New Zealand’s benchmark index lost some of its sparkle after falling 1.3% when it opened this morning.
This follows a similar tune from big international markets with the tech-heavy Nasdaq falling 5% to its lowest level since November 2020 while the Dow Jones Industrial Average declined 3.1% to a 26-month low.
Peter McIntyre, an investment adviser at Craigs Investment Partners, said a “big-sell off” in most markets overnight flowed into New Zealand’s market.
Still, considering how much they’d fallen, NZ’s market hadn’t been as badly affected, he said.
“All things equal we’re actually doing alright at the moment,” he said.
“The real test will come after the Australian market opens later today and what decisions investors decide to make before we go into the weekend.”
He said the weakness in equity markets followed US economic data suggesting the Federal Reserve was concerned that inflation was getting “somewhat out of control”.
“That's been a key concern for markets overall and the potential for stagnant growth and high inflation coming onto the table as well,” he said.
McIntyre said recent earnings reports by big tech companies were generally weaker – such as Amazon and Meta – and had dragged down the market.
On the NZX this morning, healthcare and animal care products wholesaler Ebos Group was the biggest stock that woke up on the wrong side of the bed, falling 2% to $41.53.
NZ’s largest telecommunications and digital services company Spark dropped 1.5% to $4.905 in early trading while Pushpay fell 2.9% to $1.32. The church software company is currently facing a takeover and today noted a new substantial shareholder on its register, with US investment firm Brown Capital Management saying it’s built a 5% stake.
National carrier Air New Zealand fell 1.8% to 80 cents, and Auckland Airport dropped 1.7% to $7.75.