However, rising yields remained a big factor and would continue to dominate sharemarkets through the year, Main said. As inflation rises, interest rates go up, giving investors an alternative to stocks as returns from money in the bank also rise. The market was not being decimated, “but we’re seeing some of the cream come off”, he said.
LAWRENCE SMITH/Stuff
The New Zealand sharemarket clawed back most of Monday’s losses with a 3.4 per cent jump in the price of Fisher & Paykel Healthcare, to $28.29 a share. The big challenge for investment markets this year was the stand-off between central banks, which expected inflation to rise but believed it would be temporary, and investors, who believed inflation would continue to rise and central banks would be caught out unless they moved to stop it.
Market close: Property stocks tumble as bond yields rise
9 Mar, 2021 04:36 AM
4 minutes to read
NZ Herald
By: Graham Skellern
The interest rate sensitive property stocks tumbled on the back of rising bond yields but overall the New Zealand sharemarket steadied itself from recent falls and went the other way. The S&P/NZX 50 Index gained significantly in late trading, closing 59.96 points or 0.5 per cent ahead at 12,145.15 after reaching an intraday low of 12,057.9. There were 73 gainers and 68 decliners over the whole market with 66 million shares worth $211.2 million changing hands.
Matt Goodson, managing director of Salt Funds Management, said the market has a flighty and heavy feel about it. You are getting 3/4/5 per cent price movements for no obvious reason.
NZX50 in technical correction, but interest rate moves overshadow market stuff.co.nz - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from stuff.co.nz Daily Mail and Mail on Sunday newspapers.
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