New Zealand shares slipped 84 points, or 0.6%, to close at 13,846 on Thursday, snapping the gains recorded in the previous session. The decline was led by weakness in the technology, consumer discretionary, and industrial sectors, as investors continued to digest Wednesday’s RBNZ decision to raise the official cash rate by 25 basis points. The central bank reaffirmed its commitment to bringing inflation back within its 1%–3% target band.
A strong overnight performance on Wall Street, driven by solid advances in major US technology stocks, helped limit the local market’s losses. On the macroeconomic front, New Zealand’s terms of trade deteriorated further, as export growth lagged behind the increase in imports. This followed Wednesday’s data showing a softening in consumer confidence in August.
Notable decliners on the day included Gentrack Group (-3.7%), Fletcher Building (-2.3%), A2 Milk (-2.1%), Chorus (-1.9%), Briscoe Group (-1.8%), Mainfreight (-1.5%), and Freightways Group (-1.1%).
