NZ shares recover as investors re-think RBNZ review
The S&P/NZX 50 Index increased 63.82 points, or 0.6 percent, to 10,899.25. Within the index, 26 stocks rose, 16 fell and seven were unchanged. Turnover was $149.5 million.
Utilities and property stocks dropped sharply yesterday when the Reserve Bank kept the official cash rate at 1 percent, surprising many analysts and investors who had predicted it would cut the key rate to 0.75 percent.
Greg Smith, head of research at Fat Prophets, said yesterday’s reaction was probably overdone as bond yields had already started to rise and a number of central banks around the world had pared back easing biases.
“Whether the cash rate is at 1 percent of three-quarters of a percent hasn’t changed a lot in terms of the appeal of high yielding stocks that we’re blessed with a lot of,” he said.
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