NZ stocks: Brokers look for glint of gold

By SIMON HENDERY

There are weeks - and this is one of them - when sharebrokers must feel like gold miners scanning the barren earth of a fresh prospect.

There will be action out there somewhere, but it will take some digging to find it.

Brokers start the week with an almost blank market dairy - the only highlight being Thursday's new transtasman listing of Oceana Gold, whose initial public offering raised A$100 million ($112.6 million).

The company comprises the assets of the existing GRD Macraes mining business in Otago as well as its interests in the Reefton goldfields.

While the reporting landscape may be desolate, enthusiasm to go market mining is high.

A number of shares go ex-dividend this month, including several today.

That would provide a pool of money ripe for investment back into the market, said Macquarie Equities investment director Arthur Lim.

"It kicks money into the system. That flow of funds, in conjunction with a slowdown in the housing cycle, has investors looking for other avenues to earn good returns."

Lim said those investors were increasingly looking for exposure to overseas markets.

"The currency is an issue, with many investors believing it won't stay at current high levels.

"The fact that the New Zealand dollar is back below 65USc is not going to deter people. In fact it reinforces in their minds that investing overseas when the New Zealand dollar is high is a good thing."

Direct Broking equities manager Brett Wilkinson said the United States market's ongoing reaction to the Spanish terror attack would be a key factor to watch this week.