The largest exchange-traded fund to track the New Zealand equity market fell on Thursday, following news that its Labour Party has secured a coalition to lead the government after no single party managed to win enough votes for an outright majority in last month’s election. The iShares MSCI New Zealand Capped ETF lost 2.2%, dropping in its biggest one-day percentage decline since June. Trading on the fund was heavy, with more than 33,000 shares changing hands, above the 30-day average of about 24,400, according to FactSet data. The new coalition, led by 37 year-old Jacinda Ardern, is seen as raising questions about the outlook for the New Zealand economy. Separately, the New Zealand dollar sank to a five-month low. Despite the drop on the day, the fund remains up by about 17% for 2017. The S&P 500 is up 14.3% while the Dow Jones Industrial Average has gained 17.1%.
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