NZ Equities Slide as Oil Prices Persist, Interest Rate Hike Looms

The New Zealand Equities market ended Wednesday down 0.4% to close at 13,822 points.

This decline wiped out gains from the previous two sessions and marked a drop of 54 points from its highest level since September 7.

Traders were cautious ahead of the warning from RBNZ Governor Anna Breman that inflation could be higher if high oil prices persist, raising expectations of an interest rate hike at the upcoming meeting.

Easing in oil prices capped the fall due to eased tensions in the Middle East amid hopes of renewed US-Iran talks.

The biggest laggards were Gentrack Group, down 5%, Freightways Group, down 3.4%, and several other energy companies including Mercury NZ, Meridian Energy, Mainfreight, Contact Energy, and EBOS Group.