The NZX-50 went through the important 3000-point barrier yesterday for the first time in nine months on the back of improved investor confidence.
The index has risen for the previous 10 consecutive trading days from a low below 2740.
It closed last night at 3018, up more than 20 points.
ABN Amro Craigs broker Chris Timms said the improved confidence was driven mainly by a resurgence in international markets, particularly the Dow Jones Industrial Average, in the United States.
The Dow yesterday rose 15 points to close at 9108, with the home construction index shooting up 4.3% after data showed US new home sales posted their biggest monthly gain in eight years in June.
That move suggested the housing market might be starting to recover from its worst slump since the Great Depression of the 1930s.
Stronger-than-expected earnings, coupled with upbeat economic data, have lifted the US indices recently, giving stocks their best two-week run since just after the Standard & Poor's 500 hit a 12-year closing low in March.
The three major indices, which include the technology rich Nasdaq, rose about 11% each over the past two weeks.
Asked if the latest rally was a false recovery or the real thing, Mr Timms said there was still many underlying problems remaining in global economies.
"I wouldn't be surprised to see a retreat, especially if companies who are reporting disappoint with their results.
"I doubt we will see a broad sell off like before.
"But we might see a general easing."
People were prepared to take more risk with the prospect of earning more money, especially when they saw their money sitting around in banks earning not much, he said.
