The NZX 50 slipped 22 points, or 0.2%, to close at 13,206 on Thursday, giving up its early gains and wiping out the prior session’s advance. The retreat came after the index had reached its highest level since May 7 just a day earlier, as renewed inflation worries were stoked by rising oil prices amid the intensifying conflict in the Middle East.
Investors also weighed comments from a senior central banker, who noted that the peak in interest rates will depend on how far weaker demand, driven by higher energy costs, restrains other price pressures. This followed the Reserve Bank of New Zealand’s decision on Wednesday to leave interest rates unchanged. RBNZ Governor Anna Breman told Morning Report that the official cash rate is expected to rise to around 3.0%–3.25% over time.
Most sectors finished in negative territory, including materials, consumer discretionary, consumer staples, and financials. Among notable decliners, ANZ Group lost 2.5%, A2 Milk fell 2.1%, Chorus dropped 1.7%, Ebos Group slid 1.6%, Westpac Banking Corp eased 1.1%, and Auckland International Airport also retreated 1.1%.