NZ and Aussie shares hit yet again

It has been another day of carnage on the New Zealand and Australian sharemarkets as investors got their first chance to react to the requirement for travellers to both countries to self-isolate.

The NZX top-50 closed down 3.6 per cent despite Air New Zealand suspending trading in its shares all day as it attempted to assess the impact of the Government’s travel restrictions.

Auckland Airport plunged almost 21 per cent, knocking more than $1 billion off its market value alone.

Sky Television was also hard hit, down 22 per cent, as investors reacted to the suspension of Super Rugby and disruption to other sports events important to Sky Sports. Spokeswoman Chris Major said the consequences of postponed and cancelled events were falling on everyone in the sports industry. There was still sport being played and shown, including ‘‘strong domestic competitions’’ such as ANZ Premiership

netball, Major said.

Sky was working with partners and other rights-holders to develop ‘‘the best possible package to deliver to customers during this extraordinary period of time’’, with more details likely to be provided next week, she said.

Health technology company Fisher & Paykel Healthcare was one of a small number of stocks to buck the trend as demand for its products increased as a result of the coronavirus outbreak.

Its shares closed up 9 per cent at $25.20 but are still off their record highs achieved last week.

Investors wiped nearly a third off Tourism Holding’s share price.

Jeremy Simpson of Kiwi broker Hamilton Hindin Green said Tourism Holdings’ strategy in the United States was already unravelling before the virus, and it had taken on a lot of debt.

Blue chip retirement village stocks were also feeling some pain. Ryman fell 7 per cent to $10.85 and Summerset closed down 4 per cent to $5.70.

Other companies also suspended their guidance, with travel agency software firm Serko and hospitality operator Good Spirits Hospitality both announcing a reassessment of their outlooks. Australian shares were faring worse, with the ASX200 index down 7.6 per cent by the time the New Zealand market closed.

Shares in Australia’s top four banks were each down by 8 to 10 per cent.

Xero shares were down just over 13 per cent and trading at less than A$70 for the first time since November.

The NZX50 is now at its lowest level since March last year and the ASX200 is at its lowest point since June 2016, wiping out more than three years’ of investor profits.