NZX 50 Edges Higher in Morning Trade

New Zealand stocks advanced 17 points, or 0.1%, to 13,810 in Wednesday morning trade, erasing losses from the previous two sessions, supported by gains in communication services, utilities, technology, and real estate. A report from Moody’s ratings agency continued to lift sentiment, saying New Zealand’s economic recovery is underway, though warning that several issues remain unresolved. However, a downbeat session on Wall Street overnight capped the gains, as rising oil prices amid the escalating conflict in the Middle East raised concerns over inflation and boosted bets that central banks would raise interest rates. Caution also prevailed ahead of China’s consumer and producer price data later today, amid persistently weak domestic demand. Among the early gainers were Gentract Group (2.1%), Sanford (1.8%), Mercury NZ (1.4%), Contact Energy (0.7%), and F&C Investment Trust (0.5%).

New Zealand stocks dropped 150 points, or 1.1%, to close at 13,793 on Tuesday, down for the second straight session, mainly weighed down by materials, technology, energy, and utilities. Rising oil prices also pressured sentiment amid the escalating conflict in the Middle East, raising concerns over inflation and boosting bets that central banks would raise interest rates. Caution also prevailed ahead of China’s consumer and producer price data due on Wednesday, amid persistently weak domestic demand. However, a report from Moody’s ratings agency capped the fall, saying New Zealand’s economic recovery is underway but warning that several issues remain unresolved. Fresh data from China, New Zealand’s top trading partner, showed that China’s export growth remained robust in August. Among the biggest laggards were Gentrack Group (-5.1%), Mercury NZ (-2.5%), ANZ Group (-2.4%), Mainfreight (-2.3%), Fletcher Building (-2.3%), Channel Infrastructure (-1.4%), and Infratil (-1.1%).

New Zealand stocks fell 27 points, or 0.2%, to 13,916 in Tuesday morning deals, extending losses from the previous session, mainly weighed down by financials, materials, tech, and utilities. Traders were cautious ahead of China's trade data due later today, with China being New Zealand's top trade partner, as well as CPI and PPI data due later this week. Rising oil prices also pressured sentiment amid the escalating conflict in the Middle East, raising concerns over inflation and boosting bets that central banks would raise interest rates. However, a report from Moody's ratings agency capped the fall, saying New Zealand's economic recovery is underway but warning that several issues remain unresolved. Among the early losers were Summerset Group (-1.2%), Fletcher Building (-0.8%), ANZ Group (-0.7%), Vulcan Steel (-0.7%), Infratil (-0.5%), and Auckland International Airport (-0.5%).