Air NZ's share price brought back to earth; Heightened pandemic fears weigh on the market

The S&P/NZX 50 Index dropped 109.03 points, or 1 percent, to 11,225.28. Within the index, 31 stocks fell, 15 rose, and four were unchanged. Turnover was $151.2 million.

The benchmark gave back some of the previous session’s 3.5 percent surge after Stats NZ figures showed gross domestic product shrank 1.6 percent in the March quarter, more than some economists were predicting. A much bigger hit to economic activity is expected in the June quarter.

Asian stock markets and Wall Street futures were weaker as new coronavirus infections caused China to cancel flights, shut schools and block off more neighbourhoods to contain a sudden coronavirus outbreak. New coronavirus infections also hit record highs in six US states.

Peter McIntyre, an investment adviser at Craigs Investment Partners, said equity markets had been rising fast and were now slowing down as investors searched for a steady footing.