NZX down 0.3% as world waits for Iranian response

The benchmark S&P/NZX 50 Index dropped 0.29% to 12,532.65 points with 38 million shares worth $135.7m changing hands.

On his Truth Social media platform, US President Donald Trump said the Sunday air strikes did “monumental damage” to Iran’s Natanz, Fordo and Isfahan nuclear sites.

Peter Sigley, director of institutional sales at Forsyth Barr, said US actions in Iran had created “plenty of uncertainty” for investors, but that markets were waiting for more information. "The inclination is not to do too much until you get a lead from elsewhere," he said. “The retaliation might take a few days to come through, and then the focus would be on the nature of the retaliation, whether it seemed to be something quite meaningful. There are some pretty scary scenarios around.”

The index In NZ equity markets, Sigley said investors were looking forward to Fletcher Buildings’ investor day on Tuesday, stating that the expectation is that the firm will set various benchmarks for itself to fulfil over the coming years.  Fletcher Building stocks fell 1.6% to $3.08 after it and its joint venture partner, Acciona, reached a settlement with the NZ Transport Agency (NZTA) and the Northern Express Group over covid-related delays to the construction of the Puhoi to Warkworth motorway. “This is just another example of the new management working their way through the legacy issues that the company’s been facing,” he said.