Business

NZX drops more than 3% in worst session since Covid-19 pandemic

Companies exporting to the US or with significant US assets or income at risk from a slowdown such as tourism are the hardest hit.

The New Zealand sharemarket has fallen sharply today following the rout on international markets at the end of last week. The benchmark top-50 index has fallen more than 3.1 percent, the biggest single session fall since the start of the pandemic in March 2020.

A large number of investment funds based on US stocks and assets have also slid. Companies exporting to the US or with significant US assets or income at risk from a slowdown such as tourism are the hardest hit. Losing stocks outnumber rises by nearly five-to-one.

The falls may be exacerbated when the Australian market opens at midday, with indicators pointing to a fall of more than 4 percent across the Tasman. The New Zealand dollar fell further against most major currencies, touching a three-month low against the US dollar. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

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