NZ shares rise with global sentiment
New Zealand shares have advanced as investors bought yield stocks in anticipation of interest rates falling and as global sentiment became more upbeat.
The S&P/NZX 50 Index rose 55.08 points, or 1 percent, to 5805.96 today.
Within the index 32 stocks rose, 11 fell and seven were unchanged. Turnover was $126 million.
Investors bought income-paying equities, like utility companies, on the anticipation the Reserve Bank will move to cut the official cash rate a further 25 basis points to 3 percent next week, with traders pricing in a 92 percent chance of a cut.
Meridian Energy climbed 4.8 percent to $2.18 and Spark New Zealand rose 0.9 percent to $2.865.
"You've got 16 economists out of 16 saying a rate cut next week, obviously [between] interest rates and share markets there is a very strong negative correlation," said James Smalley, director at Hamilton Hindin Greene.
"A rate cut makes yield plays look quite attractive. People are focusing more on the micro than the macro, which has been dominating headlines for the last few weeks."
Further boosting sentiment was more certainty around the outlook for Greece and its deal with creditors, while Chinese economic data exceeded expectations.
Air New Zealand led the benchmark index higher, jumping 6.3 percent to $2.69. Other gainers included A2 Milk Co 4.1 percent to 77 cents, Trade Me Group 2.2 percent to $3.32 and SkyCity Entertainment Group 2 percent to $4.19.
Pacific Edge, the Dunedin-based biotech firm, was the worst performer on the day, down 1.5 percent to 65 cents.