New Zealand stocks fall 0.6% as RBNZ raises rates

  • New Zealand stocks fell 84 points as technology, consumer discretionary and industrial shares declined.
  • 13,846 was the Thursday close after a 0.6% drop.
  • RBNZ raised interest rates 25 basis points on Wednesday and retained its 1% to 3% target range.

New Zealand stocks fell 84 points, or 0.6%, to close at 13,846 on Thursday, reversing the previous session’s gains. Technology, consumer discretionary and industrial shares led the decline as traders continued assessing the Reserve Bank of New Zealand (RBNZ), the country’s central bank, raising interest rates by 25 basis points on Wednesday. The RBNZ reiterated its determination to bring inflation back within its 1% to 3% target range. A rally on Wall Street, supported by strong gains in heavyweight technology stocks, helped prevent a deeper fall. New Zealand’s terms of trade also deteriorated as exports increased less than imports, following data released Wednesday showing consumer confidence eased in August. Gentrack Group fell 3.7%, Fletcher Building declined 2.3%, A2 Milk dropped 2.1%, Chorus lost 1.9%, Briscoe Group slipped 1.8%, Mainfreight decreased 1.5%, and Freightways Group fell 1.1%.

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