International share market spike spells good news for Kiwi investors

  • 16/11/2023

A spike in the international share market could spell good news for Kiwi investors as the global rate hike cycle slows.  

Global sharemarkets are seeing a spike as expectations of interest rate hikes slowing and benign inflation spurred investors.  

And Kiwis are reaping the rewards with domestic share prices jumping this month as well.

Many Kiwis will be seeing the effect of this in their KiwiSaver accounts, which have seen a boost over the past week.  

Milford Asset Management portfolio manager Felix Fok told AM there appears to finally be some relief for Kiwi investors after two years of "pretty lean returns". 

"It's particularly pleasing for investors who have stuck to their guns and stayed invested," Fok told AM co-host Ryan Bridge on Thursday.  

"This has been a very good period for markets. You mentioned the US markets are leading it, some of this has to do with investors anticipating a change, a turn in potentially central bank policies towards interest rate hikes.  

"We've just witnessed one of the fastest periods in terms of the ratcheting up of interest rates – the cost of money. So as the cost of money goes up your asset prices - be it property, shares or bonds - will tend to go down in response." 

But Fok said as we come to the end of that cycle, we are starting to see some relief and asset prices increasing.  

Watch the full interview above.