The NZX50 index is likely to bust above the 6000-point mark as investors look for income in times of falling interest rates.
The Reserve Bank cut the official cash rate yesterday to 3% and governor Graham Wheeler indicated further cuts were likely.
Westpac remained confident with its forecast of a cash rate of 2% by the end of the year while other banks were forecasting a low of 2.5% by October.
The NZX50 followed the lead of the Dow Jones yesterday, closing down at 5901.3. It closed on Wednesday at 5927.
However, Craigs Investment Partners broker Chris Timms expected the low interest rates to spark more life in the market.
''It's all about income and investors are not getting it from the bank.''
As interest rates fell, the cost of borrowing for companies would also fall and the cash flow spent on investing in growth was likely to increase.
Exporting companies, other than those in dairying, would benefit from a falling currency and investors would be attracted to those companies, he said.
''Companies like Fisher and Paykel Healthcare, Diligent and Scales will all benefit from this market tailwind.''
Conversely, Fletcher Building shares fell in value yesterday, probably as a result of Mr Wheeler saying the Christchurch rebuild had peaked.
The one cloud on the market was the decision on August 3 by New Zealand Aluminium Smelters about the future of Tiwai Point, Mr Timms said.
If NZAS decided to close the smelter, it would have a negative effect on the market.
''Looking ahead, the general climate for the NZX is looking positive.''
NZX50 at a glance
July 2001: 1665
July 2005: 3316
July 2010: 2933
July 2015: 5919
