27 Jun 2012

Weldon says momentum of NZ market at a high

6:59 am on 27 June 2012

The former head of the Stock Exchange says momentum in New Zealand's capital markets is about as good as it has ever been.

Fonterra's farmer shareholders this week voted in favour of introducing the long-debated Trading Among Farmers scheme, which will open the co-operative up to outside investment.

Meanwhile, Parliament on Tuesday passed legislation to partially sell four state-owned energy companies.

NZX former chief executive Mark Weldon says both developments provide a real boost to the capital markets.

"You've got a large tranche of the Government-owned businesses coming to market, and Fonterra in some form coming to market, and that's two sectors of the economy no-one's been able to invest in before or achieve a return or a dividend from.

"So it really does change and broaden and deepen the profile of the market so in conjunction the momentum around the New Zealand market has to be as positive as anyone can remember."