NZ shares fall for 7th day as US bond yields hold sway
The S&P/NZX 50 index dropped 77.12 points, or 0.8 percent, to 9,069.98. Within the index, 32 stocks fell, 13 gained, and five were unchanged. Turnover was $104.6 million.
New Zealand's benchmark index has dropped 3 percent during the past seven sessions as rising US bond yields inject new volatility into financial markets. The yield on US 10-year Treasuries has climbed to 3.24 percent on growing expectations the Federal Reserve will keep raising interest rates, reducing the attraction of equities.
Greg Smith, head of research at Fat Prophets, said investors are readjusting to higher interest rates, which is putting pressure on stocks that have been trading at high valuations.
"In a rising interest rate environment, equities still win the beauty parade, but cash is becoming more attractive than it has been," he said. "New Zealand is still one of the higher-yielding markets around."
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