NZ shares rise on yield demand
New Zealand shares have gained on demand for high-yielding stocks ahead of what's widely expected to be an interest rate cut by the Reserve Bank this week.
The S&P/NZX 50 Index rose 25.85 points, or 0.5 percent, to 5572.73 today.
Within the index, 28 stocks rose, 17 fell and five were unchanged. Turnover was $105 million.
Reserve Bank governor Graeme Wheeler is expected to cut the official cash rate by a quarter point to 2.75 percent on Thursday and the prospect of lower rates has drawn investors to equities.
Income paying stocks rose, with Spark New Zealand up 1.4 percent to $3.215, Fletcher Building 1.3 percent to $7.04, Meridian Energy 0.7 percent to $2.165 and Tower 1.5 percent to $2.06.
"Investors wanting returns and income are looking more towards equity market rather than the term deposits and with another interest rate cut on the horizon it's pretty much understandable," Grant Williamson, director at Hamilton Hindin Greene said.
"A lot of these people switching from fixed interest to the share market are not natural equity investors, so they'll be looking at the more conservative stocks that offer good income."
A2 Milk Co led the benchmark index higher up 5.9 percent to 72 cents.
Sky Network Television rose 1.5 percent to $4.65, rebounding from a three-year low.
Kathmandu Holdings fell 3.1 percent to $1.58.