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Why the New Zealand sharemarket is heading south
19 Feb, 2021 04:00 PM
6 minutes to read
The New Zealand sharemarket is down 7 per cent this year. Photo Greg Bowker
After a stellar performance in 2020, the New Zealand sharemarket has underperformed other markets so far this year by quite some margin. The local market s S&P/NZX 50 index finished the year at 13,092 – up 14 per cent on the substantial lift in the previous year.
But since early January the index has dropped by 7 per cent.
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Australia s ASX200 has done better, firming 3.4 per cent.
Softness in the local market can in large part can be put down to bond yields, which are gaining as investors start to factor in inflationary pressure further down the track.
Mary Holm: Share prices soar until they don t
5 Feb, 2021 04:00 PM
11 minutes to read
The markets could continue to climb for a while yet, but the growth never goes on forever. Photo / 123RF
OPINION:
Q: In your last column you said that since the Covid downturn, share prices have grown strongly. And just as with New Zealand property nobody knows what will happen next, but further huge long-term growth feels unlikely. What makes you say unlikely ? I see no current-world reason at all that the stockmarket wouldn t continue its climb.
I read somewhere that since 1950, stockmarkets closed at an all-time high on one in 15 days. Just because we ve been through a recent bull run doesn t mean it won t continue for a long time yet.
The coronavirus pandemic has had political, economic and social consequences. Credit: PA/AP
Words by ITV News Multimedia Producer Wedaeli Chibelushi
One year ago, health authorities in China reported that a 61-year-old man in Wuhan had died from a “new type of coronavirus”.
The Wuhan Municipal Health Commission said the virus had infected 41 of their residents and left seven of them in a critical state. No one could pinpoint exactly what the virus was - but many feared an outbreak similar to that of SARS in 2008.
The mystery virus turned out to be much worse.
Covid-19, as we now know it, has killed more than 1,884,000 people worldwide and infected more than 86,400,000, according to the World Health Organization (WHO).
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