Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Silver Linings For NZ Stockmarket In Times Of Despair

The eerie silence greeting the streets carried ominous signs of distress when New Zealand joined the bandwagon of countries observing lockdown. Girding its loins against Covid-19, the nation prepared for self-isolation. Since the infection rate skyrocketed to 205 last Wednesday, Prime Minister Jacinda Ardern promptly imposed a national lockdown of four weeks.

The Latest Stock Market Rally with some Sinusoidal Waves

While the hustling business zones in the country looked deserted, the stock market reverberated positive vibes as the stock indices on the third consecutive day continued the rally (as at 26 March 2020). S&P/NZX 50 Index rose by over 368 points showing the intraday growth of 3.97%. The Australian Stock Exchange (ASX) also opened on a positive note, witnessing a surge of 2.30% in S&P/ASX 200 on 26 March 2020. While some sinusoidal waves again seeped in on 27 March 2020 with indices going slightly down.

Source: NZX

Growth trends in NZ market amidst such a hazy situation seems to suggest that the investors are not ditching their optimism entirely. While the stocks bumped against the market movement in the past few weeks amid coronavirus outbreak, early signs of the bullish trends continued to cascade gleaming hopes for the market. Few investors with high-risk appetite have already started cherry-picking the stocks, refuting the event-driven turmoil led by the pandemic.

Both mid-caps and small caps sent positive signals across the stock exchange on 26 March 2020. The S&P/NZX MidCap Index rose by 3.97% while the S&P/NZX SmallCap Index inched up by 3.59% on Thursday. However, the trend is to be monitored given the slight fall noted on 27 March 2020.

The Silver Lining in Times of Despair

The degree of resilience seems to majorly depend upon the duration of the epidemic, for which the necessary measures are undertaken worldwide. The New Zealand Government’s stimulus package of $12.1 billion seems to rekindle investor’s hope while the reserve bank through its rate cut measures strives to bolster the wavering economy. Although some have left the boat, some investors are eyeing to avail massive price bargains in the share market - taking cues from the famous quote by Warren Buffet -

“Widespread fear is your friend as an investor because it serves up bargain purchases.”

Many Sectors are Defying Covid-19 Trend

Some of the popular sectors in New Zealand seemed spellbound by the positive market movement with the stocks witnessing price appreciation (although the recovery frame is yet to be ascertained well – and one must watch this space). The Information technology and Communication Services sectors were at the forefront of the latest rally showcasing the index rise of 6.80% and 6.59%, respectively, on Thursday. The other sectors such as real estate, industrials and utilities also witnessed surge in their respective indices by over 4.5% on 26 March 2020.

Few sectors seem to be standing relatively cushioned against the epidemic due to their intrinsic nature. Utility sector amalgamated with the contingency supply planning is invested in providing the basic amenities that are unlikely to see a substantial drop in demand. Likewise, as the people are confined to their places, the telecommunication services remain as their prominent source of contact from the outside world.

As the impending doom of uncertainty hovers over the market, another interesting space is taken up by the dividend stocks that might emerge as the holy grail of the risk-averse investors. Meridian Energy Limited (NZX: MEL), Mercury NZ Limited (NZX: MCY) and Telstra Corporation Limited (NZX: TLS) demonstrate fair dividend yields (above 5%). The regular stream of dividend income coupled with the lucrative growth prospects amidst the ongoing stock market ride seems to be an investor’s ultimate guide to fruitful returns.


Uncertainty clouds the international markets as the world keenly awaits the halt of virus spread. Although no one can predict about the ultimate moment when the world would be liberated from the pandemic, a few wise decisions and long-term vision may help some to build their profit reaping investment portfolio

© Scoop Media

Business Headlines | Sci-Tech Headlines


Stats NZ: Largest Drop In Terms Of Trade In A Decade As Dairy Export Prices Sour

Lower export prices for dairy, meat, and logs in the September 2020 quarter led to the biggest drop in terms of trade since June 2009, Stats NZ said today. Export prices fell in the September 2020 quarter, down 8.3 percent from its highest ever ... More>>


Stats NZ: Election Boosts October Job Numbers

Job numbers were boosted by general election staff in October 2020, along with rises in the manufacturing, retail, and hospitality industries, Stats NZ said today. Filled jobs rose by 27,667 to 2.2 million in October 2020 compared with September, after ... More>>

Government: New Year Border Exception For Seasonal Workers In The Horticulture And Wine Industries

2000 additional RSE workers to enter New Zealand early next year employers must pay these workers at least $22.10 an hour employers will cover costs of managed isolation for the RSE workers RSE workers will be paid the equivalent of 30 hours work a week ... More>>


Media: Discovery, Inc. Completes Acquisition Of New Zealand’s Mediaworks TV Ltd

Auckland, New Zealand, December 1, 2020 - Discovery, Inc. (“Discovery”), the global leader in real-life entertainment, has completed its acquisition of New Zealand’s leading independent free-to-air commercial broadcaster, MediaWorks TV Ltd, now operating ... More>>

Department Of Conservation: Big Year Underway At Albatross Colony

Familiar faces are returning for the new season of Royal Cam, with a big breeding year underway for the toroa/northern royal albatross colony on Otago’s windswept Pukekura/Taiaroa Head. More than 120 albatrosses, a taonga species, have returned ... More>>

Real Estate: ASB Survey Reveals Majority Of Kiwis Expect House Prices To Keep Climbing


House price expectations are soaring as New Zealand’s housing market shifts up a gear. But stretched affordability is putting a dent in perceptions of whether it’s a good time to buy. While Kiwis reveal they do expect interest rates to fall further. ... More>>

Stats NZ: Births And Deaths: Year Ended September 2020

Births and deaths releases provide statistics on the number of births and deaths registered in New Zealand, and selected fertility and mortality rates. Key facts For the year ended September 2020: 57,753 live births and 32,670 deaths ... More>>