This year is shaping up to be the strongest the New Zealand sharemarket has seen in just under 20 years.
The market’s benchmark index, the S&P/NZX50, is up by 28.3 per cent in the year to date, making it the strongest year since 2003, when it clocked up 25.6 per cent increase.
“It will be the strongest year that we have seen since the index came into being,” Mark Lister, head of private wealth research at Craigs Investment Partners said.
“It’s hard to be disappointed with that,” he said.
The market has rallied largely in sympathy with overseas markets, with Wall Street’s Dow Jones Index hitting new highs last week, and as investors go in search of yield while interest rates remain very low.
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The market’s big shift higher has been driven by companies like Fisher and Paykel Healthcare, which closed on Friday at $22.15 a share – having rallied by 64 per cent over the last 12 months.
Meridian Energy, the country’s biggest power generator, has been knocked off its highs but at Friday’s close of $4.71, the stock was up 41 per cent over the last 12 months.
Similarly A2 Milk, while off its highs, last traded at $15.52 – still a 49 per cent increase over the 12 months.