Kiwi shares join global selloff

  • 24/08/2015
Kiwi shares join global selloff

New Zealand shares have suffered their biggest decline in almost four years after weak Chinese manufacturing data added to concern about the world's second-largest economy and sapped risk appetite.

The S&P/NZX 50 Index fell almost two percent on Monday, heading for the biggest daily decline since October 2011, and Australia's S&P/ASX 200 Index sank 2.2 percent.

They were the first two markets in the Asia Pacific region to open following a slump in US and European stocks on Friday.

"Expectations are markets will be down pretty much across the board," said Grant Williamson, a director at brokerage Hamilton Hindin Greene.

But the selloff could lure some investors back and "it will be interesting to see whether the bargain hunters come in to push prices back up."

New Zealand is about halfway through its earnings season and there was still a prospect that the local stock market would be underpinned by company results, he said.

Auckland International Airport fell 2.7 percent to $5.07 after posting full-year earnings that beat its own guidance and Chorus fell 3.6 percent to $2.65 after reporting a 39 percent drop in profit that missed a forecast from Forsyth Barr.

The brokerage is expecting a median two percent gain in normalised profit across the 48 listed companies it follows.

NZN