Market Close: Electricity stocks fall as interest rates rise

The S&P/NZX 50 Index fell 62 points, or 0.5%, to 12902.71. Turnover was $134 million.

Three of the top five decliners on the index today were electricity generators, which are often bought by investors as they provide a steady dividend yield.

However, higher yields on government bonds have been reducing what the market is willing to pay for stocks that carry more risk than a bond.

Mercury NZ, which fell 2.8% to $5.92 today, has declined more than 10% since the end of August as the yield on a 10-year government bond climbed from 1.6% to 2.6%.