[suebeenz]

Hi,

I was wondering if anybody could tell me which financial sites/papers people read here for NZ specific stock info. Also, does anyone have a favorite discount brokerage firm that they use to trade NZ stocks? (does one exist?)

I'm afraid I don't know anything about the NZ stock market, but it recently occurred to me that I should have a look.

Thanks! :yes

[khhill]

Kates's husband here...
NZ brokerage fees are still much higher than other financial markets and the level of transparency is like the mud pools in Rotorua.

From NZX.com
"Brokerage fees are usually either a percentage of the value you're trading, or a set fee per transaction. The percentage varies with the size of the transaction. The set fee is usually between $20 and $30, although it does vary. Set fees are common for discount brokers (where you place orders only and do not get investment advice)."

Telecom makes up about 12% of the NZ market and it is also listed on the NYSE as an ADR. This means that it can be purchased via a US discount broker for much less! A few other NZ stocks are also listed on the NYSE as are a good number of Australian stocks, who just happen to own all of our banks, well almost all.

I am not aware of any daily newspaper for NZ, Australia has the AFR which is expensive to ship here and I don't think they have an online equivalent yet, although I am not entirely sure.

[jo-and-jeff]

Based on a casual conversation with some people the other day, buying stocks is an entirely different thing in NZ than it is in the US. It's my understanding that there are severe financial implications for buying stock and then selling it short-term; if you buy stock, you buy it and keep it for awhile. If you do frequent buying and short-term selling, you are branded a "trader" by the IRD and there are major tax consequences to this.

I recommend that you find a NZ attorney who specializes in investment law to give you a good education on the ins and outs of this before you actually attempt to participate in buying stocks.

Jo

[suebeenz]

Thanks guys for your replies.

Actually I did a tad more searching and found info on this enz site (http://www.emigratenz.org/stockmarketinvesting.html) . :)

Some highlights below:

Provided you are an investor living in New Zealand, there is no tax to pay when you sell your investments in New Zealand or Australia for a profit. (People living in Australia do pay capital gains tax.)

If, however, you are a share trader, (buying and selling shares frequently for a profit), your profits will taxed as part of your income.
...
New Zealand is a small country. The largest companies traded on its stock exchange, the NZX, would not be considered large in countries like the US or UK. Many of New Zealand's companies would be considered to be microcap stocks in the United States. New Zealand's largest company (NZ Telecom) is worth about US$6 billion.
....
Legislation introduced in 2006 determines that, from 2007, if you are resident in New Zealand and have more than NZ$50,000 worth of investments overseas, the New Zealand government will tax you on unrealised capital gains.

This means if your stocks increase in value, you will be taxed on this increase even if you do not sell your shares. Only a small part of the tax is charged on the unrealised gains. The bulk of the tax is collected when you sell the shares and bring the money into New Zealand.
...

However, I still don't know what constitutes "buying and selling shares frequently" here in NZ. Sounds like their index funds have been doing very well.

[Jax]

Handy if you already bank with ASB
http://www.asbsecurities.co.nz/