Investor demand for reliable dividends wins the day

The S&P/NZX 50 Index advanced 59.35 points, or 0.5 percent, to 11,494.14. Within the index, 29 stocks rose, 17 fell, and four were unchanged. Turnover was $129 million.

Trading on the benchmark was volatile as investors swayed between the covid-19 outbreak worsening offshore and a more positive outlook in the domestic economy. Investor demand for reliable dividends won out as the NZX 50 ended the day stronger, having spent much of it in the red.

The local trading day started on the back foot after California's state government reinstated restrictions to slow the rise of coronavirus infections, and as the US and China traded barbs over the South China Sea. Asian markets were generally weaker with Hong Kong’s Hang Seng down 1.7 percent in late trading, Shanghai’s Composite index down 1.1 percent, and Australia’s S&P/ASX 200 falling 0.8 percent.

“The sentiment offshore was pretty soft overnight,” said Sam Trethewey, a portfolio manager at Milford Asset Management.