The NZX 50 slipped 40 points, or 0.3%, to finish at 13,656 on Tuesday, after a flat performance in the previous session, as investors digested fresh inflation data and its implications for the Reserve Bank of New Zealand’s upcoming interest rate decision. The latest figures showed inflation accelerating to its fastest pace since Q4 2023. Persistently elevated oil prices added to inflation worries, reinforcing expectations that further rate hikes may be needed.
RBNZ Chief Economist Paul Conway recently cautioned that stubborn inflation could necessitate additional monetary tightening. Sentiment was further dampened by an overnight decline on Wall Street and rising geopolitical tensions in the Middle East.
Losses were led by communication services, consumer staples, and healthcare stocks. Notable decliners included A2 Milk (-1.8%), Ebos Group (-1.7%), Freightways Group (-1.6%), Fisher & Paykel Healthcare (-1.5%), and Scales Corporation (-1.5%).
