10 Aug 2011

NZ market rally expected

8:58 am on 10 August 2011

Milford Asset Management fund manager Brian Gaynor says he expects a reasonable rally in New Zealand's financial markets on Wednesday, despite this week's dip.

The NZX50 index dropped 2.7% on Tuesday to close at 3097 - its lowest level in nearly a year - on turnover of $116 million.

Mr Gaynor told Morning Report the downturn creates opportunities and fund managers were buying equities cheaper than they could two weeks ago.

He said the panic situation in the Northern hemisphere is not happening here and the decline in the value of the dollar was in fact a relief to exporters.

Mr Gaynor said the outlook in the New Zealand economy is far more positive than it is in Europe or North America.