Business / Covid 19

NZX tumbles 1.6% in third day of losses

17:32 pm on 26 February 2020

The local sharemarket has had a third consecutive day of steep losses.

(file photo) Photo: Supplied / NZX

The benchmark top-50 index has closed off its lows after recouping some early losses, but still ended down 185 points or 1.6 percent.

It fell just over 1 percent yesterday after falling 1.8 percent on Monday, its worst day in four months.

Investors have been selling risky assets such as shares because of uncertainty over the impact of the coronavirus on companies and the world economy.

Most local stocks have fallen, with companies exposed to travel and tourism or with direct business ties to China among the hardest hit.

Overseas markets have also taken heavy hits. US markets were battered as much as 3 percent lower overnight and Australia and markets in Asia are also showing hefty falls.

Financial markets are expected to remain volatile until there is some clarity about the virus.