New Zealand Stocks Edge Higher to Start the Week
The NZX 50 rose 23 points (0.2%) to 12,912, marking its fourth consecutive gain, driven by consumer staples, materials, financials, and utilities. Positive earnings reports bolstered market sentiment, while anticipation of a 25 bps interest rate cut by the RBNZ added optimism. Investors remained cautious ahead of Fed Chair Jerome Powell's speech and awaited China's interest rate decision. New Zealand's services sector showed slower contraction in July. Notable gainers included F&C Investment (1.4%), Infratil (1.2%), and A2 Milk, which surged 4.9% after a 21.1% profit increase.
The NZX 50 climbed 23 points, or 0.2%, to 12,912 in morning trade on Monday, gaining for the fourth straight session, mainly supported by consumer staples, materials, financials, and utilities.
Solid earnings results from several companies lifted sentiment.
The upcoming RBNZ monetary policy meeting later this week also boosted optimism, amid expectations of a 25 bps interest rate cut to 3%.
However, investors remained cautious ahead of Fed Chair Jerome Powell’s speech on Friday at the annual Jackson Hole Economic Symposium, seeking clues on the future path of US interest rates.
Traders also awaited an interest rate decision from China, New Zealand’s top trading partner.
On the data front, New Zealand’s services sector contracted in July, but at a slower pace than in June.
Among early gainers were F&C Investment (1.4%), Infratil (1.2%), and Sanford Limited (1.1%).
Meanwhile, A2 Milk surged 4.9% after reporting a 21.1% rise in its full-year profit.
