Economy

NZX down 4.9 percent at opening

The New Zealand sharemarket has fallen to its lowest level in more than a year following slides in Wall Street on Friday and the Reserve Bank's latest move to shore up the economy.

The benchmark NZX Top 50 index has fallen about 450 points, or 4.9 percent, in early trading.

The market is now at its lowest level since January 2019.

Once again virtually every stock in the index has fallen with tourism, travel, and hospitality businesses showing some of the biggest falls.

Casino operator Sky City is the hardest hit, falling more than 12 percent.

It's been forced to shut its Adelaide casino because of the federal government's order, and is preparing for a similar ban to hit its New Zealand operations.

Early on Monday morning, the Reserve Bank said its Monetary Policy Committee (MPC) decided to implement a large scale asset purchase programme (LSAP) of New Zealand government bonds.

The Bank's statement said the asset purchase would take place over the next 12 months and involve up to $30 billion of New Zealand government bonds across a range of maturities in the secondary market.

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

Credible information is crucial in a crisis.

The pandemic is pushing us into an unknown and uncertain future. As the crisis unfolds the need for accurate, balanced and thorough reporting will be vital. Newsroom’s team of journalists is working hard to bring you the facts but, now more than ever, we need your support.

Reader donations are critical to what we do. If you can help us, please click the button to ensure we can continue to provide quality independent journalism you can trust.

Comments

Newsroom does not allow comments directly on this website. We invite all readers who wish to discuss a story or leave a comment to visit us on Twitter or Facebook. We also welcome your news tips and feedback via email: contact@newsroom.co.nz. Thank you.

With thanks to our partners