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NZ Stock Less Affected By Global Market Than Australia, Advisor Says
A financial advisor believes the New Zealand stock exchange will be less affected by the latest global market trends than Australia.
The Australian stock exchange was two percent down when it closed trading yesterday evening, with some of the worst hit industries being mining and tech companies.
It came after some fears globally about investment returns on artificial intelligence.
Radical Investment financial advisor Darcy Ungaro said New Zealand's main exports were quite different to those across the ditch.
"Specifically, commodities like iron and coal and the financial and banking industry. Obviously, there's more tech companies in the ASX then the NZX."
Ungaro believed that Australia was likely more connected to the global economy through its products and financial markets.
"They are far more sensitive to changes like Donald Trump's recent nomination for Fed Chair."
He said the New Zealand stock exchange was fairly insulated at the moment.
Tech and business commentator Paul Spain said the New Zealand stock market will be less exposed to the global trends driving down stocks in Australia and the US, due to having fewer tech companies that are listed on the local stock exchange.
However, he said New Zealanders with investments in NZ companies listed overseas, such as Xero and Rocketlab, or those with investments in international tech stocks, will still feel the hit.
Spain said the global trends may trigger people to sell off or exit from certain KiwiSaver plans; however, he said conventional wisdom would advise to hang in for the long haul.
"Sometimes we see these stocks that will have a drop, people will be fearful and maybe exit a KiwiSaver scheme and may well get burned if those stocks then end up bouncing back," he said.
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