New Zealand Stocks Set for Weekly Losses

The NZX 50 dropped 23 points, or 0.2%, to 13,591 in Friday morning trade, retreating for the fifth consecutive session and remaining at its lowest level since July 2, tracking a decline on Wall Street overnight, with technology stocks leading the losses. Persistently high oil prices pressured sentiment, as inflation concerns fueled expectations of further interest rate hikes. Traders were cautious ahead of the release of Q2 inflation data due next Tuesday amid elevated oil prices. RBNZ Chief Economist Paul Conway recently warned that sticky inflation could prompt further interest rate hikes. However, moderation in food inflation capped the fall after fresh data showed that food inflation rose at the slowest pace in 16 months. Healthcare, technology, and materials stocks mainly weighed on the index, with notable losses from Scott Technology (-1.2%), Ryman Healthcare (-0.9%), Summerset Group (-0.8%), and Briscoe Group (-0.4%). For the week, the index is heading for a 1.4% fall.

The NZX 50 fell 20 points, or 0.1%, to 13,616 on Thursday, down for the fourth consecutive session and marking its lowest level since July 2, mainly weighed down by losses in communication services, energy, consumer staples, and financials. Investors continued to monitor developments in the Middle East conflict amid rising oil prices, as inflation concerns fueled expectations of further interest rate hikes. Traders were cautious ahead of the release of June food inflation data due on Friday after the figures accelerated in May. On Tuesday, RBNZ Chief Economist Paul Conway warned that sticky inflation, driven by recent Middle East supply shocks, could prompt further interest rate hikes. Disappointing data from China further pressured sentiment, as the country's economy grew at its slowest pace in 3-1/2 years. Among the biggest laggards were Summerset Group (-2.6%), Auckland International Airport (-1.4%), Scales Corporation (-1.2%), A2 Milk (-1.1%), and Hallenstein Glasson (-1.1%).

The NZX 50 dropped 19 points, or 0.1%, to 13,616 in Thursday morning deals, retreating for the fourth consecutive session, mainly weighed down by losses in technology, financials, and utilities. Traders were cautious ahead of the release of June food inflation data due on Friday after the figures accelerated in May. Investors also continued to monitor developments in the Middle East conflict, amid rising oil prices, as inflation concerns fueled expectations of further interest rate hikes. On Tuesday, RBNZ Chief Economist Paul Conway warned that sticky inflation, driven by recent Middle East supply shocks, could prompt further interest rate hikes. Caution also prevailed after disappointing data from China, New Zealand's top trading partner, showed that the country's economy grew at its slowest pace in 3-1/2 years. Port of Tauranga fell 1.2%, Auckland International Airport shed 0.7%, Henderson Far East Income dropped 0.7%, Ebos Group went down 0.4%, and Chorus declined 0.3%.