New Zealand shares fell 108 points, or 0.8%, to close at 13,711 on Thursday, marking their lowest finish since July 31 and reversing gains from the previous session. The decline followed a weak lead from Wall Street, where stocks retreated on the back of a jump in US Treasury yields and rising oil prices.
Oil prices extended their advance, heightening inflation concerns and reinforcing expectations of further interest rate hikes by major central banks, including the RBNZ, which has already raised rates at its past two meetings. Investors were also positioning ahead of key data releases: US inflation figures due later this week, which may shape the Fed’s next policy decision, and New Zealand’s August manufacturing PMI set for release on Friday.
Sector-wise, industrials, utilities, and real estate exerted the heaviest drag on the market. Notable decliners included Delegat Group (-3.9%), Briscoe Group (-3.2%), Fletcher Building (-2.6%), ANZ Group (-1.5%), Mainfreight (-1.4%), Westpac Banking Corp. (-1.3%), and Freightways Group (-1.2%).
