NZX Erases Losses, Posts 2nd Weekly Gain

New Zealand's stocks rose 29 points, or 0.2%, to close at 13,854 on Friday, reversing morning weakness and extending gains from the previous session, tracking a rise on Wall Street overnight as bets on a Fed interest rate hike at the September meeting eased following soft inflation data. Moderating oil prices also lifted sentiment as inflation concerns eased and expectations grew that the RBNZ would slow the pace of monetary policy tightening. The latest data also supported sentiment, as New Zealand's factory activity grew for the 21st consecutive month in July, though at a softer rate. However, traders were cautious ahead of food inflation data and China's interest rate decision due next week. Energy, tech, consumer discretionary, and industrials mainly drove the index, with notable gains including Colonial Motor (9.2%), ANZ Group (1.6%), Henderson Far East Income (1.2%), and Mainfreight (1.1%). For the week, the index rose 0.2%, marking the second consecutive weekly gain.

New Zealand's stocks fell 26 points, or 0.2%, to 13,799 in Friday morning trade, after gaining in the previous session, as manufacturing sector growth eased in July. The latest data showed New Zealand's factory activity grew for the 21st consecutive month, though at a softer rate, as all of the sub-indices expanded at a slower pace. Traders were also cautious ahead of food inflation data and private-sector figures, as well as China's interest rate decision due next week. However, an upbeat session on Wall Street capped the fall overnight amid easing expectations of a Fed interest rate hike at its upcoming meeting. Materials, healthcare, and financials mainly weighed on the index, with the biggest laggards being Westpac Banking Corp. (-0.8%), Fisher & Paykel (-0.7%), ANZ Group (-0.6%), and Chorus (-0.5%). For the week, the index is heading for a 0.1% fall, after rising in the previous week.

New Zealand's stocks rose 88 points, or 0.6%, to close at 13,825 on Thursday, erasing losses from the previous two sessions, tracking an upbeat session on Wall Street overnight as moderated inflation eased expectations of a Fed interest rate hike at its upcoming meeting. The broader index moved from its lowest level since August 3, reached a day earlier, mainly buoyed by gains from financials, consumer staples, healthcare, and industrials. Moderating oil prices also lifted sentiment as easing concerns over inflation reduced expectations of RBNZ monetary policy tightening. The fresh data also fueled sentiment, as the RBNZ's quarterly survey of expectations showed that business managers expect inflation to slow to 2.34% over the next two years in Q3 2026, marking the lowest reading since Q4 2025. Among the top movers were ANZ Group (5.2%), Mainfreight (3.1%), Westpac Banking Corp. (2.9%), A2 Milk (1.7%), Fisher & Paykel (1.4%), Freightways Group (1.1%), and Contact Energy (1.1%).