NZ shares extend gain as passive funds bolster prices; Tourism Holdings climbs
The S&P/NZX 50 Index increased 12.06 points, or 0.1 percent, to 10,753.15. Within the index, 27 stocks rose, 18 fell, and five were unchanged. Turnover was $97 million, with just four companies trading on volumes of more than a million shares.
Trading has been quieter than usual over the school holiday period and almost half the transactions through the exchange in recent days have been in the 15-minute match period before the market closes.
Matt Goodson, managing director at Salt Funds Management, said that suggested passive investment funds had an outsized influence on the market, which hit a record 10,783.18 in intraday trading today.
"They don't care what price they pay for anything and that's quite a factor at the moment," he said. "When you get such strong price momentum, you do get trend followers jumping on board as well."
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