NZX 50 tumbles as Russia bans PM Jacinda Ardern from entering

Highlights

• The benchmark index S&P/NZX50 traded in red today and was mainly weighed down by materials and IT stocks
• The Dow Jones Industrial Average witnessed gains as the US Congress voted for banning Russia’s trade status
• The world's top crypto witnesses a decline, while altcoins like Solana, XRP and Cardano shine over the last 24 hours

The downward trend of the New Zealand share market continued today as the fear of rising interest rates in the United States is looming large.

On Friday, 8 April 2022, the benchmark index S&P/NZX50 last traded at 12,066.270 basis points, down by 0.08%. The S&P/NZX All Materials and the S&P/NZX All Information Technology ended the trading session lower by 4.91% and 1.49%, respectively. Another possible reason for the not-so-positive performance by the benchmark index can be attributed to the blacklisting of the NZ PM Jacinda Ardern along with more than 100 other NZ politicians and officials from entering Russia.

The said move by the Russian foreign ministry came as a retaliation measure against the Kiwi Government’s unprecedented sanctions against Russia.

NZX gainers and decliners

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Among stocks with the largest market capitalisation, Fisher & Paykel Healthcare Corporation Limited (NZX:FPH), Auckland International Airport Limited (NZX:AIA) and Mercury NZ Limited (NZX:MCY) witnessed a decline today.

Coming to the top gainers, My Food Bag Group Limited and Chatham Rock Phosphate Limited surged by 14.61% and 6.95%, respectively, while EROAD Limited (NZX:ERD) and Steel & Tube Holdings Limited, slumped by 14.89% and 6.41%, respectively.

Global markets amid sanctions on Russia

Among the major global indices, the Dow Jones Industrial Average and the S&P 500 INDEX ended in green with gains of 0.25% and 0.43%, respectively. It must be noted that the US Congress has voted in favour of annulling Russia’s trade status and has blocked oil and gas imports along with debarring all new investments in the belligerent country.

Gold futures and energy crisis

At the time of writing, gold futures are down by 0.42% at US$1929.60 an oz, and the yellow metal is being supported by rapid inflation, uncertainty over Ukraine and frequent outbreaks of COVID-19 across the world.

Further, if going by the current trends, the ongoing energy crisis will soon worsen as the EU plans to ban Russian coal and the United States grapples with meeting its LNG commitments.

The NZX/USD pair was trading down by 0.40% at 0.6862, at the time of writing.

Global crypto space

The global cryptocurrency market cap has risen by 0.30% over the last 24 hours and stood at US$2.01 trillion. While Bitcoin saw a decrease in its prices, altcoins like Solana, XRP, Cardano, Polkadot, Avalanche, etc., recorded gains over the previous day. Even meme currencies like Dogecoin and Shiba Inu witnessed a rise in their prices.