The NZX 50 fell 61 points, or 0.5%, to close at 12,885 on Thursday, its lowest finish since April 1. The benchmark reversed early-session gains and wiped out advances from the previous three trading days as investors grew increasingly concerned about a slower economic recovery.
Finance Minister Nicola Willis said Thursday that the recovery had been “delayed but not derailed,” citing the impact of the conflict involving Iran, which has driven up fuel costs and undermined both business and consumer confidence. Sentiment was further hit by Moody’s Ratings’ decision on Wednesday to revise New Zealand’s credit outlook to negative from stable, following a similar move by Fitch Ratings in March.
Sector-wise, healthcare, materials, consumer discretionary, and financials were the main drags on the index. Notable decliners included Fisher & Paykel Healthcare (-3.0%), Colonial Motor Company (-2.3%), Ebos Group (-1.4%), ANZ Group (-0.9%), F&C Investment Trust (-0.8%), A2 Milk (-0.8%), Chorus (-0.6%), and Mainfreight (-0.5%).
