Economy

NZ sharemarket hit further by coronavirus

The New Zealand sharemarket has dropped sharply in early trading on Monday morning as it mirrors other global market concerns about the coronavirus.

The NZX Top 50 Index has fallen about 220 points, about 1.9 percent.

Tourism and travel stocks have been the hardest hit, as travel bans limit the number of tourists, delay the arrival of students, and lead to flight suspensions.

Air New Zealand and Auckland International Airport are down close to 3 percent, and campervan rental company Tourism Holdings was down 6 percent.

The market's top stock, A2-Milk, which is heavily reliant on China as a buyer of its infant formula and dairy products, fell more than 3 percent.

Overseas markets slid sharply at the end of last week as investors worry about the effect the virus may have on world growth.

Pre-market indicators point to hefty falls on markets in Australia, Japan, and China which resumes trading after the extended Lunar New Year holiday.

This article was originally published on RNZ and re-published with permission.

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