The S&P/NZX 50 Index dropped 2.3 percent, to 6,667.78. Within the index, 44 stocks fell, four remained unchanged and – two rose.
“The next question will be just how far down markets will go overnight, particularly since they incorrectly rallied going into this,” the NZ Herald quoted managing director at Salt Funds Management, Matt Goodson, as saying.
“Individual stock movements have not much information. Futures are down extremely sharply, and the difficulty is our market has been trading at expensive levels.”
A2 Milk fell 7.1 percent to $1.69 and New Zealand Refining Co dropped 5.1. Australia & New Zealand Banking Group fell 4.9 percent, Heartland Bank and Westpac Banking Corp dropped 4.8 and 4.5 percent, respectively.
“The bright side is we are seeing quite a rally in bonds. Credit spreads will move out, that’s why the financial sector’s been hard hit today – although the direct exposures are relatively modest,” added Goodson.
“The fear was always the exit voters would be more motivated than the remain voters, and that seems to be what has happened – where they have voted leave they’ve voted in greater numbers than expected.”