New Zealand Stocks End Week 1.2% Higher

The NZX 50 lost 17 points, or 0.1%, to close at 13,739 on Friday, reversing its morning gains and halting a two-session winning streak, as traders continued to assess the GDP data. Thursday’s data showed New Zealand’s GDP eased to 0.1% quarterly from 0.2%. Traders anticipated China’s interest rate decision and US PMI data next week for clues about the economic outlook in the two countries. However, the latest data capped declines, as New Zealand’s trade deficit narrowed in August from July, while food inflation remained at a 19-month low. A rally on Wall Street Thursday also helped prevent the index from falling deeper, as easing oil prices softened Treasury yields. Consumer staples, financials, and communication services mainly weighed on the index, with the biggest laggards including A2 Milk (-3.9%), Skellerup Holdings (-2.9%), Gentrack Group (-2.6%), Infratil (-1.0%), and Westpac Banking Corp (-0.9%). For the week, the index rose 1.2%, after falling in the previous week.

The NZX 50 advanced 29 points, or 0.2%, to 13,785 in Friday morning trade, up for the third straight session, tracking gains on Wall Street overnight as easing oil prices softened Treasury yields, while the Fed’s rate hike reaffirmed the central bank’s commitment to contain inflation. Thursday’s data continued to lift sentiment after New Zealand’s GDP grew faster than expected in Q2. However, traders awaited China’s interest rate decision and US PMI data next week for clues about the economic outlook in the two countries. On the data front, New Zealand’s trade deficit narrowed in August from July, as exports rose more than imports, while food inflation stayed at a 19-month low. Real estate, consumer discretionary, and financials mainly drove the index, with notable gains including Port of Tauranga (1.0%), Chorus (0.8%), Hallenstein Glasson (0.8%), and Auckland International Airport (0.5%). For the week, the index is heading for a 1.5% gain, after falling in the previous week.

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%).