Salt Funds Management managing director Matt Goodson said the market had pulled back from the unusual strength in the market yesterday, likely down to KiwiSaver flows.
He said the Reserve Bank’s decision was largely as economists had expected.
“You’d have to term it a dovish hold because they’re trying to balance. Right now growth momentum’s weak, but you can certainly see some hope for the future as past rate cuts feed through and as the rural boom feeds through,” Goodson said.
“At the same time, inflationary pressures have just picked up a bit in the short term, particularly from food prices, which obviously is also what’s behind the rural boom with dairy and beef.”
Goodson pointed to a2 Milk, which faced pressure for a second day after a weak update on the Chinese market.
“Even though it doesn’t directly impact a2, and it may be that a2 is taking share in that Chinese infant formula market, I think it’s put a bit of a cloud over the sector in the short term.
“There was also a broker downgrade out of Australia on it, so that might explain the weakness there.”
A2 Milk’s share price fell 34c to $8.04 after 644,945 shares traded hands to the value of $5,177,714.19.
Other large movements on the board today included Precinct Properties and Kiwi Property Group, with the wider Property Index down roughly 1.7% after closing up 2.7% on Tuesday.
Precinct Properties had 1,165,884 shares change hands to the value of $1,442,988.12, while Kiwi Property Group had 4,287,714 shares worth $4,101,810.78 change hands.
Elsewhere, SkyCity Entertainment’s share price rose strongly, up 5.21%, after 728,166 shares changed hands to the value of $713,235.73.
Wall Street stocks dipped Tuesday, falling for a second straight session as US President Donald Trump added tariff threats on copper and pharmaceuticals to his broadening trade agenda.
Trump announced plans for a 50% duty on copper imports and a potential 200% levy on pharmaceuticals a day after the White House sent letters to Japan, South Korea and other countries about levies from August 1.
The onslaught has reinstated trade as top of mind on Wall Street after attention had focused on Capitol Hill and the Middle East in recent weeks.
The Dow Jones Industrial Average finished down 0.4% after a roller-coaster session at 44,240.76.
The broad-based S&P 500 slipped 0.1% to 6225.52, while the tech-rich Nasdaq Composite Index was flat at 20,418.46.
In contrast to Trump’s April tariff announcements, which sent equities sharply lower, the market is “somewhat shaking it off”, said Victoria Fernandez of Crossmark Global Investments, who noted the President’s record of tempering tariffs that were initially severe.
– Additional reporting AFP
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
