Salt Fund economist Bevan Graham forecasts that New Zealand's tech market is in line for some improvement. Photo: RNZ / Angus Dreaver
New Zealand-listed shares have underperformed compared to many global markets with greater exposure to tech sector gains, though an improving economy could help drive up domestic values.
Salt Fund economist Bevan Graham said New Zealand companies offered good value despite continued market volatility and uncertainty.
"In the US we know valuations are pretty stretched in some sectors, particularly in the tech sector."
In contrast, he said New Zealand's tech-light market was in line for some improvement.
"With respect to domestic equities, we think the outlook is improving here in New Zealand, but look, we're not immune to that global volatility.
"There are certainly risks out there to be to be mindful of, but there are pockets of opportunity out there as well."
Graham said easing inflation and interest rates cuts were supporting economic growth.
"So we'll see a long period of earnings downgrades in New Zealand gradually starting to switch to upgrades as as the year progresses," he said.
Still, a recent survey by New Zealand do-it-yourself retail investment app Sharesies found investment in US tech exchange NASDAQ was the most popular exchange among users.
Sharesies acting commercial and financial officer Erin Avery said nine-of-the-10 largest declines were NZX investments over the past year.
"Notable exceptions were NZX listed Fisher & Paykel Healthcare and the Fonterra Shareholders Fund." Both those companies were actively using technology to drive growth.
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