Reporting season another boost for equities

Overall, earnings grew 7.2%, beating forecasts.

Investment adviser Grant Davies said there were few disappointing results.

“The outlook for New Zealand equities is still positive, subject to outside market events, of course,” he said.

“With interest rates at all-time lows, the dividend yields on offer on the NZX are still relatively attractive. Long-term interest rates suggest any material increase in interest rates unlikely for the foreseeable future, so investors hanging out for the days of yore, when term deposits offered 6%, 7% or 8% are likely to be waiting some time. This will provide support for New Zealand equities as investors chase yield.”