NZX50 joins global rout; power companies slide on Meridian expansion

New Zealand’s S&P/NZX 50 index joined a global rout after stronger-than-expected US jobs data on Friday fuelled expectations that the Federal Reserve might have to hike interest rates this year, while renewed fighting between Israel and Iran sent oil prices higher.

Vista Group International led the benchmark lower in a broadly soft day for local tech companies, while data centre investor Infratil was among the slew of companies on the red side of the ledger.

The power companies were among the bigger drags on the local board, with Forsyth Barr downgrading its ratings for Mercury NZ, Genesis Energy and Meridian Energy on Meridian’s draft approval to use contingent hydro storage at Lake Pūkaki likely to weigh on electricity prices.

Meanwhile, exporters including a2 Milk Co, Fisher & Paykel Healthcare and the Fonterra Shareholders’ Fund were among the few gainers on the day as a weaker kiwi dollar softened the hard edges of the day by increasing the value of their foreign income.