Reserve Bank measures limit virus-driven stock slide

The S&P/NZX 50 Index declined 153.41 points, or 1.3 percent, to 11,491.91. Within the index, 42 stocks fell, six rose, and two were unchanged. Turnover was $218.8 million.

A hasty late-night press conference, in which the Prime Minster Jacinda Arden announced four unexplained cases of covid-19 and placed Auckland into at least a three-day lockdown, primed every stock in the index to fall at the open.

The market was down more than 2.5 percent in early trading - its biggest fall in two months - but rallied as investors processed the impacts of the lockdown and the Reserve Bank announced further stimulus which will support financial markets, said Shane Solly, a portfolio manager at Harbour Asset Management.

“There was a bit of an overreaction to start with,” he said. “But subsequently we’ve had comments from the Reserve Bank highlighting we’ve lots of ammunition to provide support to the economy.”