NZX 50 Reverses Morning Gains, but Posts Monthly Gain

New Zealand's stocks dropped 64 points, or 0.5%, to 13,699 on Friday, extending losses from the previous session, as traders continued profit-taking after the index hit a third consecutive record high, mainly weighed down by communication services, consumer staples, and real estate. A rebound in the global technology sector was offset by a contraction in China's manufacturing sector, New Zealand's top trading partner. Traders were also cautious ahead of the release of New Zealand's unemployment data due next week. However, the latest data helped limit the decline, as New Zealand's consumer confidence hit a five-month high, while moderating oil prices eased inflation concerns and tempered expectations of an interest rate hike. Among the worst performers were A2 Milk (-2.6%), Ryman Healthcare (-2.3%), Chorus (-2.0%), and Ebos Group (-1.0%). For the week, the index fell 0.2%, while posting a 0.6% increase for the month, marking the sixth straight monthly gain.

New Zealand's stocks climbed 92 points, or 0.7%, to 13,854 in Friday morning trade after retreating in the previous session, mainly buoyed by financials, communication services, and real estate. The broader index rebounded from a more than one-week low touched a day earlier, tracking a rally on Wall Street overnight amid a rebound in technology stocks. Fresh data also lifted sentiment, as New Zealand's consumer confidence hit a five-month high. Moderating oil prices also fueled sentiment, easing inflation concerns and tempering expectations of an interest rate hike. However, traders awaited the release of China's PMI data due later today and trade data due next week. Caution also prevailed ahead of the release of New Zealand's unemployment data due next week. Among the early gainers were Infratil (2.1%), Meridian Energy (1.8%), Fisher & Paykel (1.2%), and Ebos Group (1.0%). For the week, the index is heading for a 0.6% gain, while posting a 1.7% increase for the month.

New Zealand's stocks fell 214 points, or 1.5%, to close at 13,763 on Thursday, mainly weighed down by financials, healthcare, consumer staples, communication services, and materials, as traders took profit after the index posted a third consecutive record high. The broader index touched a more than one-week low, tracking a decline on Wall Street overnight after the Fed maintained interest rates. Traders anticipated the release of China's PMI, due on Friday, as investors monitored economic conditions in New Zealand's top trading partner amid uncertainty over the global outlook. A positive reading on New Zealand business confidence prevented the index from falling further, as sentiment rose to its highest level in five months, while moderating oil prices eased inflation concerns and expectations of an interest rate hike. Among the bottom performers were Vulcan Steel (-6.1%), Ryman Healthcare (-4.3%), A2 Milk (-3.4%), Fisher & Paykel (-2.4%), and Auckland International Airport (-1.9%).