New Zealand shares fell 198 points, or 1.5%, to close at 12,702 on Tuesday, reversing early gains and extending their losing streak to a fourth consecutive session. The benchmark index dropped to its lowest level in nearly eight months, with broad-based weakness across tech services, financials, healthcare, and logistics.
Sentiment deteriorated after central bank governor Anna Breman cautioned that interest rates may need to rise if oil-driven inflation persists amid the ongoing conflict in the Middle East. She also noted that targeted fiscal support would be more effective than monetary policy in cushioning the impact on the economy.
Risk appetite was further dampened by a sharp fall in U.S. stock futures, as the war involving Iran continued and energy prices appeared likely to remain elevated for longer. Investors also turned more cautious ahead of the release of New Zealand’s March business and consumer confidence data later this week.
Among the session’s biggest losers were Gentrack Group (-7.2%), A2 Milk Co. (-3.3%), Mercury NZ (-3.0%), Freightways Group (-2.6%), and Fisher & Paykel Healthcare (-2.2%).
