Banks shares rise on back of Australian election results
The S&P/NZX 50 Index increased 53.35 points, or 0.5 percent, to 10,234.15. Within the index, 28 stocks rose, 16 fell, and six were unchanged. Turnover was light at $77.2 million, with just three stocks trading on volumes of more than a million shares.
Dual-listed banks led the market higher, with Westpac Baking Corp up 9.1 percent at $29.25 and Australia & New Zealand Banking Group rising 7.7 percent to $29.35. AMP rose 3.9 percent $2.40. The Australian lenders were under pressure from the prospect of a Labor government, which wanted to remove franking credits on dividends and limit negative gearing to new investment properties.
"Investors are very much in favour of their franking credits," said Grant Davies, an investment adviser at Hamilton Hindin Greene. "New Zealand investors are going to have exposure over there."
Of companies with large Australian exposures, Fletcher Building rose 2 percent to $5.20, Heartland Group Holdings increased 1.3 percent to $1.60 and SkyCity Entertainment Group advanced 0.8 percent to $3.88.
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