NZX50 slides 1.5% this week as Middle East conflict leaves world on edge

New Zealand’s S&P/NZX 50 index fell for a third week in a row as the escalating conflict in the Middle East drives up fuel costs, and as bond markets start betting on upcoming rate hikes from the Reserve Bank to quell any inflationary pressures.

Central bank governor Anna Breman will provide some guidance on where the Reserve Bank’s moving when she delivers a speech next week, getting strong leads from her peers in the US, Europe, Japan and Australia, who all reviewed policy this week.

KMD Brands was the weakest performer on the week after reports emerged across the Tasman that the retailer tapped Goldman Sachs to help it shore up its balance sheet at a time when the share price is trading at all-time lows.

The NZX50 dropped below 13,000 for the first time since August as it declined on Friday, with heavyweight companies such as Fisher & Paykel Healthcare, Contact Energy and Precinct Properties NZ the biggest drags as index reweightings drove heavy trading by large funds that track those benchmarks.