The NZX 50 fell 69 points, or 0.5%, to 13,626 in Monday morning trading, snapping the previous session’s gains. The move followed weakness in US equity futures after Wall Street closed lower on Friday, dragged down by a selloff in chipmakers and mounting tensions in the Middle East. Sentiment was further pressured by persistently elevated oil prices in the wake of US strikes on Iran, which reignited inflation concerns and reinforced expectations of additional interest rate hikes.
Traders also adopted a cautious stance ahead of Tuesday’s release of Q2 inflation figures, with higher energy costs adding to uncertainty. On the domestic data front, New Zealand’s trade surplus narrowed sharply to NZD 0.02 billion in June from NZD 0.2 billion a year earlier, as export growth lagged behind the increase in imports.
Sector-wise, healthcare, utilities, real estate, and financials were the main drags on the benchmark index. Notable decliners included Fisher & Paykel Healthcare (-1.8%), F&C Investment (-1.8%), South Port NZ (-1.4%), Channel Infrastructure (-0.9%), and Chorus (-0.9%).
