NZX 50 Ends 0.6% Lower, Little Changed for the Week

The NZX 50 dropped 79 points, or 0.6%, to close at 13,754 on Friday, halting gains from the morning session and the previous two sessions, mainly weighed down by losses in utilities, communication services, and real estate. The latest data weighed on sentiment, as food inflation hit a three-month high, while electronic card spending continued to fall in September. Traders also looked ahead to the release of Q3 inflation and September trade data, along with a slew of Chinese data, including GDP growth, due next week. However, accelerating growth in New Zealand's factory activity in August limited the decline. Meanwhile, an upbeat session on Wall Street overnight helped prevent a deeper fall as the tech selloff faded and Treasury yields eased. Among the notable decliners were Vulcan Steel (2.4%), Mainfreight (1.5%), Hallenstein Glasson (1.3%), AFT Pharmaceuticals (1.1%), and Infratil (1.0%). For the week, the index was almost flat after rising in the previous week.

The NZX 50 climbed 24 points, or 0.2%, to 13,857 in Friday morning trade, extending gains from the previous two sessions to reach its highest level since September 22. The index tracked a rise on Wall Street overnight as the tech selloff faded and Treasury yields eased. Fresh data also lifted sentiment, as New Zealand's factory activity growth accelerated in August. However, food inflation hit a three-month high, while electronic card spending continued to fall in September, capping the gains. Traders also looked ahead to the release of Q3 inflation and trade data, along with a slew of Chinese data, including GDP growth, due next week. Healthcare, consumer discretionary, and consumer staples stocks mainly supported the index, with notable gains from Fisher & Paykel (1.1%), South Port of New Zealand (1.1%), Infratil (1.0%), and EBOS Group (0.5%). For the week, the index is heading for a 0.8% rise, which would mark its second straight weekly increase.

The NZX 50 rose 72 points, or 0.5%, to close at 13,833 on Thursday, erasing its morning losses and extending gains from the previous session to reach its highest level since September 30. The index was mainly buoyed by gains in utilities, consumer staples, and real estate. A downbeat session on Wall Street overnight curbed gains, as faster-than-expected inflation data raised expectations of Fed rate hikes. Rising oil prices further pressured sentiment amid inflation concerns and the RBNZ's tightening monetary policy. Caution also prevailed ahead of the release of New Zealand's food inflation and business PMI data on Friday, while traders assessed a statement from RBNZ Chief Economist Paul Conway that rising oil prices and a weaker New Zealand dollar had added to near-term inflationary pressures, complicating the outlook for this month's interest rate decision. Among the notable gainers were Mainfreight (2.9%), EBOS Group (2.9%), Westpac Banking Corp. (1.9%), and ANZ Group (1.4%).