NZX50 sinks as investors clear the decks for Infratil’s Contact selldown

New Zealand’s S&P/NZX 50 index sank as US President Donald Trump’s latest threat against Iran kept bond yield elevated and sapped investors’ appetite for riskier assets such as stocks.

Meanwhile, fund managers sold power companies Mercury NZ and Meridian Energy to clear their books for Infratil’s sale of a 5% stake of Contact Energy at a discount, providing the infrastructure investor with some extra cash to put to work elsewhere.

Vista Group International posted its biggest daily gain in almost two years after signing Mexico’s biggest cinema chain to its cloud product, while Serko and Napier Port Holdings both rallied as their respective earnings came in ahead of expectations.

And Craigs Investment Partners has continued on the acquisition trail, picking up Christchurch stalwart Hamilton Hindin Greene for an undisclosed sum.