengthening in the morning session, as gains in energy and technology stocks were offset by declines in materials and utilities. Easing oil prices further lifted sentiment as inflation concerns moderated, reducing expectations of an interest rate hike. However, traders remained cautious after US PCE inflation hit a three-year high, raising expectations that the Fed will hold interest rates higher for longer. Traders also anticipated New Zealand's consumer and business confidence data due next week, as well as China's PMI data and US jobs data for June. Freightways Group surged 4.3%, Channel Infrastructure rose 1.3%, and Ebos Group gained 1.0%, while Turners Automotive Group, Westpac Banking Corp, and Vulcan Steel fell 2.3%, 1.9%, and 1.6%, respectively. For the week, the index was flat after rising for the previous two weeks.