New Zealand Equities End 0.4% Lower

The NZX 50 dropped 54 points, or 0.4%, to close at 13,822 on Wednesday, moving from its highest level since September 7, reached a day earlier, and erasing gains from the previous two sessions, weighed down by declines in tech, utilities, and industrials. Traders continued to assess a warning from RBNZ Governor Anna Breman that inflation could be higher if high oil prices persist. Caution was heightened as higher oil prices raised expectations of an interest rate hike at the upcoming meeting. Traders were also cautious ahead of the Trump-Xi summit, with AI and tariffs expected to be discussed at the meeting. However, further easing in oil prices capped the fall due to eased tensions in the Middle East amid hopes of renewed US- Iran talks. Among the biggest laggards were Gentrack Group (-5.0%), Freightways Group (-3.4%), Mercury NZ (-1.6%), Meridian Energy (-1.6%), Mainfreight (-1.5%), Contact Energy (-1.2%), and EBOS Group (-0.9%).