17.09.202523:05:53UTC+00NZX 50 Hits 2-Week Low after GDP Data

New Zealand equities experienced a decline of 45 points, or 0.3%, slipping to 13,184 during Thursday's morning trade, further extending losses from the previous session and reaching their lowest point in two weeks. The NZX 50 index was impacted by new data revealing a 0.9% quarter-on-quarter GDP contraction in Q2 for New Zealand, a decline sharper than the market's anticipated 0.3% decrease, alongside an unexpected year-on-year contraction of 0.6%. This data followed a Wednesday report indicating persistently low consumer confidence, attributed to escalating living costs and continued economic uncertainty. While the Federal Reserve's rate cut aligned with market expectations, it failed to boost investor sentiment as they continued to assess the Fed's revised economic forecasts. Nearly all sectors saw declines, with utilities, communication services, and consumer discretionary sectors leading the downturn. Early notable declines included Hallenstein Glasson (-1.5%), Chorus (-1.4%), Meridian Energy (-1.2%), Mercury NZ (-0.7%), and Fletcher Building (-0.6%).