NZ shares slip despite global rebound

The New Zealand sharemarket lost nearly 2 per cent yesterday, while markets around the world rebounded on hopes of progress in the coronavirus pandemic.

The NZX 50 index was down

1.72 per cent, or 171.36 points, to

9763.82 by 5pm yesterday after inching up 0.65 per cent at the end of last week.

Markets in Tokyo, Seoul and Sydney gained more than 2 per cent in early trading yesterday and Hong Kong was up nearly 1 per cent, while New York futures were about 3 per cent higher.

The gains followed losses on Wall Street after the United States said employers cut 701,000 more jobs than they added last month, the first drop in nearly a decade.

Reports showed the number of people dying appeared to be slowing in New York City, Spain and Italy. The news was cautiously welcomed by leaders, who also noted that any gains could easily be reversed if people did not adhere to strict lockdowns.

Japan’s prime minister, Shinzo Abe, was expected to announce a state of emergency today, while

Thailand’s government was reported to be considering expanding its 10pm to 6am curfew.

Fisher & Paykel Healthcare shares were down 3.7 per cent at $29.40, despite surging worldwide demand for respiratory devices.

Among other blue-chip stocks, Air New Zealand shares were 2.3 per cent lower at 84 cents, Spark was up 0.9 per cent at $4.28, Contact Energy was down 3.8 per cent at $5.71, and Ryman Healthcare was 3 per cent lower at $10.67.

Shares in Sky Television were unchanged at 27c.

Shares in Auckland Airport were in a trading halt after the company announced it was raising up to $1.2 billion in equity to shore up its balance sheet while border controls and huge drops in passenger numbers continue.

AIA requested the trading halt, which would remain in place either until the placement was completed or until the sharemarket opened tomorrow, whichever was earlier.

The NZX’s regulatory body has suspended the quotation of shares of Aorere Resources, a company that invests in minerals projects. This followed Aorere’s announcement of a conditional deal to buy All Industrial Network Ltd, a company that invests in mining, engineering and construction.

As a ‘‘reverse listing’’, the move triggers a suspension of quotation which ensures that Aorere’s shares can only be traded where the market is fully informed about a potential acquisition. – with AP

The NZX 50 index was down 1.72 per cent to 9763.82 by 5pm yesterday.