Positive end for dollar and shares

As a busy year for business and politics draws to a close, the New Zealand dollar and sharemarket have both managed to end 2016 ahead of where they kicked it off.

The kiwi dollar is on track for a gain of 2 per cent against its US counterpart following three consecutive years of negative returns. It was trading just under US69.5 cents yesterday.

While it and the Australian dollar were hit heavily after the surprise US election victory by Republican Donald Trump, the Kiwi has been supported by a run of strong domestic economic data as well as a rally in the global price for milk, the country’s top export earner.

The NZ dollar was strong against the Aussie currency, sitting just under A96.50c on Friday. Analyst reports say the currencies are likely to remain neck and neck until one central bank moves to change interest rates.

New Zealand’s benchmark S&P/NZX 50 index fell slightly yesterday to 6881.2 points.

But, taking an annual view, the index rose 9 per cent in 2016 gaining for a fifth straight year.

It finished the year with a market capitalisation of NZ$114 billion with 174 instruments listed.

Across the Tasman, the Australian share market delivered its strongest returns in three years, overcoming major global shocks to rise seven per cent in 2016.

The Australian market’s bestperforming sectors were the previously battered materials sector, up 39 per cent, and energy, up 14 per cent. Banks rose 5.4 per cent, industrials gained 8.2 per cent and consumer related stocks improved by 8.5 per cent.

The worst-performing Australian sectors were the defensive sectors like telcos, down 10.5 per cent, and healthcare, up just 0.5 per cent.