NZX 50 Slips from Record High, Ends 0.5% Lower

The NZX 50 dropped 62 points, or 0.5%, to close at 13,723 on Monday, mainly weighed down by losses in the consumer staples, consumer discretionary, real estate, and tech sectors. Traders took profits after the index hit a record high in the previous session, with the market resuming after Friday's holiday closure and tracking a decline in US futures ahead of the earnings season. Rising oil prices due to the escalating conflict in the Middle East also weighed on sentiment, as inflation concerns fueled expectations of further interest rate hikes. Investors also anticipated the release of US inflation data, along with key Chinese economic data, including Q2 GDP, due later this week. However, fresh domestic data helped limit the decline, as New Zealand's private sector recorded its strongest growth since December 2025. Delegat Group plunged 4.2%, A2 Milk fell 2.3%, Freightways Group shed 1.4%, Australian Foundation Investment dropped 1.0%, and Fisher & Paykel fell 0.8%.

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.