tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Monday, May 16th, 7:04PM

Investments

rss
The Markets

NZ shares plunge as Putin invades Ukraine

New Zealand shares tumbled on Thursday after Russian President Vladimir Putin ordered a military operation in Ukraine which may be the beginning of a full-scale invasion.

Thursday, February 24th 2022, 6:24PM

by BusinessDesk

The S&P/NZX 50 Index had its biggest fall since the covid crash in March 2020, dropping 400 points, or 3.3%, to 11,797.30. Turnover was $112 million.

The Associated Press reported President Putin said he was deploying troops in neighbouring Ukraine, claiming the move was intended to protect civilians.

Other media reported explosions near the capital Kyiv and elsewhere in the country.

Ukrainian President Volodymyr Zelenskyy gave a speech warning the country would defend itself, saying in Russian: “When you attack us, you will see our faces, not our backs.”

The Ukrainian military doesn’t have the strength to repel a full-scale invasion and it is relying on Western nations to help punish Russia with economic sanctions.

One key sanction may be Europe cutting off oil and gas pipelines from Russia, which will force countries like Germany to reduce their energy usage which will slow economic activity.

“Either the Ukraine gets thrown under the Russian tank tracks in a gross act of appeasement, or the rest of the world aligned against Russian aggression will have to wear some economic pain,” said Jeffrey Halley, a senior market analyst at Oanda.

Russia is also a significant crude oil producer and may retaliate to sanctions by holding back supplies, potentially forcing other countries to draw down from strategic stockpiles.

Crude oil futures were moving close to $100 a barrel today, a level at which Devon Fund’s Greg Smith said starts to slow economic activity.

“High oil prices act as a bit of a handbrake on economic growth,” he told BusinessDesk.

As an example, Air New Zealand warned this morning – prior to the invasion – it was already expecting higher fuel costs to detract from earnings in the second half of the year.  

Every stock on NZ’s benchmark equity index fell and only 14 of the 187 total listed securities moved higher – all very small companies

Peter McIntyre, an investment advisor at Craigs Investment Partners, said investors were rushing to reduce their equity positions and move into safe-haven assets.

Stocks and bond yields fell in markets around the world, while the US dollar, gold and oil prices rallied.

The kiwi had fallen from 67.72 US cents to 67.15 US cents by 5pm shortly after the reports of explosions began.

Speculative or high-risk stocks were the hardest hit in the sell off today.

Sky Network Television dropped 7.4% to $2.49, Serko fell 7.3% to $4.82, A2 Milk Company declined 6.1% to $5.73 and Tourism Holdings dropped 5.9% to $2.40.

Energy companies also took heavy losses: Mercury NZ tumbled 7.3% to $5.56, Meridian Energy was down 6.3% at $4.71,

NZ Refining Company dropped 5% to 96 cents, the oil refinery recently began converting into a fuel import terminal and supplies airline fuel directly to Auckland Airport.

Air New Zealand dropped 4.1% to $1.52 and shares in the airport fell 3.4% to $6.88.

Fuel retailer, Z Energy's shares held up comparatively well, falling just 0.6% to $3.63 while NZ Oil & Gas made one of the few gains – climbed 2.9% to 53.5 cents.

Safe-haven stock, Spark NZ held up well with just half a percent fall to $4.59.

Tags: Market Close

« NZ equities shrug off bond rally and war threatMother of all reversals on NZX today »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • Brian Gaynor dies
    “RIP - a true icon and such a humble person who helped so many....”
    12 hours ago by p simone
  • Brian Gaynor dies
    “Very sad. Condolences to him family....”
    14 hours ago by sanet.drury@gmail.com
  • Brian Gaynor dies
    “Brian was someone you would always go and listen to if he was presenting at a seminar or conference, someone you would always...”
    14 hours ago by MikeBeuvink
  • Brian Gaynor dies
    “A true champion of the industry. My sincere condolences to family, colleagues and friends. ...”
    14 hours ago by Pragmatic
  • [GRTV] AIA rolls out direct life insurance plans
    “Thanks Lifeadviser1, and it is great to see you have been having a play in the system. You are right, in the original...”
    16 hours ago by Sam.Tremethick
Subscribe Now

AM Update - Your morning business news update

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 5.35 4.49 5.25 5.55
ANZ 5.54 5.15 5.85 6.15
ANZ Blueprint to Build 2.78 - - -
ANZ Special - 4.55 5.25 5.55
ASB Bank 5.35 4.49 5.25 5.55
Avanti Finance 5.45 - - -
Basecorp Finance 6.45 - - -
Bluestone 5.29 7.49 7.59 -
BNZ - Classic - 4.55 5.25 5.45
BNZ - Mortgage One 5.55 - - -
BNZ - Rapid Repay 5.55 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Std, FlyBuys 5.55 5.35 5.94 5.99
BNZ - TotalMoney 5.55 - - -
CFML Loans ▲6.45 - - -
China Construction Bank 5.50 5.40 6.14 6.40
China Construction Bank Special - 4.45 5.19 5.45
Credit Union Auckland 5.95 - - -
First Credit Union Special 5.85 4.70 5.20 -
Heartland Bank - Online 4.00 3.85 4.70 4.84
Heretaunga Building Society 5.95 4.80 5.50 -
HSBC Premier 5.49 4.39 5.15 5.39
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 5.25 ▲4.29 ▲5.09 ▲5.35
Kainga Ora ▲5.43 ▲4.57 ▲5.58 ▲5.85
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 5.00 5.55 6.19 6.39
Kiwibank - Offset 5.00 - - -
Kiwibank Special 5.00 4.55 5.19 5.39
Liberty 4.84 - - -
Nelson Building Society 5.95 4.95 5.85 -
Pepper Essential 3.44 - - -
Resimac 4.59 5.60 6.16 6.29
Lender Flt 1yr 2yr 3yr
SBS Bank 5.29 4.69 5.35 5.49
SBS Bank Special - 4.19 4.85 4.99
Select Home Loans 4.09 4.29 4.86 5.09
The Co-operative Bank - First Home Special - ▲4.19 - -
The Co-operative Bank - Owner Occ 5.45 ▲4.29 5.19 5.45
The Co-operative Bank - Standard 5.45 ▲4.79 5.69 5.95
TSB Bank 5.59 ▼5.14 6.05 6.15
TSB Special 4.79 ▼4.34 5.25 5.35
Unity 5.65 ▲4.80 ▲5.50 -
Wairarapa Building Society 5.24 4.55 5.20 -
Westpac 5.54 5.09 5.79 6.09
Lender Flt 1yr 2yr 3yr
Westpac - Offset 5.54 - - -
Westpac Special - 4.49 5.19 5.49
Median 5.45 4.55 5.25 5.52

Last updated: 16 May 2022 9:03am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com