The stock market fell for a third day as investors worried about the possibility of easing monetary stimulus by reducing central bank bond purchases.
The benchmark S&P / NZX50 index fell 31.378 points, or 0.24 percent, to 13,064.39 on Friday.
Harbor Asset Management said, “Globally, the markets have been very bad in the last 24 or 48 hours and this is mainly happening with the central banks and whether it is with easy monetary policy, especially with the purchase of bonds. They will begin to be less helpful. ” “We’re seeing some ups and downs about it,” said portfolio manager Shane Solly.
The European Central Bank has announced it will slow down its epidemiological bond-buying program following similar measures in New Zealand, Canada and Australia. The US Federal Reserve and the Bank of England have also indicated they plan to open their programs gradually.
* The stock market falls as investors expect interest rates to rise in the future.
* Fisher & Pike Healthcare’s 1.9% growth boosts S&P / NZX50.
* 19: Unequal global vaccination rates are creating a new economic divide.
“We’ve had a strong global reporting season and markets are now wondering if the central bank is on the verge of declining,” Solly said. “It’s blowing up some investors’ confidence – it’s not negative because it’s actually the right thing to do.”
Central banks were unlikely to move as fast in 2013 when the stimulus was pushed back too fast, signaling “tamper tantrum” sales in the markets.
“The central bank is talking about tipping, but it’s a very slow pace because they’re acknowledging that Cowade and Delta aren’t going away,” Solly said.
Infratel rose 1.8 percent to 7. 7.60 when it announced it would pledge 3 233 million (NZ $ 321 million) for the establishment of Gorin Energy, a renewable energy development platform based in Singapore. Which will focus on greenfield renewable projects across Asia.
“This is a significant investment for them, an axis in the Asian renewable market,” Solly said. “This is a sector that is experiencing very attractive growth in the medium term.”
Gentlemen weakened amid concerns about regulatory risk.
Trust Power fell 2.2 percent to 7. 7.59, Meridian Energy fell 1.5 percent to 5. 5,105, Genesis Energy fell 0.3 percent to 3. 3.34 and Mercury fell 0.5 percent to 6. 6,645. Contact Energy rose 0.5 percent to 8. 8.14.
Sanford fell 3.3 percent to 5. 5.03. The stock has risen 13% so far this month after Ngāi Tahu Investments bought shares in the fishing company at 5.50 per share. He told Sanford that he had no current plans to launch an acquisition, and that he had reduced his potential stake to less than 20%.
Rayman Healthcare rose 1.4 percent to 15 15 as a 2-level move beyond Auckland meant people could potentially relocate to retirement villages.
Air New Zealand raised its expectations for an international travel outlook by 1% to 1.5 1.545 as Australia plans to reopen its borders later this year.
On Wall Street, the S&P 500 and Nasdaq are on track for their first weekly losses in three weeks.
– With AP.