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New Zealand stocks hit new record high, expected to rise further

New Zealand stocks hit new record high, expected to rise further

New Zealand stocks hit a fresh all-time high in thin post-holiday trading Wednesday, and the market is poised to rise later in the week as investors square up positions ahead of the year-end break.
The benchmark NZX-50 index rose 13 points, or 0.3 percent, to 4,032.07, eclipsing an intraday high of 4,030.99 touched late last week.
Volumes were slim, however, and David Price, a senior broker with Forsyth Barr, said many stock movements were exaggerated by the lack of liquidity with most institutional investors sitting out the holiday-shortened week.
Volatile stocks included Ryman Healthcare, up 3 percent to NZ$10.60 on volume of just 11,200 shares, and Nuplex, up 1.4 percent to NZ$7.45 on around 9,000 shares traded.
"Some stocks have made quite extreme moves. (Institutions) are running on skeleton staff and not wanting to do too much," Price said.
Price expects the market to pick up Friday as institutions square up their books ahead of the end of the fiscal year for many players.
On the downside, exporters remained under pressure Wednesday as the New Zealand dollar tested fresh 12-month highs above US$0.7000.
Fisher & Paykel Healthcare fell 0.7 percent to NZ$4.22, while Fisher & Paykel Appliances fell 2.5 percent to NZ$3.85.
Both stocks generate much of their revenue in U.S. dollars and the higher Kiwi is expected to dent fiscal year earnings. There is little relief in sight, with traders predicting the Kiwi will push toward US$0.7100 by the end of the week.


Updated : 2021-05-16 05:42 GMT+08:00