NZ sharemarket slips ahead of economic and fiscal update

The S&P/NZX 50 Index had a choppy session and closed at 11,302.41, down 41.7 points or 0.37%. The index has fallen in eight of the last nine trading days.

There were 44 gainers and 77 decliners over the whole market on light trading of 24 million share transactions worth $78m.

ASB said this week’s Pre-Election Economic and Fiscal Update will show a weaker fiscal position relative to the 2023 Budget forecasts as the economic outlook has softened.

The pace of activity is anaemic, with margin compression eroding corporate profits and the high cost of living weighing on household spending. This means a lower tax take for the government, the bank said.