New Zealand-listed tourism stocks took a dive this morning as $2bn was wiped off the NZX following Monday’s biggest one-day fall on Wall Street since 2011.
However, prices recovered much of the initial 2% drop by the end of the day with the country’s top tourism-related listed operators managing to claw back most of the morning’s falls.
Air New Zealand fell more than 3% in the first hour of trading to $2.95 but managed to recover to $3.045 by the end of the day’s trading, down only slightly on Monday’s closing $3.05 price.
Tourism Holdings dropped 3.14% in morning trading to $5.55 but finished the day on $5.66, down from Monday’s close of $5.73.
SkyCity Entertainment Group and Millennium & Copthorne Hotels finished the day down only slightly and Auckland International Airport finished fell 1.2%.
Following yesterday’s Waitangi Day holiday, investors were braced for the NZX to play catch-up with steep losses seen in the global markets.
However, it closed down only 0.6%, or 47 points lower, coming through the day relatively unscathed as the initial market drop of around 2% was clawed back by buyers looking for bargains.
Yesterday, while the New Zealand market was closed, hundreds of billions of dollars was wiped from the value of stocks around the world.
Australia’s stock market fell 3.2% after Wall Street took its steepest tumble in nearly seven years on Monday falling 4.6%.
Asian markets were also caught up in the sharp falls, with Japan’s Nikkei dropping 4.73% and Hong Kong’s Hang Seng index closing down 5.11% overnight.
But the S&P 500 index in the US grew 1.75% and the Nasdaq closed up 2.1% on Tuesday just as the NZX was opening, helping to soften falls here.