NZX50 snaps 3-day gain as Middle East tension keeps investors on edge

New Zealand’s S&P/NZX 50 index snapped a three-day run of gains in a broadly weaker session across Asia, with heavyweights Fisher & Paykel Healthcare and Meridian Energy the biggest drags on the bourse as investors continue to fret about the tensions in the Middle East.

The kiwi dollar dipped after Moody’s Ratings tagged a ‘negative’ outlook on New Zealand’s Aaa sovereign credit rating, while finance minister Nicola Willis warned the energy shock forced a rework of the upcoming budget, with Treasury officials warning of slower growth and a faster pace of inflation as they rework their forecasts for the fiscal projections.

Genesis Energy was among gainers as it joined other power companies in upgrading its earnings guidance on the flush hydro dams, while Heartland Group Holdings gained after affirming its outlook.

And NZX chief executive Mark Peterson delivered his final address to shareholders at the stock market operator’s annual meeting, urging policymakers to be cognisant about the regulatory impost on the cost of capital in a globally competitive environment.