New Zealand’s market started the day with more pep in its step before trailing into the red by early evening, not helped by healthcare manufacturer Fisher & Paykel Healthcare slumping almost 4.5%.

The S&P/NZX 50 Index fell 84.6 points, or 0.78%, to 10,832.03. Turnover was $107.4 million.

Increasing swap rates and inflationary worries continued to erode investors' confidence – with neither showing any sign of going away soon.

“Unfortunately, the inflation story just keeps on going and that leads to higher interest rates,” said Jeremy Sullivan, an investment adviser at Hamilton Hindin Greene.

Sullivan said NZ’s swap rates had increased “significantly” and five-year swap rates were at a twelve-year high. 

Two-year swaps on the other hand – which he said was often a guide for the official cash rate – were at a 14-year high. 

“It’s the fastest increase in swap rates in NZ’s history.”

On the equities market front, healthcare manufacturer Fisher & Paykel Healthcare slumped 4.4% to $18.73 and traded the most volume across the index – almost $11m.

Fleet company Eroad also fell 5% to $1.32.

Sullivan said logistics firm Mainfreight had a better day today and was up 1.5% to $66. Freightways went in the opposite direction and was down 4% to $9.66. 

Auckland International Airport had its annual meeting today and surprised shareholders by lifting its 2023 profit guidance to be between $100m and $130m thanks to a rebound in the aviation market.

Sullivan said AIA had a very healthy balance sheet and was looking “pretty strong” coming out of what had been a very tough period for the airport.

The stock was up 2.2% to $7.37 at close.

Steel distributor Vulcan Steel was up 0.4% to $7.75 and told the market that it was expecting to report earnings before interest, tax, depreciation and amortisation of between $215m to $235m for the 2023 financial year.

The guidance comes after a solid first quarter and a record financial year for the business, underwritten by the sale of 263,000 tonnes of steel products to more than 12,000 trans-Tasman customers.

Residential development company Winton Land said it plans to take Kāinga Ora to the Auckland high court under the Commerce Act, after alleging anti-competitive conduct. 

The claim follows last November's refusal by the housing agency to consider the developer's $10 billion Sunfield planned community for assessment as a 'specified development project' under the Urban Development Act.

Winton Land fell by 1.7% to $2.32 by the end of the day.

Heartland Bank rose 1.8% to $1.73 after it signed an agreement to purchase Australia's Challenger Bank for A$36m (N$39.8m).

The biggest jump today was payroll software provider PaySauce which rose 8.3% to 32.5 cents.

The NZ dollar was trading at 56.59 US cents at 3pm in Wellington, slightly down from 56.96 US cents yesterday.