"At home, analysts are now saying there's an 85 per cent chance of our official cash rate reaching 4.75 per cent," Sullivan said.
Reserve Bank Governor Adrian Orr told the Trade Unions Council that the tightening cycle was very mature but there was still some work to do "to drop to our normal happy place, which is to watch, worry and wait."
The NZ dollar was trading at US56.80c against the American after recovering from an intraday low of US56.28c. The NZ dollar was last at that level on April 30, 2009 as the world began recovering from the global financial crisis.
Synlait Milk reported a solid result for the 12 months ending July with a 21 per cent increase in revenue to $1.66 billion and a return to profitability of $38.5m, up 235 per cent.
The milk processor was caught up in the market sell-off and declined 19c or 5.34 per cent to $3.37. However, its main customer a2 Milk increased 11c or 1.84 per cent to $6.10.
Synlait said it is well positioned in its second year of recovery, having progressed its structure, culture and capability and lifting execution. Synlait is paying its highest milk price of $9.30 per kgMS, as well as an incentive averaging 29c per kgMS. It is maintaining its forecast milk price of $9.50 per kgMS for the 2022-23 season.
Sullivan said Synlait produced a good result in a difficult trading year and its outlook is promising. "But I guess the investors were looking for slightly better numbers, and because Synlait's processing volumes are doing well a2 Milk benefitted."
The property sector was weak as interest rates rise and company valuations are affected – though they have the ability to increase inflation-adjusted rents. Argosy fell 7c or 5.51 per cent to $1.20; Stride was down 11c or 6.29 per cent to $1.64; Goodman Trust declined 7.5c or 3.54 per cent to $2.045; Precinct Properties decreased 7.5c or 5.58 per cent to $1.27; and Property for Industry was down 16c or 6.3 per cent to $2.38.
Contact Energy, declining 7c to $7.75, has opened its $200m five-and-a-half-year green bonds issue. Meridian, down 9c or 1.8 per cent to $4.91, told the market that NZ Aluminium Smelters is not reopening potline 4 at Tiwai Point, after the deadline of September 25 was passed.
Other energy companies Genesis was down 15c or 5.19 per cent to $2.74; Vector declined 19c or 4.42 per cent to $4.21; Mercury decreased 15.5c or 2.62 per cent to $5.75; and Manawa was down 13c or 2.19 per cent to $5.80.
Auckland International Airport declined 19c or 2.49 per cent to $7.43; Air New Zealand was down 2.5c or 3.42 per cent to 70.5c; Chorus decreased 14.5c or 1.92 per cent to $7.415; Port of Tauranga fell 24c or 3.64 per cent; Freightways lost another 35c or 3.43 per cent to $9.85; and Fletcher Building was down 18c or 3.49 per cent to $4.98.
Scales Corporation was down 34c or 6.8 per cent to $4.66 after announcing an expansion of its global proteins division in Australia. Scales is taking a 33 per cent interest in a new petfood processing operation in Melbourne and is buying 50 per cent of Fayman International for an investment of A$27m ($30.85m), funded from cash reserves.
Other decliners were SkyCity, down 13c or 4.56 per cent to $2.72; Serko falling 23c or 6.74 per cent to $3.18; NZME decreasing 6c or 5 per cent to $1.14; Gentrack losing 13c or 8.97 per cent to $1.32; and Vulcan Steel down 48c or 5.85 per cent to $7.72 after hitting a high of $11.01 on January 6.
Amongst the few gainers, Spark was up 3.5c to $5.125; Michael Hill increased 3c or 2.34 to $1.31; Foley Wines improved 7c or 4.93 per cent to $1.49; and Smartpay added 3.5c or 4.96 per cent to 74c.