21 Dec 2009

Stock market proved itself in crisis - NZX boss

6:35 pm on 21 December 2009

NZX chief executive Mark Weldon says the stock market proved itself in the wake of the global financial crisis, providing money to firms as banks tightened their lending.

A number of firms raised money this year to strengthen their balance sheet, including PGG Wrightson, Nuplex, Fisher & Paykel Appliances, Fletcher Building and Sky City Entertainment Group.

Most used the money to reduce bank debt, as the cost of borrowing rose and banks took a tougher approach to financing.

The stock market's value has fallen to $53 billion and remains under-represented in key sectors like agriculture, but Mr Weldon says it did its essential job of providing a platform for firms to raise capital.