The NZX 50 extended gains to a record close as energy, consumer discretionary and materials shares advanced, while hotter second-quarter inflation, high oil prices and weaker U.S. futures kept rate-hike concerns in focus.
New Zealand’s NZX 50 rose for a second straight session to a record 13,795 on Thursday, up 32 points or 0.2%, after climbing 107 points or 0.8% to 13,763 on Wednesday, its highest close since July 9 at the time. Thursday’s advance was led by energy, materials and consumer discretionary stocks, with the energy sector up 4.6% and Channel Infrastructure NZ gaining 4.6% on optimism around its fuel storage project. On Wednesday, consumer discretionary stocks led gains, with SkyCity Entertainment jumping 12.8% after upgraded earnings forecasts and positive revenue reports. Persistently high oil prices and second-quarter inflation data showing New Zealand’s inflation accelerated to its highest level since Q4 2023 reinforced expectations for further interest rate hikes, echoing recent comments from RBNZ Chief Economist Paul Conway that sticky inflation could prompt more monetary policy tightening. Gains were also tempered by weaker U.S. futures after a soft Wall Street session and caution ahead of earnings from mega-cap technology companies.