The S&P/NZX 50 index posted its biggest one-day slump since the height of the covid-19 pandemic as fears mount that US President Donald Trump’s tariff war will tip the world’s biggest economy into recession.
The NZX50 dropped 449.4 points, or 3.7%, to 11,775.88, entering correction territory where it’s more than 10% below its peak in December. Turnover was $158.4 million across the main board, with 124 stocks weaker and just 19 gaining.
Stock markets around the world took another leg lower after Wall Street was pummelled on Friday when China retaliated in kind to Trump’s tariff programme, confirming fears that the global trade order was in for a bumpy ride. Over the weekend, more than 50 countries have sought to open trade talks with the White House.
New Zealand’s benchmark index got off relatively lightly compared to its peers across the Asia Pacific, with Australia’s S&P/ASX down 4.5% in late trading, while Japan’s Nikkei 225 triggered a 10-minute circuit breaker pause as it dropped 6.9%, and Hong Kong’s Hang Seng tumbled 11%.
“Until we get some certainty on what’s happening with negotiations and what the outcomes will be and whether there’s fluidity there or he’s holding the line, we’re going to have these trading days where it’s pretty volatile,” said Peter McIntyre, an investment adviser at Craigs Investment Partners.
ANZ Group Holdings dropped 7.3% to $29 as it led the NZX50 lower, with Australia’s banks whacked across the Tasman. Westpac Banking Corp sank 6.7% to $31.60. Heartland Group Holdings fell 5.3% to 71 cents.
Global logistics group Mainfreight slumped 7% to $57.80, while Fletcher Building fell 6.9% to $2.96 and Channel Infrastructure declined 6.7% to $1.80.
Deal or no deal
Stock market operator NZX fell 5.7% to $1.47 with the heightened market volatility weighing on the prospect of new listings.
Fisher & Paykel Healthcare, which has manufacturing operations in Mexico, declined 3.3% to $33.45.
Air New Zealand was the most heavily traded company on a volume of 3.7 million shares, falling 4.1% to 58 cents, while Spark New Zealand declined 2.4% to $2.03 on a volume of 3.3 million.
KMD Brands dropped 4.4% to 33 cents after the retailer said its Rip Curl and Oboz brands have significant operations in the US, with both manufacturing products in Asia.
Fishing group Sanford posted the biggest gain on the benchmark index, rising 0.4% to $4.87, while Goodman Property Trust increased 0.3% to $1.91.
Oceania Healthcare and Property for Industry were both unchanged at 60 cents and $2.10 respectively.
The kiwi dollar extended its decline, falling to 55.68 US cents at 5pm in Auckland from 55.96 cents at 7am and 57.33 cents last week.
Reporting by Paul McBeth. Image from Curious News.