The head of the New Zealand stock exchange says the market is in the midst of a bull run as investors return to buy high-yielding stocks.
A bull market occurs when a majority of investors are buying, causing share prices to rise.
Over the past three months, stocks on the NZX have risen 23%, although from recessionary lows.
But as the reporting season gets into full swing and companies report lacklustre results, the bull market is likely to be tested.
NZX chief executive Mark Weldon says it will be better for investors if the market settles into a more predictable phase.
He expects the New Zealand economy to emerge from the recession in an orderly way and be in a strong position by the middle of next year.
