NZX 50 Halts Decline, Ends 0.1% Higher

The NZX 50 rose 20 points, or 0.1%, to close at 13,831 on Monday, halting some of the losses from the morning and the previous session, mainly buoyed by gains in consumer staples, utilities, and real estate. However, the gain was limited by declines in materials, tech, and industrial sectors. High US Treasury yields and higher oil prices limited the gain after US President Trump rejected a peace deal with Iran to reopen the Strait of Hormuz. High oil prices persisted, raising inflation concerns. Recently, RBNZ Governor Anna Breman warned that inflation could be higher if high oil prices persist. Traders also anticipated the release of New Zealand business confidence for September, China’s PMI data, as well as the US PCE Index and jobs data due this week, which could provide clues about the Fed’s monetary policy decision at its upcoming meeting. Among the top movers were Delegat Group (3.5%), A2 Milk (2.7%), Meridian Energy (2.2%), ANZ Group (1.8%), and Mercury NZ (1.2%).

The NZX 50 dropped 17 points, or 0.1%, to 13,795 in Monday morning trade, extending losses from the previous session and tracking a slight fall in US stock futures. Higher oil prices continued to pressure sentiment after US President Trump rejected a peace deal with Iran to resolve the conflict and reopen the Strait of Hormuz. High oil prices persisted, raising concerns over inflation. Recently, RBNZ Governor Anna Breman warned that inflation could be higher if high oil prices persist. Traders also anticipated the release of New Zealand business confidence for September, China’s PMI data, as well as the US PCE Index and jobs data due this week, which could provide clues about the Fed’s monetary policy decision at its upcoming meeting. Tech, financial, industrial, and real estate sectors mainly weighed on the index, with early decliners including Gentrack Group (-3.4%), Brisco Group (-2.9%), Sanford (-1.5%), Summerset Group (-1.4%), Infratil (-1.1%), and Fletcher Building (-1.0%).

The NZX 50 fell 14 points, or 0.1%, to 13,811 on Friday, after being flat in the previous session, as a global bond sell-off amid a surge in US Treasury yields raised expectations of a Fed interest rate hike. Caution was also evident as high oil prices persisted amid ongoing Gulf shipping disruptions. Recently, RBNZ Governor Anna Breman warned that inflation could be higher if high oil prices persist. Traders also anticipated the release of China’s PMI data, New Zealand’s top trading partner, as well as the US PCE Index and jobs data due next week, which could provide clues about the Fed’s monetary policy decision at its upcoming meeting. Financials, real estate, utilities, and communication services mainly weighed on the index, with notable losses from Delegat Group (-4.1%), Infratil (-2.1%), Brisco Group (-1.8%), Ventia Services (-1.5%), Fletcher Building (-0.8%), and F&C Investment (-0.7%). For the week, the index rose 0.5%, marking its second straight weekly gain.