Reply To: New Zealand Stocks Fall 12% in 2022 with Chinese Contagion


New Zealand’s Prime Minister Ardern resigned, planning to leave office by February 7. New Zealand will hold a general election in October.

Shares in New Zealand lost 34.77 points or 0.3% to finish at 11885.64 on Thursday, retreating from over 9-month highs touched in the prior session, after Prime Minister Jacinda Ardern announced today she is stepping down in a shock resignation ahead of a general election later this year.

The leader mentioned she doesn’t have the energy or inspiration to seek reelection, adding that she would leave the office no later than early February. Ardern named the election date as October, 14th.

Traders were also reluctant to buy riskier assets following a sharp drop in US stocks Wednesday amid weak retail sales and PPI data that raised concerns over the outlook for growth and earnings.

On local data, the annual food inflation in New Zealand hit its highest in 32 years in December.

Communications, consumers, and health technology ended in the red, with bottom movers including A2 Milk Co (-2%), Spark New Zealand (-1.2%), Fisher & Paykel (-1%), Mercury NZ Ltd. (-0.8%), and Contact Energy (-0.6%).