The NZX 50 edged up 19 points, or 0.1%, to close at 13,710 on Thursday, extending the previous session’s advance after both the RBNZ and the Federal Reserve kept interest rates unchanged. Gains were capped, however, by growing expectations that the RBNZ could raise rates at its next meeting amid inflation risks from higher oil prices. RBNZ Governor Anna Breman said on Thursday that the likelihood of a December rate hike was high.
On Tuesday, the central bank unexpectedly left the official cash rate on hold at 2.75% in a split decision, while signaling that further tightening remained on the table to counter mounting inflationary pressures. Sentiment was also supported by fresh data showing a rebound in business confidence in October and easing concerns over inflation and future rate increases as oil prices moderated.
Sector-wise, energy, communication services, and real estate led the gains. Notable movers included Freightways Group, up 3.3%; Westpac Banking Corp., up 2.5%; F&C Investment Trust, up 1.9%; and Auckland International Airport, up 1.1%.
