Yield stocks sold off; Skellerup drops
The S&P/NZX 50 Index dropped 102.87 points, or 1 percent, to 10,622.35. Within the index, 33 stocks fell, 12 rose and five were unchanged. Turnover was $169.1 million, of which Sanford accounted for $66.9 million.
Investors pared back their expectations for central banks around the world to cut interest rates further. Central bankers are converging in their annual symposium in Jackson Hole, Wyoming, and investors are keenly waiting for Federal Reserve chair Jerome Powell's speech after two regional Fed presidents said no more cuts were needed in the US.
"Yield plays have been sold off a little bit, so that's the power companies and infrastructure stocks that have done so well over the last 12 months giving back some of those gains. Swap rates are up quite a bit," said Grant Davies, an investment advisor at Hamilton Hindin Greene. Swap rates are used as a benchmark to set interest rates on corporate bonds.
Meridian Energy fell 4.1 percent to $4.77 and Chorus declined 2.7 percent to $5.14. Both companies are reporting on Monday. Mercury NZ was down 2 percent at $5.095, Auckland International Airport slipped 2 percent to $9.40 and Port of Tauranga declined 1.6 percent to $6.06.
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