23 Oct 2015

NZ sharemarket hits record high

3:00 pm on 23 October 2015

The local sharemarket has hit a record high today with demand for high-yielding, and undervalued stocks boosting the benchmark NZX 50.

The index rose 0.7 percent to a record high of 5966.82, just above the previous high of 3 August, before settling back slightly.

The New Zealand market fell about 7 percent from its previous peak as exchanges around the world slid because of a slump in China's sharemarket and fears of a sharp slowdown in the world's second biggest economy.

However, investors have returned to buy up risky assets, such as stocks, with Chinese growth fears settling, and central banks around the world keeping interest rates low or talking of further cuts.

New Zealand investors have resumed buying companies paying high dividends such as utilities, and stocks that had been sold off and now appear cheap.