NZ shares fall as A2 extends decline, property stocks lose shine

The S&P/NZX 50 index dropped 63.45 points, or 0.7 percent, to 9,286.40. Within the index 36 stocks fell, seven gained and seven were unchanged. Turnover was $120.9 million.

The local market followed Wall Street's lead after the Federal Reserve raised its key interest rate. Global bond yields have been increasing since US President Donald Trump this month introduced smaller tariffs on Chinese goods than earlier feared. New Zealand's 10-year government bond yield has climbed 13 basis points to 2.91 percent in the past fortnight.

Rate-sensitive property stocks were weaker after the Fed's move today and as New Zealand's Reserve Bank held the official cash rate at 1.75 percent. Goodman Property Trust fell 2.2 percent to $1.535, Vital Healthcare Property Trust declined 0.9 percent to $2.12, Kiwi Property Group decreased 0.8 percent to $1.40 and Precinct Properties New Zealand slipped 0.7 percent to $1.44.

"We have seen bond yields rise a little in New Zealand this month and more so globally," said Matt Goodson, managing director at Salt Funds Management. "Their run over the last few days has been a little bit incongruous and they're certainly giving that back in a hurry today."