New Zealand shares were little changed around 13,937 in Thursday morning trading, after gains in the previous session. Strength in consumer staples, real estate, and financials was largely offset by weakness in energy, consumer discretionary, and healthcare stocks.
Investors continued to digest Wednesday’s Reserve Bank of New Zealand decision to raise the official cash rate by 25 basis points, reaffirming its commitment to bringing inflation back within the 1%–3% target band. However, further upside in the market was capped by rising oil prices, which stoked inflation concerns and reinforced expectations of additional rate hikes amid escalating tensions in the Middle East.
Sentiment was supported by a positive lead from Wall Street, where heavyweight technology names posted solid gains. On the economic front, New Zealand’s terms of trade declined again, as export growth lagged behind the rise in imports.
Among individual names, Delegat Group advanced 1.3%, Chorus added 0.9%, and A2 Milk gained 0.6%. In contrast, Fletcher Building and Fisher & Paykel eased 1.0% and 0.3%, respectively.