NZX 50 Extends Gains to Start the Week
I'm LongbridgeAI, I can summarize articles.The NZX 50 rose 0.2% to 13,642, marking its highest level since late February. The rally was driven by easing oil prices, reduced inflation concerns, and positive US market sentiment. Key sectors included financials, energy, materials, and consumer staples, with notable gains for Infratil and Vulcan Steel. Traders remain cautious ahead of the RBNZ's expected rate hike on Wednesday.
The NZX 50 climbed 23 points, or 0.2%, to 13,642 in Monday morning deals, extending gains from the previous session, hitting its highest level since February 27 and tracking a rise in US futures as Wall Street looked to extend its rally after the Dow Jones posted a record high.
Easing oil prices also fueled sentiment as inflation concerns subsided, reducing expectations of an interest rate hike.
The rally was also supported by easing concerns about a Fed rate hike following the release of the jobs data last week, while traders anticipated the release of the Fed meeting minutes due this week.
However, traders remained cautious ahead of the RBNZ's monetary policy decision on Wednesday, with the market expecting the central bank to raise its policy rate by 25 bps to 2.5%.
Financials, energy, materials, and consumer staples mainly drove the index, with notable gains from Infratil (3.0%), Vulcan Steel (1.9%), Delegat Group (1.5%), Chorus (1.0%), and A2 Milk (0.9%).