In general, the NZSE40 is consistently determined by the interest rate, money supply and
real GDP during 1990-2003. Our results suggest that investment perception of New Zealand is a
mixture of other mature stock markets, as was found in Korea, the US and Japan. Thus, investors
who are interested in investing in New Zealand should pay more attention to the above mentioned
macroeconomic variables rather than the exchange rate and inflation rate index (CPI).