Market Prevails

New Zealand’s stock market, worth a total of around only $48 billion, is one of the world’s best performing this year despite the effects of the Christchurch earthquake, a weak economy and a foreign debt burden on a par with Greece. Managing director at Wellington-based Harbour Asset Management Andrew Bascand said: “The earthquake was a dreadful disaster but what it’s done has been to keep monetary policy easy, at the same time as a massive amount of money is flowing in for the rebuild from the global reinsurance companies.” The currency is now trading close to a 3-year high. A post-quake rebuilding plan due to start over the next six months anticipates spending of $12.5 billion – equal to around 7 per cent of gross domestic product.