NZX 50 Pulls Back from Record High

The NZX 50 dropped 64 points, or 0.5%, to 13,721 in Monday morning trade as traders took profits after the index hit a record high in the previous session, with the market resuming after Friday's holiday closure. Escalating conflict in the Middle East also weighed on sentiment amid rising oil prices, as inflation concerns fueled expectations of further interest rate hikes. Investors also awaited the release of US inflation data, along with key Chinese economic data, including Q2 GDP. However, fresh domestic data helped limit the decline, as New Zealand's private sector recorded its strongest growth since December 2025. The services sector returned to expansion, while manufacturing grew at its fastest pace since July 2021. Consumer staples, communication services, and real estate stocks led the declines, with A2 Milk falling 3.4% following weaker Global Dairy Trade auction results. Other early decliners included Chorus (-1.9%), Delegat Group (-1.9%), and Fletcher Building (-1.7%).

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.