NZX50 continues march
The NZX50 broke into new ground yesterday, reaching a record closing point of 4802.56, up 0.92 per cent, or 43.97 points, pushed by the potential sale of Metlifecare.
The index has risen more than 20 per cent over the past year.
Hamilton Hindin Greene director Grant Williamson said the NZX50 had a very strong day on Monday and followed overseas markets up.
"Also we have seen there's no more selling to take up the Meridian shares, so without that factor the buyers are back in control of the market and pushing some stocks very high," said Williamson.
However, current market darling Xero, which has enjoyed a stellar rise since successfully raising $180 million last week, fell by about 60c, down to $26.40. "But overall that's just a correction for it rallying so strong every day last week.
"It was a huge week for the stock, up around 40 per cent in one week. So some investors will sell and take some profits off that very good week."
Williamson said stocks in the aged care sector performed particularly well.
"Stocks like Metlifecare rallied very well, up to $3.60, up 26c, on news that a major shareholder will sell up and that rubbed off on fellow retirement company Ryman Health, which is trading near its record high, at $7.22c, up 22c [on Monday]," he said.
After rising for five days in a row, the Australian sharemarket hit a fresh five-year high Monday as the big banks and miners keep climbing.
Only last week trading volumes were unseasonably thin and investor sentiment cautious amid fears a fiscal policy fiasco in the United States could cause another global financial crisis more catastrophic than that of 2008.
This week, with risks in the US delayed, if not entirely resolved, and the global growth outlook improving, investors across the Tasman are more positive. The benchmark S&P/ASX 200 Index added 30.3 points, or 0.6 per cent, to 5351.8 - its highest level since June 12, 2008.
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