New Zealand shares fell as global uncertainty over China's financial markets and Greece's debt crisis spooked investors. Kathmandu Holdings, Warehouse Group and Restaurant Brands declined in a broad-based selloff.
The S&P/NZX 50 Index fell 30.26 points, or 0.5 per cent, to 5737.44, recovering from a 1.4 per cent intraday drop. Within the index, 35 stocks fell, nine rose and six were unchanged. Turnover was $206 million.
The benchmark index climbed out of its morning slump after Asian markets opened better than expected. International markets have been spooked by a sharp correction on China's stock exchange, with the Shanghai SE Composite Index slumping a third over the past month, triggering selloffs across the region as traders fret over signs of weakness in the world's second-largest economy. The turnaround in Chinese equity markets ended a more than 150 per cent surge in the past 12 months.
"This morning volumes were very light and it actually felt as though there was a little panic selling from retail investors in the market - it was get-me-out-type selling as opposed to anything else," Matthew Goodson, managing director of Salt Funds Management said. "All markets rebounded early-mid afternoon when Asian markets opened a little better. The Shanghai market is still up 70 to 80 per cent over the past 12 months."
