TPP agreement boosts NZ shares

  • 06/10/2015
TPP agreement boosts NZ shares

New Zealand shares have gained after agreement was reached on the Trans Pacific Partnership deal.

The S&P/NZX 50 Index rose 37.57 points, or 0.7 percent, to 5668.11 today.

Within the index, 30 stocks rose and 11 fell. Turnover was $113 million.

Overnight 12 Pacific Rim nations including New Zealand reached a deal on the controversial TTP, which covers 40 percent of the global economy.

Xero, the cloud-based accounting software firm forgoing profit to fund its US push, gained 2 percent to $15.30.

"A bit more risk on trading seems to be what we're seeing today," said James Smalley, director at Hamilton Hindin Greene.

"The market's been worried about economic growth and maybe with that TTP deal sentiment has turned to a positive again...

"Xero is the bellwether for how the market is feeling."

Adding to investors' confidence, weaker data in the US raised speculation the Federal Reserve keep interest rates lower for longer.

"It was ironically weaker than expected job data in the US that maybe pushed out rates cuts and the market gets excited," Mr Smalley said.

"Investors are looking for some beaten down stocks, for example Fletcher Building was at three-and-a-half year lows before."

Fletcher climbed 2.9 percent to $7.20 while SkyCity Entertainment Group, another stock to have lost ground in recent months, advanced 3.1 percent to $3.94.

Contact Energy was the worst performer on the benchmark down 1.8 percent to $4.86. Mighty River Power declined 1.2 percent to $2.49.