12.11.202622:51:27UTC+00NZX 50 Retreats from Record High but Poised for 3rd Weekly Gain

The NZX 50 fell 80 points, or 0.6%, to 14,179 in Friday morning trade, following a weak lead from Wall Street overnight. Sentiment was hit by a sharp sell-off in Nvidia shares after the resignation of CEO Jensen Huang, while rising oil prices pushed US Treasury yields higher.

Profit-taking also weighed on the local market after the benchmark index notched a record high in the previous session, buoyed by strong earnings from several heavyweight stocks. Fresh domestic data further dampened risk appetite, showing that growth in New Zealand’s manufacturing sector slowed in October amid higher fuel costs, elevated living expenses, and uncertainty surrounding the upcoming election.

Climbing oil prices added to the pressure on equities by intensifying inflation worries and reinforcing expectations of further interest rate increases. Almost all sectors traded lower, led by industrials, with notable declines in Auckland International Airport (-3.4%), Turners Automotive (-1.9%), Fletcher Building (-1.6%), and Brisco Group (-1.2%).

Despite the session’s pullback, the NZX 50 was still up 1.3% for the week, recording its third consecutive weekly gain.