FX.co ★ NZX 50 Rebounds, but Posts Weekly Loss

The NZX 50 rose 80 points, or 0.6%, to 13,695 on Friday, reversing early losses and breaking a four-session losing streak. The index also rebounded from its lowest close since July 2, hit the previous day, supported mainly by strength in the energy, materials, and consumer discretionary sectors.

Sentiment improved following fresh data showing food price inflation slowed to 2.5% in June from 3.2% in May, the weakest annual increase in 16 months. However, gains were capped by persistently high oil prices, which kept inflation concerns elevated and reinforced expectations of further interest rate hikes.

Traders remained cautious ahead of next Tuesday’s release of Q2 inflation figures, with higher fuel costs adding to uncertainty. RBNZ Chief Economist Paul Conway has recently warned that stubborn inflation could still require additional policy tightening.

Among the top performers were Freightways Group (+1.5%), Meridian Energy (+1.4%), South Port NZ (+1.4%), and Chorus (+1.2%). For the week, the NZX 50 slipped 0.6%, following a gain in the previous week.