More investors are expected to pile into shares this year
as returns from fixed-interest investments remain low.
Investors who kept faith with the New Zealand sharemarket
last year were richly rewarded, with only two NZX-50
companies failing to make a positive return during the year.
The top three performers - Diligent, Xero and Pumpkin Patch -
provided their returns of 183.4%, 175.4% and 107.8%
respectively on share price growth alone, as none of the
three paid a dividend during the calendar year.
Craigs Investment Partners broker Greg Easton said there were
good returns for investors.
''Fortune favoured the brave. There were some good returns
for those who were looking for a bit extra.
''New ideas started to find traction with investors.''
There was a push for companies not on the NZX-50, such as
Dunedin's Pacific Edge (up 179%), A2 Corp (up 125%) and Scott
Technology (up 72%.
In the case of Scott Technology, the rise in returns came
from the fruition of a long-held strategy. Pacific Edge and
A2 were rewarded as investors started to recognise that years
of hard work on research and development were starting to pay
off, he said.
Burger Fuel was an ''interesting company''. It had started to
make money and Milford had recently bought into it. When
companies like Milford took a stake, the shares usually
received a ''bit of a nudge'', Mr Easton said.
During the last half of 2012, there had been a noticeable
increase in the number of investors entering the sharemarket
looking for yields.
''Also, speculators started turning up again. We haven't seen
them for three or more years but they have been very active
''It was a good second half. In fact, it all happened in the
second half. The market had done nothing until June.''
Asked for a prediction for this year, Mr Easton said the
world was trying to ignore the US, as much as it could.
''We have been through the process before with the debt
ceiling talks. Eventually, they will come to some agreement.
''US markets have been appalling in the last two weeks but I
have just looked at Shanghai and they have had one of the
best months for ages - up 10% last month.''
Europe was starting to outperform as investors, like those in
New Zealand, started to look for personal income gain through
investments, Mr Easton said.
The only two negative returns on the NZX-50 last year were
provided by Chorus (down 6.7%) and Cavalier Carpets (down