15 Oct 2017

Shares hit record despite government uncertainty

6:55 am on 15 October 2017

Share prices have hit a record high, despite uncertainty over who will form the next government.

The NZX50 closed on Friday at 8089 points, an all-time record.

Craigs Investment Partners broker Peter McIntyre saidwhile shares did fall in the days after election night, they have since picked right up.

That was because the underlying economy in New Zealand was strong, and good dairy prices, low interest rates and strong migration numbers were drawing investors, he said.

He predicted a National and New Zealand First government would mean current share market prices would stay high, but a Labour, New Zealand First and Greens coalition could see a fall in the market.

The New Zealand First board and caucus is meeting this weekend to make a decision about who to strike a coalition deal with.

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