New Zealand shares close at record high after bumper rate cut

JB Hi-Fi

08/10/2025 06:53

RBNZ delivers surprise 50 bps rate cut

Utilities, industrials led gains in NZ benchmark index

ASX200 ends little changed

Updates to market close

By Nikita Maria Jino

Oct 8 (Reuters) - New Zealand shares closed at a record high on Wednesday after the central bank delivered a larger-than-expected rate cut, while Australian equities ended modestly lower as losses in consumer discretionary and technology stocks weighed.

New Zealand's S&P/NZX 50 index .NZ50 ended the session up 0.3% at its highest close of 13,568.48 points.

The benchmark index dipped as much as 0.2% at the open, but swiftly reversed course after the Reserve Bank slashed its key cash rate by an aggressive 50 basis points.

The policymakers signalled concerns about the frail state of the economy and kept the door open for further easing.

The decision went against 15 of 26 economists surveyed in a Reuters poll who had forecast a quarter-point cut, making it the most divided interest rate decision since COVID-19, according to Jeremy Sullivan, investment adviser at Hamilton Hindin Greene in Christchurch, New Zealand.

"We have a yield-sensitive market with many high dividend-paying companies. A relative interest rate move lower compared to the dividends that our companies are capable of paying is putting upward pressure on the index," Sullivan said.

Utilities and industrials led gains in the benchmark index. Shares of Meridian Energy MEL.NZ rose nearly 3%, while bourse operator NZX NZX.NZ added 2.5%. Australian lender Westpac Banking Group's NZX-listed shares WBC.NZ posted an all-time closing high.

In Australia, the S&P/ASX 200 index .AXJO lost 9.2 points to close at 8,947.60.

Consumer discretionary stocks .AXDJ, which are sensitive to economic cycles, dropped 1.5% in their third consecutive session of losses. Conglomerate Wesfarmers WES.AX declined to a one-month low, while electronics retailer JB Hi-Fi JBH.AX fell to its lowest point in three weeks.

Local technology stocks .AXIJ extended the Australian benchmark index's decline, falling to a one-month low in line with overnight losses on Wall Street. .N

Sector leaders WiseTech Global WTC.AX and Xero XRO.AX lost 0.4% and 1.7%, respectively.

Heavily weighted miners .AXMM bucked the sombre trend to edge 0.2% higher. Index constituents Rio Tinto RIO.AX and South32 S32.AX advanced 0.9% and 2.7%, respectively.

NZ50 moves after RBNA decision https://tmsnrt.rs/48lpT7o

 (Reporting by Nikita Maria Jino in Bengaluru; Editing by Sherry Jacob-Phillips)

 ((Nikita.Jino@thomsonreuters.com;))