NZX 50 Extends Gains, Ends Slightly Higher
The NZX 50 rose 19 points, or 0.1%, to close at 13,710 on Thursday, extending gains from the previous session after both the RBNZ and the Fed held interest rates. However, gains were limited by signals of a possible interest rate hike by the RBNZ at its next meeting, as higher oil prices posed a risk to inflation. The RBNZ Governor Anna Breman said on Thursday that the chances of a rate hike in December were high. Tuesday's decision saw the central bank unexpectedly hold the official cash rate at 2.75% in a split decision, while leaving the door open to further rate hikes to combat rising inflation.Fresh data also boosted sentiment, as business confidence rebounded in October, while moderating oil prices eased concerns over inflation and interest rate hikes. The energy, communication services, and real estate sectors drove the index, with notable gains in Freightways Group (3.3%), Westpac Banking Corp. (2.5%), F&C Investment Trust (1.9%), and Auckland International Airport (1.1%).
The NZX 50 rose 19 points, or 0.1%, to close at 13,710 on Thursday, extending gains from the previous session after both the RBNZ and the Fed held interest rates. However, gains were limited by signals of a possible interest rate hike by the RBNZ at its next meeting, as higher oil prices posed a risk to inflation. The RBNZ Governor Anna Breman said on Thursday that the chances of a rate hike in December were high.
Tuesday's decision saw the central bank unexpectedly hold the official cash rate at 2.75% in a split decision, while leaving the door open to further rate hikes to combat rising inflation.Fresh data also boosted sentiment, as business confidence rebounded in October, while moderating oil prices eased concerns over inflation and interest rate hikes. The energy, communication services, and real estate sectors drove the index, with notable gains in Freightways Group (3.3%), Westpac Banking Corp. (2.5%), F&C Investment Trust (1.9%), and Auckland International Airport (1.1%).