New Zealand’s share market opened the second quarter with minimal movement, closing slightly lower after a subdued trading session. The S&P/NZX 50 Index fluctuated between 13,585.01 and 13,669.33 points before settling at 13,610.5, down 11.16 points or 0.08% from the previous day’s close. Market activity saw 59 stocks gaining and 69 declining on the main board, with a total volume of 43.37 million shares worth NZD 177.25 million changing hands.

Auckland International Airport led trading volumes, rising 3.35% to NZD 8.63 on turnover of NZD 24.34 million. Other notable movers included Bremworth, which gained 19.15% to 84 cents following clearance from the Commerce Commission for takeover talks with Floorscape. Meanwhile, Infratil rose 7 cents to NZD 15.50 after announcing the departure of One New Zealand chief executive Jason Paris, with chief financial officer Nick Judd named as his successor.

Market analysts expressed cautious optimism despite the flat opening. Matt Goodson, managing director of Salt Funds Management, highlighted a 5.5% gain in the local market during the June quarter, outpacing Australia’s 4% increase. However, Goodson noted significant divergence among top 50 stocks, with companies such as Gentrack and a2 Milk declining sharply by 41% and 20%, respectively, while Vista Group and Infratil posted gains of 39% and 33%.

Looking ahead, Goodson cited easing supply-side pressures following recent geopolitical tensions, notably the Iran conflict, and falling petrol prices as reasons for optimism. He also pointed to robust performance in the rural sector, including a revival in wool markets after years of stagnation. Nevertheless, uncertainty remains about the Reserve Bank of New Zealand’s forthcoming decision on the Official Cash Rate (OCR). Goodson judged the chance of a rate increase as evenly balanced, whereas ANZ Bank anticipates a 25 basis-point hike to 2.5% at the Reserve Bank’s meeting scheduled for next Wednesday.

The ANZ and Westpac shares declined 3.3% and 2.4% respectively, while several other large firms experienced falls including Fisher & Paykel Healthcare, Fletcher Building, and Vulcan Steel. Energy stocks Meridian and Mercury also slipped. In contrast, companies such as Mainfreight, Ebos Group, and SkyCity showed gains.

International markets presented a positive outlook. The US major indexes extended gains, with the Dow Jones Industrial Average up 0.26%, the S&P 500 increasing 0.79%, and the Nasdaq Composite rising 1.52%. Both the S&P 500 and Nasdaq recorded their best quarterly performances since 2020, while the Dow posted its strongest first half in five years. Conversely, Australia’s S&P/ASX 200 Index experienced a 0.69% decline, weighed down by weakness in banking, real estate, and retail sectors.

In the telecommunications sector, Spark noted concerns regarding the government’s proposed spectrum renewal policy for the 2300MHz and 2600MHz bands. The company warned that the current approach threatens to reduce available spectrum and create uncertainty that could affect investment in network infrastructure, particularly in regional areas.