The NZX 50 fell 51 points, or 0.4%, to 13,641 in Friday morning trading, hitting its lowest level since September 16 and reversing a modest gain from the previous session. The benchmark followed Wall Street lower, as renewed selling in technology stocks and a further rise in oil prices weighed on global sentiment.
Persistent strength in oil prices continued to stoke concerns about inflation and the prospect of further interest rate hikes. Caution also prevailed ahead of next week’s releases of New Zealand food inflation and business PMI data, as well as inflation figures from the US and China that could offer additional insight into economic conditions in both economies.
Losses were broad-based, with financials, industrials, and consumer discretionary names exerting the most downward pressure on the index. Notable decliners included Infratil (-2.2%), Ventia Services Group (-1.6%), South Port NZ (-1.2%), and Auckland International Airport (-1.1%). For the week, the NZX 50 was on track for a 0.3% decline, setting up what would be its second straight weekly loss.
