Fletcher, US CPI cast shadow over NZ sharemarket
The S&P/NZX 50 Index was saved by a late rise after earlier falling more than 1.1% and closed at 11,661.32, down 78.35 points or 0.67%.
The index has fallen 1.7% in three trading days. There were 95 decliners and 42 gainers over the whole market on volumes of 34.16 million share transactions worth $109.71m. Fletcher Building dominated the trading with 8.26m shares worth $29.43m changing hands.
Greg Smith, head of retail with Devon Funds Management, said the market was affected by the Fletcher drama and blow-back from a hotter-than-expected consumer price index (CPI) in the United States.
The US January CPI increased 0.3% for annual inflation of 3.1% against economists’ forecasts of 0.2% and 2.9%. Rent rises drove the CPI increase, which more than likely dashed hopes of an early interest rate cut by the Federal Reserve.
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