NZX 50 Edges Higher After GDP Data

The NZX 50 climbed 134 points, or 1.0%, to close at 13,757 on Thursday, extending gains from the previous session after fresh data showed New Zealand’s GDP grew faster than expected in Q2. The country’s economy expanded 2.6% year-on-year, beating estimates of 2.3% and marking the strongest growth in three years, while easing to 0.2% quarter-on-quarter, above forecasts of 0.1%, amid elevated oil prices due to the ongoing Middle East conflict. The broader index tracked a rise in US stock futures after the Fed’s rate hike triggered a market sell-off. However, the Fed’s decision to hike interest rates for the first time since 2023 capped the gains. Traders continued to monitor developments in the Iran-US war and its impact on oil prices. Energy, tech, utilities, real estate, and financials mainly drove the index, with notable gains including Gentrack Group (3.6%), Channel Infrastructure (2.7%), Mercury NZ (2.5%), Westpac Banking Corp. (2.3%), ANZ Group (1.5%), and Infratil (1.4%).

The NZX 50 rose 8 points, or 0.1%, to 13,631 in Thursday morning trade, extending gains from the previous session following the release of New Zealand’s GDP data. Fresh data showed that New Zealand’s economy grew more than expected, with GDP rising 2.6% year-on-year, while easing to 0.2% quarter-on-quarter, amid elevated oil prices due to the ongoing Middle East conflict. However, the Fed’s decision to hike interest rates by 25 bps limited the gains. Traders continued to monitor developments in the Iran-US war and its impact on oil prices. Financials, healthcare, and utilities mainly drove the index, with top movers including Channel Infrastructure (1.5%), Freightways Group (0.7%), AFT Pharmaceuticals (0.5%), EBOS Group (0.5%), and Gentrack Group (0.5%).

The NZX 50 advanced 139 points, or 1.0%, to close at 13,623 on Wednesday, halting losses from the previous four sessions and moving away from its lowest level since June 24, touched a day earlier, ahead of the release of Q2 GDP data. New Zealand's economic data will be released on Thursday, with the market expecting GDP to accelerate 2.3% yoy, while easing to 0.1% qoq. Fresh data also fueled sentiment, as New Zealand consumer confidence moved away from a three-year low, though it remained in pessimistic territory. However, expectations of a Fed interest rate hike, amid higher oil prices, pressured sentiment. The index was also capped by a downbeat session on Wall Street overnight due to a surge in US Treasury yields. Financials, healthcare, and utilities mainly drove the index, with top movers including Ventia Services (4.3%), Infratil (3.6%), Brisco (3.5%), Contact Energy (2.5%), Delegat Group (2.2%), Fisher & Paykel (1.9%), Meridian Energy (1.7%), and Mainfreight (1.2%).