NZX 50 Ends Nearly Flat Ahead of Inflation Data

The NZX 50 was almost flat, trading around 13,697 in Tuesday morning trade, remaining muted for the second straight session, as gains in healthcare, technology, and financials offset declines in communication services, industrials, and consumer staples. Traders assessed fresh data, as inflation accelerated in Q2 to the highest level since Q4 2023, while also evaluating its impact on the central bank's interest rate decision at the upcoming meeting following a 25-bps rate hike earlier this month. Caution also prevailed amid persistently high oil prices due to escalating tensions in the Middle East, as inflation concerns fueled expectations of further interest rate hikes. RBNZ Chief Economist Paul Conway recently warned that sticky inflation could prompt further interest rate hikes. Ebos Group rose 0.6%, Fisher & Paykel Healthcare gained 0.8%, and Mercury NZ climbed 0.6%, while Chorus, Colonial Motor Company, and Auckland International Airport fell 2.3%, 1.4%, and 1.3%, respectively

The NZX 50 was almost flat, trading around 13,693 at Monday's close, after gaining in the previous session, as gains in consumer staples, communication services, and real estate offset declines in healthcare, financials, and tech sectors. Traders were cautious ahead of the release of Q2 inflation data due on Tuesday amid elevated oil prices. Caution was also built amid persistently high oil prices following US strikes on Iran, as inflation concerns fueled expectations of further interest rate hikes. RBNZ Chief Economist Paul Conway recently warned that sticky inflation could prompt further interest rate hikes. On the data front, New Zealand's trade surplus narrowed to NZD 0.02 billion in June from NZD 0.2 billion in the same month a year earlier, with exports rising less than imports. A2 Milk advanced 2.4%, Auckland International Airport climbed 1.3%, and AFT Pharmaceuticals rose 0.5%, while Ebos Group, ANZ Group, and Fisher & Paykel fell by 0.8%, 0.7%, and 0.6%, respectively.

The NZX 50 dropped 69 points, or 0.5%, to 13,626 in Monday morning trade, halting the gains from the previous session, tracking a decline in US futures after Wall Street closed in the red on Friday, weighed down by a selloff in chipmakers and the escalating Middle East conflict. However, persistently high oil prices following US strikes on Iran also pressured sentiment as inflation concerns fueled expectations of further interest rate hikes. Traders remained cautious ahead of the release of Q2 inflation data due on Tuesday amid elevated oil prices. On the data front, New Zealand's trade surplus narrowed to NZD 0.02 billion in June from NZD 0.2 billion in the same month a year earlier, with exports rising less than imports. Healthcare, utilities, real estate, and financials mainly weighed on the index, with notable losses from Fisher & Paykel Healthcare (-1.8%), F&C Investment (-1.8%), South Port NZ (-1.4%), Channel Infrastructure (-0.9%), and Chorus (-0.9%).