The NZX 50 experienced an uptick of 61 points, equating to a 0.5% rise, reaching 12,018 during Friday morning trading. This marks a continuation of gains for the second day in a row, driven by optimism from a Wall Street rally on Thursday. Investors are increasingly expecting that the U.S. Federal Reserve may reduce interest rates sooner than previously anticipated to avert a potential recession. Meanwhile, in a significant development from New Zealand's key trading partner, China, Beijing announced on Thursday its decision to ease market access. This was achieved by decreasing the number of industries on its negative list for foreign investors from 117 to 106.
Most sectors saw positive movements, particularly in producer manufacturing, utilities, and healthcare. Standout performers included Synlait Milk Ltd., which surged by 5.7%, Manawa Energy Ltd. which climbed by 5.1%, and Manfreight Ltd., up by 3.5%. Additionally, Fisher & Paykel Healthcare, a company with significant market capitalization, saw an increase of 0.5%. Despite these gains, the index is projected to conclude the week with a loss of approximately 0.8%, counteracting the progress made in the previous week. Investor sentiment has been dampened by concerns over economic prospects, exacerbated by the International Monetary Fund's decision to lower its growth projections for 2025 for both the U.S. and the global economy. The IMF pinpointed tariffs as a significant hindrance to growth.
