NZX 50 Ends at Record High, Posts 2nd Straight Weekly Gain

The NZX 50 rose 120 points, or 0.9%, to close at a record high of 13,786 on Thursday, recovering from a decline in the previous session, mainly buoyed by gains in financials, industrials, and healthcare. Fresh data boosted sentiment, as New Zealand's manufacturing sector recorded its strongest growth since July 2021 despite facing high fuel prices. However, traders continued to assess Wednesday's RBNZ decision to raise interest rates by 25 bps and signal further tightening ahead to bring inflation back to target. Rising oil prices also capped gains, as inflation concerns raised expectations of further interest rate hikes. Fletcher Building surged 5.6% as the company raised its full-year earnings forecast and reported stronger-than-expected sales; Infratil jumped 3.1%, Ebos Group rose 1.8%, and Fisher & Paykel gained 1.2%. For the week, the index rose 1.2%, marking its second consecutive weekly advance. The market will be closed on Friday for a local holiday.

The NZX 50 was almost flat, trading around 13,666 in Thursday morning trade after retreating in the previous session, as gains in communication services and materials offset declines in energy and financials. Traders continued to assess Wednesday's RBNZ decision to raise interest rates by 25 bps to 2.5% and signal further tightening ahead to bring inflation back to target. They also studied the minutes of the Fed's meeting, which showed policymakers were divided on the future path of interest rates, though most participants indicated that some further policy firming would likely be warranted to return inflation to the 2% target. Caution also prevailed amid rising oil prices, as inflation concerns raised expectations of further interest rate hikes. On the positive side, New Zealand's manufacturing sector recorded its strongest growth since July 2021. Chorus rose 1.8%, Summerset Group climbed 1.4%, while AFT Pharmaceuticals and Channel Infrastructure shed 2.1% and 2.2%, respectively.

The NZX 50 fell 98 points, or 0.7%, to close at 13,665 on Wednesday, after being flat in the previous session, pulling back from a record high reached over the previous two consecutive sessions, following the RBNZ's decision to raise interest rates by 25 bps to 2.5%. The central bank raised its cash rate for the first time in more than three years and signalled further tightening ahead to bring inflation back to target. Traders also anticipated the release of the Fed's June meeting minutes for guidance on the outlook for interest rates. Rising oil prices further pressured sentiment, as inflation concerns raised expectations of further interest rate hikes. The broader index tracked Wall Street's overnight decline, amid a sell-off in chipmaker stocks. Healthcare, financials, technology, and communication services mainly weighed on the index, with notable losses from Ventia Services Group (-2.8%), Fisher & Paykel (-2.6%), Infratil (-2.3%), and Freightways Group (-1.8%).