The good times have well and truly returned to the New Zealand sharemarket, with the S&P/NZX 50 breaking through the 6000 mark for the first time today to close at a fresh record.
But Craigs Investment Partners analyst Mark Lister is advising caution, saying investors aren't "out of the woods" and global concerns such as slowing growth in China could spark more of the volatility that caused markets to tumble in August.
The S&P/NZX 50 has gained 8.2 per cent since September 4 and closed up 30.35 points, or 0.5 percent, at a record close of 6001.02 this evening, driven by gains in big stocks including Fisher & Paykel Healthcare, Spark and Meridian Energy.
The index has gained almost 8 per cent in the year to date.
Lister pointed out that the S&P/NZX 50, unlike its counterparts such as Australia's S&P/ASX 200, includes dividends and had been bolstered by recent payouts.
"If you were just looking at share prices then it wouldn't be at a record high."
However, he said this month's market resurgence had been driven by a range of factors including share buying by bargain hunting investors and upbeat annual meetings from major companies such as Auckland Airport and Air New Zealand.
A Chinese interest rate cut and hints of fresh monetary stimulus from the European Central Bank have also buoyed markets.
"You've got this backdrop of central bank stimulus that's stabilised markets and seen a bit of confidence come back in," Lister said.
"But that doesn't fix some of the underlying concerns, particularly in China. The Chinese cutting interest rates probably tells us they still have things to worry about on the ground there."