Nearly $2 billion has been erased from the value of the New Zealand stock market as stocks plummeted. The gains from falling stocks exceeded 7 to 1, reducing the market’s value from $172 billion to about $169.5 billion.
Financial market experts have compared the huge decline in the stock market with the beginning of the Covid-19 pandemic and the 2009 global financial crisis.
New Zealand companies are directly exposed to our tariffs, such as Fisher and Paykel Healthcare and Skellerup, and have taken the biggest hit. Investment funds based on U.S. assets and companies that invest or earn from U.S. tourists such as Air New Zealand and Sky City also share their share prices.
Since April 4 (April 4), the US dollar in New Zealand fell to 55.5 cents on April 7, with its lowest level falling to 2025. Jason Wong, senior market strategist at BNZ, may have a worse tariff than the worst. He stressed that China’s retaliatory tariffs were an important factor in the kiwi movement, including temporary gains to the Australian dollar.
“We think that at this level, the New Zealand dollar is cheap and fundamentally undervalued, so to surpass the 55 cent mark, you have to take into account more crisis situations. The head of Nikko Asset Management NZ bond and currency Fergus McDonald said the current market situation has preexisting risks and opportunities. He also suggested that turbulence could create opportunities for adventurers or people with a long-term perspective.
Mark Lister, head of investment strategy at Craigs Investment Partners, advises investors to stay calm and seek appropriate investment advice before making changes.
Trump has expressed tariffs on all U.S. trading partners, including New Zealand, Australia, China, Canada, Mexico, the EU, India and many other countries. Many affected countries are fighting back with retaliatory tariffs.
Koura Kiwisaver founder Rupert Carlyon expects a significant drop in New Zealand investors’ balances to end this weekend. He advised investors to maintain a medium-term view. Carlyon advises Kiwisaver members to avoid checking their balances and reacting to the news.
He acknowledged Trump’s unpredictability, which would affect the uncertainty of investment decisions.
