Investing in New Zealand Stocks and Shares

The New Zealand Stock Exchange (NZX) market is capitalised at over NZ$70 billion with just over 250 listed companies and a daily volume of trades of about NZ$120 million.

The New Zealand share market is less than 1% of the value of the world stock market. Most Kiwi investors also trade Australian shares, as the Australian market is around 20 times bigger.

There are three primary securities markets within the NZX:

1. The NZSX, or main board. Around 170 of New Zealand's most established companies listed, considered the primary market. The top 10 listed companies tend to pretty much dominate trading, but there are many interesting medium-sized companies listed.
2. The NZDX, or debt market, offering corporate and government bonds and fixed income securities. Around 50 companies listed.
3. The NZAX, or alternative market. Comprises just under 30 small to medium-sized non-standard companies.

Key indices include:

• The NZSX 50 - the top 50 companies listed on the NZSX (by market capitalisation).
• The NZSX 15 - the top 15 companies listed on the NZSX. The index is reviewed every 6 months, and the weighting of any security in the index is capped at 30%.
• The NZSX 50 Portfolio - the same top 50 companies as the NZSX 50, but the weight of any one security is limited to 5% of the index market capitalisation.

There are also a Science and Technology index, an NZX 10 index, Mid Cap and Small Cap indices, and both NZX and NZAX All indices.

You can find our more about the New Zealand stock exchange on their website.

At Broadbase International Ltd we think that the key to direct investment in New Zealand shares (as with investing in any market) is thorough research - and to understand the risks involved and diversify your portfolio accordingly. We utilise the services of a well-regarded New Zealand stockbroker to provide enhanced research and resources and to help our clients diversify their portfolios with direct equities. Please contact us to find out more.

At Broadbase International we specialise in providing expert, impartial financial advice for Brits in New Zealand and Kiwis returning from the UK. Don't hesitate to contact us if you have any questions about New Zealand investments, and remember to ask for a free copy of our comprehensive New Zealand Guide.