New Zealand Stocks Trade Slightly Higher

The NZX 50 was little changed at 13,825 at the close on Thursday, after gaining in the morning session and following losses in the previous session, as gains in energy, industrials, and financials were offset by declines in tech stocks, communication services, and real estate. Traders were cautious amid higher oil prices as uncertainty persisted over US-Iran talks. Recently, RBNZ Governor Anna Breman warned that inflation could be higher if high oil prices persist. Caution also prevailed as traders awaited the outcome of the Trump-Xi summit, with AI and tariffs expected to be discussed at the meeting. In the US, Wall Street closed in the red overnight as a surge in Treasury yields drove a market sell-off and raised expectations for a Fed interest rate hike. Briscoe Group plunged 4.2%, Gentrack Group slumped 3.7%, ANZ Group fell 2.5%, and Mainfreight shed 0.7%, while Colonial Motor, Delegat Group, and Freightways Group rose 3.7%, 1.4%, and 0.7%, respectively.

The NZX 50 gained 14 points, or 0.1%, to 13,836 in Thursday morning trade, erasing losses from the previous session, mainly buoyed by financials, consumer staples, and utilities. Optimism over the Trump-Xi summit lifted sentiment as AI and tariffs were expected to be discussed at the meeting. However, higher oil prices capped the gain due to escalating tensions in the Middle East after Iran's president vowed never to surrender. In the US, Wall Street closed in the red as a surge in Treasury yields drove a market sell-off and raised expectations for a Fed interest rate hike. Among early gainers were Briscoe Group (0.9%), Contact Energy (0.9%), Hallenstein Glasson (0.8%), Infratil (0.7%), and EBOS Group (0.6%). Meanwhile, Fonterra Shareholders' Fund rose 1.4% after posting a full-year profit following the sale of its Mainland brands to French dairy giant Lactalis.

The NZX 50 dropped 54 points, or 0.4%, to close at 13,822 on Wednesday, moving from its highest level since September 7, reached a day earlier, and erasing gains from the previous two sessions, weighed down by declines in tech, utilities, and industrials. Traders continued to assess a warning from RBNZ Governor Anna Breman that inflation could be higher if high oil prices persist. Caution was heightened as higher oil prices raised expectations of an interest rate hike at the upcoming meeting. Traders were also cautious ahead of the Trump-Xi summit, with AI and tariffs expected to be discussed at the meeting. However, further easing in oil prices capped the fall due to eased tensions in the Middle East amid hopes of renewed US- Iran talks. Among the biggest laggards were Gentrack Group (-5.0%), Freightways Group (-3.4%), Mercury NZ (-1.6%), Meridian Energy (-1.6%), Mainfreight (-1.5%), Contact Energy (-1.2%), and EBOS Group (-0.9%).