The NZX 50 fell 69 points, or 0.5%, to 13,691 in Thursday morning trading, giving back gains from the previous session. The move followed overnight weakness on Wall Street, where stronger-than-expected US inflation data reinforced expectations of further Federal Reserve rate hikes.
Sentiment was also weighed down by rising oil prices, which heightened inflation concerns and underscored the impact of the Reserve Bank of New Zealand’s tightening cycle, after rate increases in both July and September. Investors stayed cautious ahead of Friday’s releases of New Zealand food inflation figures and the business PMI.
All sectors were in negative territory, with financials, energy, technology, and communication services leading the decline. Notable losers included South Port New Zealand (-2.5%), Infratil (-2.0%), Chorus (-1.2%), Port of Tauranga (-1.0%), Channel Infrastructure (-0.9%), Fisher & Paykel (-0.8%), Hallenstein Glasson (-0.8%), Freightways Group (-0.7%), and Meridian Energy (-0.7%).