Overseas<\/p>\n
Across the Tasman, the S&P\/ASX had fallen 3.2% to 8567.4 points at 5.30pm NZ time. The Japanese Nikkei 225 Index was down 6.85% to 51,812.4 points and Hong Kong Hang Seng had declined 2.55% to 25,101.04.<\/p>\n
This followed a weekend fall on Wall Street. The Dow Jones Industrial Average was down 0.95% to 47,501.55 points; S&P 500 declined 1.33% to 6740.02; and Nasdaq Composite fell 1.59% to 22,387.68.<\/p>\n
Nowhere to hide<\/p>\n
Matt Goodson, managing director of Salt Funds Management, said on a day like this, there was nowhere for the investor to hide.<\/p>\n
\u201cEquities are down, gold is down (1.2% to US$5099) and bond yields are up (NZ 10 Year Government Bond yield increased nearly 19 points to 4.687%),\u201d he said.<\/p>\n
\u201cThere was no sense of panic and markets are very alert to the fact that things can change quickly. President Donald Trump is material to this.\u201d<\/p>\n
Goodson said the surge in oil price created a genuine macro-economic threat of weaker growth and higher inflation. \u201cI expect the Reserve Bank will look through this in the short-term but if it becomes longer-lasting then it will have to reassess.<\/p>\n
\u201cIt\u2019s very frustrating. Just when the New Zealand economy was beginning to burst back to life, this comes along.<\/p>\n
\u201cIf the Iran war drags on, then we have an interesting developing story on our fuel supply, to put it mildly.\u201d<\/p>\n
49 days supply<\/p>\n
Goodson said New Zealand has 49 days of petrol, 27 in the country and 22 days shipped on the water from Singapore; diesel 54 days (24 and 29 days), and jet fuel 50 days (28 and 22).<\/p>\n
\u201cThe futures market sees the high oil price lasting for several months to May\/June, and in December falling to US$75.40 a barrel,\u201d Goodson said.<\/p>\n
In the sea of red on the local market, Fisher & Paykel Healthcare fell $1.90 or 4.76% to $38; Infratil was down 24c or 2.21% to $10.60; Auckland International Airport declined 38c or 4.35% to $8.36; and a2 Milk decreased 42c or 3.55% to $11.42.<\/p>\n
In the energy sector, Meridian was down 16c or 2.84% to $5.47; Contact shed 23c or 2.45% to $9.1; Mercury decreased 14c or 2.17% to $6.30; and Genesis shed 7c or 3.15% to $2.15.<\/p>\n
Air New Zealand fell 4c or 7.8% to 47c; Tourism Holdings declined 14c or 5.51% to $2.40; SkyCity was down 2.5c or 3.03% to 80c; and Property for Industry decreased 8c or 3.35% to $2.31.<\/p>\n
Fletcher Building declined 10c or 2.9% to $3.28; Mainfreight eased $1.15 or 1.81% to $62.35; Freightways was down 36c or 2.58% to $13.60; Port of Tauranga declined 31c or 3.8% to $7.85; Napier Port shed 18c or 4.59% to $3.50; and Skellerup was down 17c or 3.02% to $5.45.<\/p>\n
In the technology sector, Gentrack fell 31c or 3.8% to $7.84, and Vista was down 3.5c or 1.86% to $1.845.<\/p>\n
Amongst the few gainers, CDL Investments increased 4c or 5.13% to 82c; PGG Wrightson was up 5c or 2.35% to $2.18; and Rua Gold rose 13c or 7.56% to $1.92.<\/p>\n
Fonterra Co-operative, up 2c to $6.26, said all the regulatory approvals for selling Mainland Group to French dairy giant Lactalis for $4.22 billion have been received and the agreement is unconditional.<\/p>\n