NZX 50 Trades in the Green to Start the Week

The NZX 50 gained 95 points, or 0.7%, to 13,676 in Monday morning deals, erasing losses from the previous session and moving away from its lowest level since June 29, touched on Friday, mainly buoyed by gains in materials, healthcare, and financials. Fresh data lifted sentiment, as New Zealand private-sector growth remained robust, with services activity rising the most in eight months, though factory activity growth eased. Meanwhile, tourist arrivals hit a four-month high. However, traders were cautious 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 this week. A fall in US stock futures capped the gains amid rising oil prices and AI safety concerns. Among early gainers were EBOS Group (2.3%), Fisher & Paykel (1.6%), Freightways Group (0.8%), Infratil (1.2%), and F&C Investment (0.6%).

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.