NZX 50 Extends Gains to Start the Week

The NZX 50 climbed 23 points, or 0.2%, to 13,642 in Monday morning deals, extending gains from the previous session, hitting its highest level since February 27 and tracking a rise in US futures as Wall Street looked to extend its rally after the Dow Jones posted a record high. Easing oil prices also fueled 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 last week, while traders anticipated the release of the Fed meeting minutes due this week. However, traders remained cautious ahead of the RBNZ's monetary policy decision on Wednesday, with the market expecting the central bank to raise its policy rate by 25 bps to 2.5%. Financials, energy, materials, and consumer staples mainly drove the index, with notable gains from Infratil (3.0%), Vulcan Steel (1.9%), Delegat Group (1.5%), Chorus (1.0%), and A2 Milk (0.9%).

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.