Prospect of US rate cut keeps yield in demand; Market rises; Fonterra sinks

The S&P/NZX 50 Index increased 13.85 points, or 0.1 percent, to 10,558.28. Within the index, 25 stocks rose, 18 fell, and seven were unchanged. Turnover was $147 million, of which Pushpay Holdings accounted for $61.9 million.

Stocks offering better returns from dividends than those available from bank deposits and bonds continued to attract support after US economic data overnight raised expectations for the Fed to cut interest rates.

Rickey Ward, New Zealand equity manager at JBWere, said if the Fed cuts interest rates, that adds pressure to other central banks to follow suit to avoid the impact on their currencies and following inflationary effects.

"Property stocks have had an unbelievable run, not on any brilliant news, but because they provide dividend yield and have a great degree of certainty around that," he said.