NZX Continues in Uncertainty
The New Zealand Stock Exchange (NZX) is still on uncertain grounds following its staggering drop on Tuesday the 30th of September.
At the time of writing, the NZX 50 index was at 3170 points, up 129 points from its lowest point this week, shortly after market opening on Tuesday. The weekly high was reached on the Thursday, at just below 3230 points.
The current bout of volatility is a product of the Wall St financial crisis. The weekly low, which is by some now being called “Black Tuesday”, was caused by the US Congress not passing the proposed $700 billion bailout plan. Analysts now say that this effect was purely reactionary and the recent optimism was more in line with the financial risk that New Zealand faces from the events on Wall Street. This sentiment is also aided by the passing of a revised bailout plan through the US Senate.
The extent of the Wall Street crisis can be best judged on various American stocks. Various big name stocks have faced intense price falls, including General Electric which had a 10% fall in price from discount share sales.