NZ shares buoyed by prospect of low rates; Spark gains
The S&P/NZX 50 Index advanced 43.94 points, or 0.4 percent, to 10,873.33. Within the index, 19 stocks rose, 27 fell, and four were unchanged. Turnover was $69.4 million, with just two stocks trading on volumes of more than a million shares.
The New Zealand and Australian markets were in the minority in posting gains across Asia, following a weaker lead from Wall Street when an apparent breakdown in trade negotiations triggered fears over global growth to re-emerge. New Zealand and Australian central banks are expected to continue cutting their benchmark interest rates, which has been a boon for equity markets in providing cheap finance to corporates and also increasing the relative returns from stocks.
"If things are going well and they cut rates, that can be good for equity markets," said Grant Davies, an investment advisor at Hamilton Hindin Greene.
Spark was the most traded stock on the day on a volume of 3.1 million shares, below its 90-day average of 3.3 million. It rose 1.8 percent to $4.43, defying a barrage of criticism that included acting Prime Minister Winston Peters taking it to task over coverage of the opening All Blacks test at the rugby world cup.
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