Investors chasing yield push the sharemarket higher

The S&P/NZX 50 Index advanced 126.83 points, or 1.1 percent, to 11,259.41. Within the index, 28 stocks rose, 18 fell, and four were unchanged. Turnover was $163.6 million.

The Reserve Bank today kept the official cash rate at 0.25 percent and maintained the size of its quantitative easing programme at $60 billion, while noting that it may roll out more tools to support the economy. The central bank also tried to jawbone down the currency, saying it was elevated and weighing on export earnings.

The kiwi dollar gave up earlier gains, ending the local trading session largely unchanged at 64.60 US cents at 5pm in Wellington, and weaker against its trans-Tasman counterpart at 93.07 Australian cents.

Perpetually low interest rates have been a key driver in pushing share prices higher as investors seek income at a time when returns on term deposits barely keep up with inflation.