NZX 50 Ends at Over 2-Month Low

The NZX 50 dropped 76 points, or 0.6%, to 13,484 on Tuesday, retreating for the fourth consecutive session and touching its lowest level since June 24. The index tracked a downbeat session on Wall Street on Monday, due to a sell-off in chipmakers after AI companies called for an industry-wide slowdown. Traders were cautious ahead of the release of New Zealand’s Q2 GDP later this week, with the market expecting quarterly growth to ease. Disappointing data from China, New Zealand’s top trading partner, also pressured sentiment, as retail sales growth came in below expectations, while investment and house prices continued to decline. Expectations of a Fed interest rate hike later this week, amid higher oil prices, also further pressured sentiment. Energy, materials, and financials mainly weighed on the index, with notable losses from Summerset Group (-3.6%), Infratil (-3.5%), Channel Infrastructure (-2.6%), Chorus (-1.7%), and Freightways Group (-1.2%).

The NZX 50 fell 24 points, or 0.2%, to 13,537 in Tuesday morning trade, down for the fourth straight session and lingering at its lowest level since June 26, tracking a decline on Wall Street overnight due to a sell-off in chipmakers after AI companies called for an industry-wide slowdown. Traders were cautious ahead of the release of New Zealand’s Q2 GDP later this week, with the market expecting quarterly growth to ease. Caution also prevailed ahead of a slew of economic data from China, New Zealand’s top trading partner, as well as the Fed’s monetary policy meeting later this week. On the data front, New Zealand electronic card spending fell in August after rising in the previous month. Energy, healthcare, and financials mainly weighed on the index, with notable losses from Channel Infrastructure (-2.3%), Infratil (-1.1%), Fisher & Paykel (-0.8%), Bankers Investment (-0.9%), and Hallenstein Glasson (-0.7%).

The NZX 50 dropped 20 points, or 0.1%, to close at 13,561 on Monday, erasing gains in morning trade, extending losses from the previous session, and touching its lowest level since June 26, tracking a decline in US stock futures amid AI safety concerns and surging oil prices. Traders were cautious ahead of the release of New Zealand’s Q2 GDP later this week, with the market expecting quarterly growth to ease. Caution also prevailed ahead of a slew of economic data from China, New Zealand’s top trading partner, as well as the Fed monetary policy meeting later this week. However, fresh data capped the fall, as New Zealand private-sector growth remained robust in August, with services activity rising the most in eight months, though manufacturing growth eased. Financials, communication services, and industrials mainly weighed on the index, with notable losses from Infratil (-2.8%), Briscoe Group (-2.3%), Mercury NZ (-2.1%), Freightways Group (-1.5%), and Mainfreight (-0.5%).