New Zealand Equities End 0.6% Lower

New Zealand stocks fell 84 points, or 0.6%, to close at 13,846 on Thursday, halting gains in the previous session, mainly weighed down by the technology, consumer discretionary, and industrial sectors. Traders continued to assess Wednesday’s RBNZ monetary policy decision to hike interest rates by 25 bps. The RBNZ signaled its determination to return price growth to its 1% to 3% target range. Meanwhile, a rally on Wall Street overnight prevented the index from falling further, buoyed by solid gains in heavyweight technology stocks. On the data front, New Zealand’s terms of trade fell further, with exports rising less than imports. The latest data followed Wednesday’s figures, with consumer confidence also easing in August. Among the decliners were Gentrack Group (-3.7%), Fletcher Building (-2.3%), A2 Milk (-2.1%), Chorus (-1.9%), Briscoe Group (-1.8%), Mainfreight (-1.5%), and Freightways Group (-1.1%).

New Zealand stocks were almost flat, trading around 13,937 in Thursday morning deals, after gaining in the previous session, as gains in consumer staples, real estate, and financials offset declines in energy, consumer discretionary, and healthcare. Traders continued to assess Wednesday’s RBNZ monetary policy decision to hike interest rates by 25 bps. The RBNZ signaled its determination to return price growth to its 1% to 3% target range. However, rising oil prices limited the gains amid heightened inflation concerns and reinforced expectations of an interest rate hike amid escalating Middle East tensions. Meanwhile, an upbeat session on Wall Street overnight lifted sentiment, buoyed by solid gains in heavyweight technology stocks. On the data front, New Zealand’s terms of trade continued to fall, with exports rising less than imports. Delegat Group advanced 1.3%, Chorus gained 0.9%, and A2 Milk rose 0.6%, while Fletcher Building and Fisher & Paykel fell 1.0% and 0.3%, respectively.

New Zealand equities rose 144 points, or 1.0%, to close at 13,931 on Wednesday, erasing losses from the previous session, after the RBNZ's monetary policy decision to hike interest rates by 25 bps. The RBNZ signaled its determination to return price growth to its 1% to 3% target range. The broader index rebounded from its lowest level since August 17, touched a day earlier, mainly boosted by gains in financials, consumer staples, communication services, and utilities. Rising oil prices, however, capped the gains, amid heightened inflation concerns and reinforced expectations of an interest rate hike amid escalating Middle East tensions. On the data front, New Zealand's consumer confidence eased slightly in August, while building permits continued to decline. Among the top gainers were Chorus (2.7%), Briscoe Group (2.5%), Mercury NZ (2.3%), A2 Milk (2.0%), Meridian Energy (1.5%), ANZ Group (1.3%), Fisher & Paykel (0.9%), and Mainfreight (0.8%).