Lower interest rates have typically supported the local market due to the number of companies that pay reliable dividends, with the electricity generator-retailers some of the biggest beneficiaries last year.
Meridian Energy, the country's biggest generator, today reported record first-half earnings on the back of record generation from its South Island dams. However, the stock fell 5.6 per cent to $5.09 with 1.5 million shares changing hands.
McIntyre said the result was in line with expectations, but that wasn't enough insulate it from the uncertain environment.
Adding to the uncertainty is the future of Meridian's biggest customer, the Tiwai Point smelter. Its owner, Rio Tinto, is mulling whether to close the unprofitable smelter if it can't achieve cheaper energy prices.
Among other power companies, Trustpower fell 4 per cent to $6.66, Mercury NZ was down 4.5 per cent at $5.12, Contact Energy decreased 2.5 per cent to $7.02, and Genesis Energy was down 1.1 per cent at $3.13.
Travel and transport stocks remained under pressure over the covid-19 fears. Port of Tauranga declined 5.5 per cent to $6.52, Tourism Holdings fell 3.8 per cent to $2.55, Air New Zealand was down 2.8 per cent at $2.40, and Auckland International Airport decreased 1.5 per cent to $8.12.
Growth stocks have also been under pressure.
Sky Network Television, which is overhauling its satellite business to compete with streaming rivals, led the market lower. The stock slid 6.7 per cent to 56 cents, a record low, with some 1.5 million shares changing hands.
Vista Group International, which reports tomorrow, fell 4.1 per cent to $3.02 and Pushpay Holdings was down 2.9 per cent at $4.03.
Metlifecare was unchanged at $6.90. It reported a 5 per cent decline in underlying earnings as its development margins came under pressure from rising construction costs. A takeover bid at $7 helped support the stock in today's sell-off. McIntyre noted that the company's net tangible asset value was in line with the bid, making it unlikely investors would get a sweetener. It was the most traded stock on a volume of 4.2 million shares.
Summerset Group, which reported a similar contraction in development margins yesterday, fell 0.8 per cent to $8.25.
Scales Corp posted the day's biggest gain, up 2.3 per cent at $4.37. The fruit exporter reported a 2 per cent increase in underlying annual profit and McIntyre said investors were optimistic about its patient approach to merger and acquisitions and its $105m war chest.
Of other stocks to gain, Fletcher Building rose 0.9 per cent to $5.40, Vector increased 0.6 per cent to $3.25 and Fisher & Paykel Healthcare edged up 0.1 per cent to $25.50.
Arvida Group fell 5.5 per cent, or 10 cents, to $1.73, after shedding rights to a 1.45 cents per share dividend.
Outside the benchmark index, PGG Wrightson was unchanged at $2.27 after reporting a 33 per cent increase in operating earnings on the strength of its livestock and horticultural supplies divisions.
