NZX50 delivers 12% gain in March quarter as low rates spur demand for yield

The benchmark index rose 78.76 points, or 0.8 percent, to 9,844.95. Within the index, 37 gained, nine fell, and four were unchanged. Turnover was $136.1 million.

Reserve Bank governor Adrian Orr this week indicated the next move for the official cash rate will be down, triggering a surge in demand for New Zealand equities as investors sought reliable returns from companies with relatively high dividend yields. That typically includes utilities such as power companies and real estate investors. The country's electricity generator-retailers spent much of the week hitting new highs.

In a speech today, Orr welcomed the market's response to this week's statement, where swap rates hit new lows and the currency weakened.

"It's not just New Zealand - it's central banks around the world that have had an impact on equities," said Matt Goodson, managing director at Salt Funds Management. "There are risks that we have reached a quite extreme valuation level."