New Zealand shares fell yesterday to their lowest level this year as offshore volatility weighed on sentiment again with markets across Asia weaker, with the exception of Australia.
The S&P/NZX 50 Index fell 22.81 points to 5546.88. Within the index, 23 stocks fell, 16 rose and 11 were unchanged. Turnover was $143 million.
An uncertain outlook for China's economy spooked investors and weighed on equities.
Australian banking stocks did not fare so well and dual-listed Westpac led the New Zealand benchmark index lower, down 3.5 per cent to $32.57. ANZ fell 2.5 per cent to $29.50. Heartland New Zealand declined 1.7 per cent to $1.13. Metlifecare slipped 1.7 per cent to $4.18. Spark fell 1.3 per cent to $3.17.
"It's a combination of things. There's China, although a fair bit of that's played out really in terms of their own market, but the fear is more their own economy," said Matthew Goodson, managing director at Salt Funds Management. "At the same time we're seeing the US market start to focus on the possibility of a September rate hike, which appears to be a fifty-fifty call at the moment."