NZ shares outperform Asia on persistent demand for reliable income

Peter McIntyre

The S&P/NZX 50 Index rose 61.02 points, or 0.6 percent, to a record 10,388.31. Within the index, 21 stocks gained, 23 fell, and six were unchanged. Turnover was $89.8 million.

The local market was the top performer across Asian benchmarks tracked by Refinitiv. The NZX50 has been buoyed by its heavy weighting towards utilities, infrastructure firms, and property investment companies, with investors paying a premium for reliable dividend income at a time when interest rates remain low around the world. The NZX50's average dividend yield at 4.62 percent is the third-highest across Asia behind Pakistan's Karachi 100 Index and Australia's S&P/ASX 200 Index.

Peter McIntyre, an investment advisor at Craigs Investment Partners, said the pending rate review by the Reserve Bank was the major domestic event this week.

"I don't think anyone expects the trigger to be pulled. The commentary is the interesting part of that announcement," he said.