The rout of the New Zealand share market has continued, with another torrid session sending it to its lowest level in more than two years.
Photo: RNZ / Angus Dreaver
The benchmark NZX 50 index at one stage was down as much as 330 points, or more than 3 percent, but clawed back some losses to close down 283 points, 2.6 percent to 10,641, the lowest since early May 2020.
The falling stocks outnumbered the gains by nearly 10:1, with hefty losses for a host of heavyweight stocks including Air New Zealand, Mainfreight, Fletcher Building, and Contact Energy.
But local retailers Hallenstein Group, Kathmandu, and Restaurant Brands also suffered, as did a clutch of technology companies.
Jarden Securities broker Kyle Edmonds said there had been a hint of panic.
"It's largely based around recessionary fears and they've been driving further sell offs ahead of the key Federal Reserve meeting."
Investors were being warned to expect more volatility and possible further drops in sharemarkets in the near term.
Devon Funds head of retail Greg Smith said that would continue big drivers of global inflation such as the Ukraine war that have no end in sight.
"This is beyond the control of the central banks, it's very much an unknown."
The local market is down 18.5 percent so far this year.
Weakness on Wall Street has driven global markets after last week's higher than expected inflation report and investor nerves ahead of the US Federal Reserve's latest interest rate decision which is due Thursday morning NZ time.
The Fed is expected to raise its benchmark rate a further 50 basis points (half a percentage point), but there has been growing talk it could be more aggressive with 75 basis points.
