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New Zealand Stocks Can’t Quite Break the $100 Billion Level

  • Local companies’ earnings estimates are being lowered: Harbour
  • Factory and GDP reports in coming days may signal trend
Auckland Residential Property Ahead Of RBNZ Rate Decision

Photographer: Brendon O'Hagan/Bloomberg

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A rally that’s taken New Zealand equities close to commanding $100 billion in market value for the first time is facing one of its biggest tests: the country’s weakening economic outlook.

A stellar 27% surge this year took the New Zealand Exchange 50 Gross Index to a record high on Sept. 6, even as economic indicators stoked concerns about growth. The equity measure slid 2.6% in the following three days as yet another report signaled that the economy is weakening. The gauge rose 0.2% to 10,949.10 as of 8 a.m. in Singapore on Thursday.