Although many people are suggesting that the New Zealand sharemarket is nearing the end of a good run, ING senior investment manager Amanda Smith is painting a different picture.
She says she is more bullish than many other commentators on the prospects of the local bourse.
"I'm a bit more optimistic than most (commentators)," she says. "There's no big fall off the cliff (ahead)."
While the dollar has risen and commodity prices have fallen back, Smith believes that the agricultural sector has enough momentum to keep going.
Adding to her positive picture is the impact of immigration. She says the number of immigrants arriving in New Zealand is supporting the Auckland housing market. That in turn helps increase the wealth effect amongst homeowners.
Smith says the most recent reporting season showed that New Zealand companies are in good shape, with many reporting some "pretty spectacular" earnings surprises.
She is forecasting double digit earnings growth to continue.
"We think that New Zealand companies can deliver good results going forward."
Smith says the other things in favour of the New Zealand sharemarket is the solid composition of the companies listed on the exchange and their transparency.
While accounting issues have been big news overseas, the sceptre of corporate fraud doesn't hang over the local market.
She points out that New Zealand companies have a high dividend yield by international standards. Because the companies actually pay out cash there is less likelihood of fraud.
Smith says another positive for the New Zealand sharemarket is the New Zealand Superannuation Fund (aka the Big Cullen Fund).
This fund is likely to invest about $250 million into the market in its early stages and the level of investment could rise to $800 million a year as the level of government contributions increases.
Overall Smith reckons the New Zealand sharemarket is looking good at present.
"We think our market is good value at current levels," she says.
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