NZX50 dips, dodging worst of Asian slide; KMD falls

New Zealand’s S&P/NZX 50 index nudged lower at the start of the shortened week, avoiding a sharper selloff across Asia as investors caught up with the slump in gold and silver prices after US President Donald Trump nominated Kevin Warsh to chair the Federal Reserve, causing a rethink on buying precious metals as an inflation hedge.

Local tech stocks Gentrack, Vista Group International and Serko were at the bottom of the local leaderboard, following the soft lead from Wall Street’s Nasdaq on Friday as investors saw Warsh’s appointment as an indication the Fed won’t cut interest rates aggressively.

KMD Brands was among the decliners after the retailer said sales growth was spurred on by discounting in the first five months of the financial year, which had squeezed margins.

Meanwhile, gains by heavyweights Auckland International Airport, Contact Energy and Mercury NZ helped soften the NZX50’s decline, with the defensive stock market outperforming most of Asia.