Forum Archive Index - May 2002

["Craig Hoskin" <craig@infobahnz.co.nz>]

Hi ya

 

None of the below is a problem if you use an overseas account ... thus your money is in the local currency, no exchange rate issues or conversion costs etc.

 

I know the problem you are talking about as I had a problem with a trade using ASB on the AUS market.  The trade was going well, and I decided to sell out for what I thought was a reasonable profit ... but most of that was eroded becuse of the different exchange rate between when I bought and sold ... somehting that Id completely forgotten about ... since most of my trades are normally actioned in Aus from an Aussie broking account.

-----Original Message-----
From: sharechat-owner@sharechat.co.nz [mailto:sharechat-owner@sharechat.co.nz]On Behalf Of LWD
Sent: Wednesday, 22 May 2002 9:04 a.m.
To: sharechat@sharechat.co.nz
Subject: [sharechat] Telstra NZ v. AUS - extra question

Say TLS shares were bought on the ASX from NZ.

What procedures are necessary to cash them up whilst

in Australia?  Other than brokerage, is there anything to do or

pay to get Aussie $.

 

If you don't mind - probably an exhausted question.

Is there any situation when you can be double taxed on a

ASX company dividend?

 

Forum members appear to deal a lot on foreign exchanges.

My understanding is that this facility is marginal for the small

short to medium term investor. An example of the extra costs

to purchase on the ASX from NZ are:

20% extra brokerage fees ($NZ to $AU) and

1.4% added to buy cost (currency exchange fee) and

1.4% deducted from sell amount (return exchange fee back to $NZ)

 

Say brokerage @ $AU 29.50 in and $AU 29.50 out = say $NZ 72.00

 

Parcel of $1,000 = 7.2% plus 2.8% fees (in & out) - that's 10%

gain (stock value and/or dividends) to break even.

 

Parcel of $10,000 = 0.7 plus 2.8% exchange fees - that's 3.5% gain

to break even.

 

I know this is basic stuff to the gurus - have I got it right by tending

only to look at the ASX for stock which is longer term buy and hold?

 

Disc: Currently hold NZSE only (90% T10 mainly for volumes traded)

 

Look forward to answers and confirmation - Cheers Lazza

 

 

----- Original Message -----

From: tennyson@caverock.net.nz

To: sharechat@sharechat.co.nz

Sent: 22 May, 2002 11:24 a.m.

Subject: Re: [sharechat] Telstra NZ v. AUS

Hi russ,
 
>
>
>Could anyone tell me what the difference is between buying Telstra
>shares in NZ as opposed to Aus?
>
>

If you are buying with $NZ then you don't have to pay the bank an
exchange rate transaction fee if you buy in New Zealand.   Otherwise
no difference, at least in theory.

Some people would say that it is best to own your shares in the
market with the greatest liquidity, which in the case of Telstra
means Australia.  But I don't think it makes much difference in this
instance.   There is plenty of volume of Telstra being traded in New
Zealand anyway.

SNOOPY



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