Market Update March 2024

 By Mike Ross

Global Share Markets:

In March, global share markets maintained their upward trajectory, with international shares registering a third consecutive positive monthly return, marking a 5.2% increase in New Zealand dollar-unhedged terms (3.5% when hedged). Sector performance was broadly positive, particularly in energy, materials, and utilities, which reflects ongoing confidence in the global economic recovery and corporate performance.

New Zealand Share Market:

Locally, the New Zealand share market also demonstrated strength, with the market delivering a return of 3.3%. Fisher & Paykel Healthcare hit a 10-month high following an upgrade of its full-year revenue and profit guidance. Fletcher Building shares meanwhile regained some of their recent fall as the company announced several senior management changes. Contact Energy was also a strong performer during the month.

Bond Markets:

Bond markets saw positive movements as well, with NZ bonds returning 1.1% and global bonds 0.9%. Notably, despite relatively flat 10-year government bond yields in the US, New Zealand experienced a decline of 16 basis points, to 4.5%, indicating investor appetite for fixed-income securities, and the potential for future rate cuts locally given the poor state of the economy.