The NZX 50 slipped 20 points, or 0.1%, to 13,616 on Thursday, falling for a fourth straight session and touching its lowest level since July 2. The decline was led by weakness in communication services, energy, consumer staples, and financials.
Sentiment remained fragile as investors tracked developments in the Middle East conflict and a further rise in oil prices, which have intensified inflation concerns and reinforced expectations of additional interest rate hikes. Traders were also cautious ahead of Friday’s release of June food inflation figures, following an acceleration in May.
On Tuesday, RBNZ Chief Economist Paul Conway cautioned that persistent inflation, exacerbated by recent supply shocks stemming from the Middle East, could necessitate further tightening. Risk appetite was also dampened by weaker-than-expected data from China, where the economy expanded at its slowest pace in three and a half years.
Notable decliners on the day included Summerset Group (-2.6%), Auckland International Airport (-1.4%), Scales Corporation (-1.2%), A2 Milk (-1.1%), and Hallenstein Glasson (-1.1%).
