New Zealand Stocks End Week 2.8% Lower

The NZX 50 lost 131 points, or 1.0%, to close at 13,580 on Friday, reversing morning gains, extending losses from the previous session, and touching its lowest level since June 29, tracking a downbeat session on Wall Street overnight amid a surge in Treasury yields and rising oil prices. Traders were cautious ahead of the release of US inflation data later today for clues on the Fed’s monetary policy decision next week. Caution also built ahead of the release of New Zealand’s Q2 GDP and a slew of economic data from China, New Zealand’s top trading partner, due next week. On the data front, New Zealand’s manufacturing sector expanded at a slower pace in August. Almost all sectors traded in the red, led by materials, with the biggest laggards including Fisher & Paykel (-1.8%), Freightways Group (-1.6%), Auckland International Airport (-1.3%), A2 Milk (-1.2%), Infratil (-1.2%), and Meridian Energy (1.1%). For the week, the index fell 2.8%, after rising in the previous week.

New Zealand stocks rose 24 points, or 0.2%, to 13,735 in Friday morning trade, moving up from their lowest level since July 31, touched a day earlier, mainly buoyed by consumer discretionary, healthcare, and real estate. However, traders were cautious ahead of the release of US inflation data later today for clues on the Fed's monetary policy decision next week. Caution also built ahead of the release of New Zealand's GDP for Q2 and a slew of data from China, New Zealand's top trading partner, due next week. A downbeat session on Wall Street overnight also capped the gain, amid a surge in Treasury yields and rising oil prices. On the data front, New Zealand’s manufacturing sector expanded at a slower pace in August. Among earlier gainers were Hallenstein Glasson (1.6%), Ebos Group (1.1%), Chorus (0.7%), F&C Investment (0.6%), and ANZ Group (0.2%). For the week, the index is heading for a 1.5% fall, after rising in the previous week.

New Zealand stocks dropped 108 points, or 0.8%, to close at 13,711 on Thursday, touching its lowest level since July 31, after rising in the previous session, tracking a downbeat session on Wall Street overnight following a surge in Treasury yields and rising oil prices. Oil continued to rise, raising concerns over inflation and boosting bets that central banks would raise interest rates, including the RBNZ, which recently hiked its interest rate for the second straight meeting. Traders also anticipated the release of US inflation data later this week for clues on the Fed's monetary policy decision at its upcoming meeting, as well as New Zealand's manufacturing PMI for August due on Friday. Industrials, utilities, and real estate mainly weighed on the index, with the biggest laggards including Delegat Group (-3.9%), Briscoe Group (-3.2%), Fletcher Building (-2.6%), ANZ Group (-1.5%), Mainfreight (-1.4%), Westpac Banking Corp. (-1.3%), and Freightways Group (-1.2%).