Market & Portfolio Update - February 2024
Markets have started 2024 on the front foot, with global shares up almost 10% in New Zealand dollar terms. The theme of AI integration and its impact on companies continues to play an important role, with technology businesses leading the market.
We also saw an important RBNZ meeting held during the month, with the Reserve Bank holding the Official Cash Rate steady at 5.5%. We gained more clarity on the path to lowering interest rates, with the RBNZ expecting that we may see cuts early in 2025. As a result, we saw banks begin to lower mortgage rates (albeit marginally).
The New Zealand share market saw the latest round of financial reporting, where companies report either their half-year or full-year financial results. Overall, these results fell short of expectations, contributing to the -1.1% return for the New Zealand share market last month. Despite this, there were standout performances, notably from A2 Milk, which surged 20% following robust results. A2 Milk has continued to take market share in a competitive Chinese infant formula market.
What could Capital Gains Tax mean for property investors?
If Capital Gains Tax (CGT) is introduced from 1 July 2027 under Labour’s proposal, property investors will naturally want to understand what it could mean for them, particularly if they already own property that has increased significantly in value.
Selling a short-term rental: Will GST apply?
In certain circumstances, GST is not due on the sale of a property, even if it has been used for short-term accommodation (such as Airbnb), the income has exceeded $60,000 in any 12-month period, and/or the entity is GST registered.