NZ stocks pull out of nosedive

The New Zealand share market opened lower following Monday's sharp sell-off, but recovered in late morning trading to be up around 3 per cent shortly after 1pm.

The S&P/NZX50 Index was up 3.14 per cent at 8766 with the likes of The Warehouse (up 42 per cent), Sky TV (up 26 per cent) and Ryman Healthcare (up 21 per cent) leading the gainers.

Today's gain followed a 7 per cent fall yesterday after Prime Minister Jacinda Ardern announced that the country would introduce strict isolation measures after evidence emerged of community transmission of Covid-19.

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The volatility on the NZX follows another down day on Wall Street, with both the benchmark S&P500 and the Dow Jones Industrial Average falling by about three per cent each, despite the promise of government and corporate bond buying from the Federal Reserve to push down US borrowing costs.

US markets expect to see more from the US Government in terms of fiscal stimulus.

"US market weakness overnight was not as bad as some had expected," Shane Solly, portfolio manager at Harbour Asset Management said.

"Yesterday the New Zealand market felt like investors were building liquidity before the shutdown and to allow for changing funding requirements," Solly said.

One of the market's key stocks - Ryman Healthcare - rallied by 47 cents or 7 per cent, to $7.11, despite earlier withdrawing its previously announced earnings guidance and building rate.

Ryman said it retirement villages and aged care centres would continue to operate as an essential service for older people.