NZX 50 Falls for 3rd Straight Session, Ends 0.4% Lower
The NZX 50 fell 54 points, or 0.4%, to close at 13,680 on Tuesday, extending losses for a third straight session after trading resumed following the market’s closure on Monday for Labour Day. Traders were cautious ahead of the RBNZ’s and the Fed’s monetary policy decisions on Wednesday. The market expects the RBNZ to hike interest rates by 25 bps to 3%, following rate increases in July and September, amid high inflation driven by higher oil prices. Although annual inflation slowed to 3.7% in Q3, it remained above the RBNZ’s 1—3% target range. Caution persisted amid expectations that inflation would rise again following a temporary dip in fuel prices. However, lower oil prices limited the decline, easing inflation concerns and reducing expectations of an interest rate hike. The healthcare and consumer staples dragged down the index, with notable losses in Summerset Group (-4.7%), Seeka (-2.7%), Freightways Group (-2.0%), EBOS Group (-1.9%), A2 Milk (-1.7%), and Fisher & Paykel (-1.5%).
The NZX 50 fell 54 points, or 0.4%, to close at 13,680 on Tuesday, extending losses for a third straight session after trading resumed following the market’s closure on Monday for Labour Day. Traders were cautious ahead of the RBNZ’s and the Fed’s monetary policy decisions on Wednesday. The market expects the RBNZ to hike interest rates by 25 bps to 3%, following rate increases in July and September, amid high inflation driven by higher oil prices. Although annual inflation slowed to 3.7% in Q3, it remained above the RBNZ’s 1—3% target range.
Caution persisted amid expectations that inflation would rise again following a temporary dip in fuel prices. However, lower oil prices limited the decline, easing inflation concerns and reducing expectations of an interest rate hike. The healthcare and consumer staples dragged down the index, with notable losses in Summerset Group (-4.7%), Seeka (-2.7%), Freightways Group (-2.0%), EBOS Group (-1.9%), A2 Milk (-1.7%), and Fisher & Paykel (-1.5%).