NZX 50 Erases Morning Gains, Closes 0.1% Lower

The NZX 50 dropped 20 points, or 0.1%, to close at 13,561 on Monday, erasing gains in morning trade, extending losses from the previous session, and touching its lowest level since June 26, tracking a decline in US stock futures amid AI safety concerns and surging oil prices. Traders were cautious ahead of the release of New Zealand’s Q2 GDP later this week, with the market expecting quarterly growth to ease. Caution also prevailed ahead of the release of a slew of economic data from China, New Zealand’s top trading partner, as well as the Fed monetary policy decision later this week. However, fresh data capped the fall, as New Zealand private-sector growth remained robust in August. Financials, communication services, and industrials mainly weighed on the index, with notable losses from Infratil (-2.8%), Briscoe Group (-2.3%), Mercury NZ (-2.1%), Freightways Group (-1.5%), and Mainfreight (-0.5%).