FX.co ★ Bargain Hunting and Nvidia Results Boost New Zealand Stocks

The NZX 50 experienced an increase of 37 points, or 0.3%, reaching 13,364 in early trading on Thursday, effectively halting a two-day decline. This recovery was largely influenced by a robust performance on Wall Street, primarily driven by Nvidia's impressive earnings report that heightened the value of US tech stocks during after-hours trading. Additionally, a wave of bargain hunting contributed to the positive market sentiment after hitting a four-week low on Wednesday. On another note, the Reserve Bank of New Zealand (RBNZ) is anticipated to implement another rate cut next week, marking the fourth reduction this year due to persistently low inflation, which underscores its dovish approach. However, the market's upward movement was tempered by some caution awaiting the release of October trade figures, following the September data which reflected weak import demand in New Zealand. Furthermore, as reported by local media, New Zealand's population is experiencing the slowest growth rate in nearly 13 years, discounting the pandemic period, which adds further strain to its tepid economic recovery. The sectors leading the day's gains were communications, consumer services, and non-energy minerals, with notable advancements by companies such as AFT Pharmaceuticals (up 4.6%), Vista Group International (up 2.0%), PGG Wrightson (up 1.4%), and Spark NZ (up 1.3%).