Market heavyweight Fisher & Paykel Healthcare remains well down on its share price a year ago above $32.
The New Zealand sharemarket began the week with a 0.5% slip, as investors keep an eye on inflation-taming interest rate moves in the United States.
The benchmark S&P/NXZ50 Index closed down 64 points at 11,198.68 on Monday, having finished last week on a steady note.
“We’re currently down, and got weaker as the day has progressed,” said Peter McIntyre, investment adviser at Craigs Investment Partners.
“Asia was pretty mixed today and US futures are slightly weaker as well. I think there’s definitely a degree of cautiousness about trading this week.”
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The United States Federal Reserve was expected to lift its benchmark rate again on Wednesday (US time) in its continued war against inflation.
US inflation is at a new four-decade high with the consumer price index rising 9.1% over the past year to June, the biggest yearly increase since 1981. Along with other countries, including New Zealand, the US is seeing rising prices squeeze household budgets.
The Fed is tipped to announce its second 0.75% point rate rise in a row, putting its benchmark rate in a range of 2.25% to 2.5%, the highest level since 2018.
In New Zealand, the official cash rate has risen from 0.25% in August last year to 2.5%, and is forecast to peak at 4% during the second half of next year.
Homes used to cost a lot less, but in previous decades home loan interest rates were much higher. Home loans rates are however on the rise as the Reserve Bank Te Pūtea Matua has been raising the official cash rate to fight inflation.
In addition, investors were waiting to see the bottom line as international financial reporting season ramps up this week.
McIntyre said a big week for results from companies on the US benchmark S&P500 Index included Google parent Alphabet, Amazon, Apple, Facebook parent Meta, and Microsoft.
In New Zealand, a number of companies were due to hold annual shareholder meetings this week including Pacific Edge, Mainfreight, Ryman Healthcare, and Eroad, all on Thursday.
Market heavyweight Fisher & Paykel Healthcare fell 1.9% to $21.39, well down on its share price a year ago of $32.45.
Among other blue chips, Meridian Energy lost 0.4% to $4.80, Auckland Airport fell 2% to $7.15, Spark gained 0.2% to $4.97, Mercury Energy was up 0.8% at $5.90, Mainfreight was up 0.3% at $70.75, and Ebos rose 1% to $39.
Of the 185 stocks to trade on the NZX main board, 57 gained and 84 declined.
Across the Tasman, the benchmark S&P/ASX200 Index was just negative, down 0.1% at 6784.6.
On Wall Street on Friday, the benchmark S&P 500 fell 0.9% to 3961.63, breaking a three-day rally.
The blue chip Dow Jones Industrial Average slipped 0.4% to 31,899.29, while the tech-heavy Nasdaq sank 1.9% to 11,834.11 following worse-than-expected profit reports from Snap, Seagate Technology and other tech-oriented companies.
In the US, this week’s calendar includes a number of economic reports including the Commerce Department’s first estimate of the economy’s output in the April-June quarter, following a 1.6% decrease in the first quarter.
– With AP
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