Nats' victory 'a win for investors'
Milford Asset Management’s Brian Gaynor said the result removed uncertainty that had been lingering in the market.
There had been concerns about the potential effects of Labour’s proposed capital gains tax and the party’s proposed single-buyer electricity policy, and fears that the country could be without a government for some time if National or Labour had to cobble together a coalition to govern.
Gaynor said: “It’s obvious there’s a huge mandate for the National government, I don’t think anyone expected it to be so strong. There had been fears that Winston Peters would be in the middle in a controlling position spending months negotiating to get a property government but we have a clear government [today]. That will make investors very happy.”
He said it was hard to know how long the positive effect of the election result would linger in the market. “I think there’s probably 5% to 8% upside over the next few months… the electricity sector should have a good day [today].”
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