New Zealand equities fall 0.6% as RBNZ rate-hike effects weighed
New Zealand stocks fell 84 points, or 0.6%, to close at 13,846, ending a prior-session gain run. The move came as traders digested the RBNZ’s 25 bps hike, while terms of trade and consumer confidence eased.
New Zealand stocks fell 84 points, or 0.6%, to close at 13,846 on Thursday, halting gains in the previous session, mainly weighed down by the technology, consumer discretionary, and industrial sectors.
Traders continued to assess Wednesday’s RBNZ monetary policy decision to hike interest rates by 25 bps.
The RBNZ signaled its determination to return price growth to its 1% to 3% target range.
Meanwhile, a rally on Wall Street overnight prevented the index from falling further, buoyed by solid gains in heavyweight technology stocks.
On the data front, New Zealand’s terms of trade fell further, with exports rising less than imports.
The latest data followed Wednesday’s figures, with consumer confidence also easing in August.
Among the decliners were 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%).