NZ sharemarket rises as investors return to blue-chip stocks

The S&P/NZX 50 Index increased 120.97 points or 0.97% to 12,572.66 while the major United States and Australian indices were flat and the Chinese – recently boosted by an economic stimulus – were closed for the Golden Week public holiday.

Trading was lower in the school holidays with 31.64 million share transactions worth $118.37m.

David McConnochie, investment adviser with Forsyth Barr, said it was a solid day for the local market driven by moves in large cap, quality stocks.

He said wholesale interest rates continue to fall – the three-year swap was down to 3.45% from 4.67% at the start of July – and that market was pricing a reduction in the official cash rate (OCR) from 5.25% to 4.25% over the next year.