Oil crash spooks investors; NZ shares fall
The S&P/NZX 50 Index dropped 226.80 points, or 2.1 percent, to 109,535.87. Within the index, 37 stocks fell, nine rose, and four were unchanged. Turnover was $186 million.
Equity markets around the world fell after rapid selling of US May crude oil contracts pushed spot prices into negative territory for the first time. With most of the world on lockdown, demand for crude has fallen away. Storage facilities are filling rapidly and the price of stowing barrels of unused oil exceeds the value of the commodity itself.
The price shock weighed on Wall Street and Asian share markets followed suit with Hong Kong’s Hang Seng falling 2.1 percent, Shanghai’s SSE Composite Index dropping 1.3 percent and Australia’s S&P/ASX 200 down 2 percent.
Stuart Williams, head of equities at Nikko Asset Management, said the oil price didn’t weigh directly on NZX-listed companies' share prices, but that the negative headlines gave investors a reason to back off last week’s rally.
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