The NZX 50 slipped 51 points, or 0.4%, to close at 13,202 on Thursday, breaking a two-session winning streak and ending at its lowest level in more than two weeks. The decline came after the benchmark had briefly touched its highest mark since May 7 in the previous session.
The local market followed a weak lead from Wall Street, where equities retreated on Wednesday as rising tensions in the Middle East pushed oil prices higher. Sentiment was further dampened by concern over the latest US inflation data, with May inflation accelerating to its fastest pace in three years. That outcome strengthened expectations that the Federal Reserve will keep interest rates on hold for an extended period.
Investors also stayed cautious ahead of Friday’s release of New Zealand’s May business PMI, after the index in April had posted its slowest expansion in seven months.
Losses were concentrated in financials, materials, and industrials, which exerted the most pressure on the benchmark. Notable decliners included Infratil (-1.9%), Mainfreight (-1.8%), Ebos Group (-1.2%), Fletcher Building (-1.0%), and Westpac Banking Corp. (-0.9%).
