Foreign Money exiting NZX ??

[da player]

Could this be the start of a lot of foreign Bling exiting the NZX, now NZD on a high maybe some see that it is a prime chance to move $$ to relatively undervalued exchanges with much weaker currencies- looking for the double whammy of making gain on both stocks and the effect of foreign exchange???

thoughts everyone[?]

[skinny]

Good question. I wondered about this too so couple of weeks back had a look at the flows and stocks of equity investment in NZ by foreign entities that Statistics NZ collates as part of its net international investment positions data. (You can download this data for free from the Statistics NZ website). Basically the stock of foreign equity holdings in NZ has gone up around 25% since 2002. This is quite a bit less than the increase in the broad NZX index, all else equal suggesting foreign money entering NZ has not been the big driver of the gains in the market. Whether any exit of it will depress the NZX is another story -- my guess is that as long as domestic punters are confident about the returns from investing domestically the market will stay solid (with the notable exception of TEL perhaps).

[lucky]

Yes the NZD is on a high, but has its rise stopped yet ?, I thought 80c against the $US may yet be seen, but who can pick the top.

[Winston001]

In June '04 JB Were predicted $0.80 cross rate with US$ by end 2005. We laughed. [B)]

[da player]

what stock were jb were recommneding ?? haha