Record high for NZSX50 as confidence up

Staff at Craigs Investment Partners brokerage, (front) broker Peter McIntyre, (back, from left)...
Staff at Craigs Investment Partners brokerage, (front) broker Peter McIntyre, (back, from left) James Fox, Robert Garden, Emma Chin and (background) John Carmody watch the NZX50 tick over to a record high. Photo by Christine O'Connor.

The New Zealand stock exchange's top 50 company index touched an all-time high yesterday, closing up at 5970.90.

The NZX50 opened yesterday at 5923.59, then gained ground to hit its new high, 7.85 points higher than the previous high struck in early August of 5963.05.

Craigs Investment Partners broker Peter McIntyre said the dual sentiments of domestic investors, taking on board ''positive incomes themes'' from New Zealand companies and a settled global market all combined to push the NZX50 higher.

''There's talk of more European stimulus by the European Central Bank [ECB]. In New Zealand, it's off the back of positive annual general meeting comments made by chief executives and chairmen,'' Mr McIntyre said.

He said aside from Sky TV, the year-ahead outlooks by management for companies such as Ports of Tauranga, Vector, South Port, Genesis Energy, Auckland International Airport and Air New Zealand, all had positive dividend messages.

''Even those forecasting relatively flat earnings are saying they will maintain dividends ... which goes on to underpin the future share price,'' he said.

Overnight research by Craigs said US stocks were ''in rally mode'' with the main indexes bolstered by relatively strong economic data, and the ECB having said it would ''re-examine'' its 1.1trillion ($NZ1.79trillion) quantitative easing stimulus programme in December.

The ECB's programme has been to purchase 60billion of bonds per month, in order to bring Eurozone inflation up.

Mr McIntyre also noted the most recent GDP (gross domestic product) forecast for China, at 6.9% growth, was ahead of market expectations, and gave the market ''more confidence''.

Add a Comment

Local journalism matters - now more than ever

As the Covid-19 pandemic brings the world into uncharted waters, Otago Daily Times reporters and photographers continue to bring you the stories that matter. For more than 158 years our journalists have provided readers with local news you can trust. This is more important now than ever.

As advertising drops off during the pandemic, support from our readers is crucial. You can help us continue to bring you news you can trust by becoming a supporter.

Become a Supporter