NZX 50 Erases Early Losses, Ends Week Higher

The NZX 50 rose 36 points, or 0.3%, to close at 13,618 on Friday, reversing morning weakness and erasing losses from the previous two sessions, mainly buoyed by the consumer staples and healthcare sectors. Easing oil prices lifted sentiment as inflation concerns subsided, reducing expectations of an interest rate hike. The rally was also supported by easing concerns about a Fed rate hike following the release of the jobs data. The latest data also supported the index, as consumer confidence in New Zealand hit a three-month high in June, while business confidence reached its highest level since February. However, traders remained cautious ahead of the RBNZ's monetary policy decision next week amid higher global oil prices during June. A2 Milk rose 2.7%, Fletcher Building increased 2.4%, Ebos Group gained 2.3%, while Fisher & Paykel, Mainfreight, and Summerset Group each advanced 1.7%. For the week, the index gained 0.9% after being flat the previous week.

The NZX 50 fell 13 points, or 0.1%, to 13,568 in Friday morning trade, declining for the third consecutive session, mainly weighed down by the financial, industrial, and technology sectors. Traders were cautious ahead of the RBNZ's monetary policy decision next week while anticipating the release of China's inflation data, amid rising global oil prices during June. However, easing oil prices helped cap the losses as inflation concerns subsided, reducing expectations of an interest rate hike. The latest data also limited the decline, as consumer confidence in New Zealand hit a three-month high in June, following an improvement in business mood. The decline was also limited by easing concerns about a Fed rate hike following the release of the jobs data. Among the early losers were Mercury NZ (-1.1%), Fletcher Building (-0.9%), Freightways Group (-0.4%), Infratil (-0.4%), and ANZ Group (-0.3%). However, the index is heading for a 0.6% weekly gain after being flat in the previous week.

The NZX 50 fell 28 points, or 0.2%, to close at 13,582 on Thursday, extending losses from the previous session, mainly driven by the communication services, energy, consumer staples, and technology sectors. Communication services fell 2.8%, with Spark New Zealand, New Zealand's largest telecommunications and digital services company, slumping 3.7%, while Chorus, New Zealand's largest telecommunications network operator, saw its share price drop 2.5%. The broader index tracked a decline on Wall Street overnight as traders reassessed the sustainability of the AI-driven rally. Traders anticipated the release of New Zealand's consumer spending data for May, due on Friday. However, easing oil prices helped limit the losses as inflation concerns subsided, reducing expectations of an interest rate hike. Other losers included Ebos Group (-2.7%) and A2 Milk (-1.3%), while Infratil and Hallenstein Glasson each dropped 0.8%. On the data front, New Zealand's building permits fell 4.0% in May.