The NZX 50 advanced 72 points, or 0.5%, to close at 13,833 on Thursday, recovering its early losses and building on the previous session’s gains to reach its highest level since September 30. The benchmark was supported primarily by strength in utilities, consumer staples, and real estate stocks.
Upside momentum was capped by a weak lead from Wall Street, where faster-than-expected inflation data boosted expectations of further Federal Reserve rate hikes. Rising oil prices also weighed on sentiment by stoking inflation concerns, against the backdrop of the RBNZ’s ongoing monetary tightening.
Investors remained cautious ahead of Friday’s releases of New Zealand food inflation and business PMI figures, while also digesting comments from RBNZ Chief Economist Paul Conway. He noted that higher oil prices and a weaker New Zealand dollar have intensified near-term inflationary pressures, complicating the outlook for this month’s interest rate decision.
Notable gainers included Mainfreight and EBOS Group, each up 2.9%, as well as Westpac Banking Corp., which rose 1.9%, and ANZ Group, which gained 1.4%.