NZ sharemarket rallies on increasing business confidence

The S&P/NZX 50 Index traded strongly in the afternoon and closed at 12,466.69, up 42.87 points or 0.35% following two successive falls.

On another heavy trading day, there were 48.5 million share transactions worth $173.76m.

Sentiment rebounded 35 points to minus 5% in the NZ Institute of Economic Research (NZIER) third quarterly survey of business opinion. In ANZ’s latest survey business confidence rose 10 points to +61 in September and expected own activity increased eight points to +45.

NZIER said businesses are responding favourably to the withdrawal of monetary restriction, but times are still tough here and now. All the survey responses came after the Reserve Bank’s official cash rate cut in late August (by 25 basis points to 5.25%).