The NZX 50 slipped 24 points, or 0.2%, to close at 13,811 on Thursday, giving back some of the gains from the previous session. The move followed a weaker close on Wall Street, where optimism over softer-than-expected inflation was tempered by a renewed rise in oil prices.
Investors continued to track developments in the Middle East, with elevated oil prices stoking concerns about renewed inflation pressures. At the same time, higher US Treasury yields weighed on sentiment, pushing the broader market lower. Traders were also cautious ahead of key US employment data due later in the week, seeking further guidance on the Federal Reserve’s next monetary policy move.
Losses were partly contained by domestic data showing New Zealand building permits rose in August at their fastest pace in four months, offering a modest boost to the local outlook.
Sector-wise, energy, financials, and communication services were the main drags on the index. Among the weakest performers were Delegat Group (-3.2%), Channel Infrastructure (-2.5%), Westpac Banking Corp. (-2.3%), Meridian Energy (-1.6%), Infratil (-1.5%), EBOS Group (-1.3%), and Chorus (-1.3%).
