The NZX 50 slipped 21 points, or 0.2%, to 13,601 in Wednesday morning trade, snapping the previous session’s gains and pulling back from its highest close since February 27, reached just a day earlier. The market was dragged lower primarily by weakness in communication services, consumer staples, and utilities.
Investors were cautious ahead of the release of New Zealand’s May consumer data later this week and China’s PMI figures from a private survey due today. The decline was partly offset by an overnight rally on Wall Street, driven by strength in the technology sector and easing inflation worries. Softer oil prices also helped limit losses by tempering expectations of further interest rate hikes.
Sentiment was further supported by Tuesday’s figures showing New Zealand business confidence climbing to its highest level since February. Among individual movers, Gentrack Group fell 1.0%, while Fletcher Building, Mercury NZ, and Meridian Energy each lost 0.9%. A2 Milk slipped 0.7%, and Fisher & Paykel eased 0.4%.
