Shares post 6.4% gain in June quarter as yield remains king

The index today rose 69.88 points, or 0.7 percent, to 10,501.10, outperforming other Asian benchmarks as investors remain on edge over the outcome of the G-20 leaders' meeting in Osaka. Within the index, 35 stocks rose, nine fell, and six were unchanged. Turnover was $175.1 million.

Companies paying reliable dividends led the market higher today, with Genesis Energy up 4.8 percent at $3.47 on a volume of 867,000 shares, more than its 90-day average of 596,000. Mercury NZ climbed 4 percent to $4.65 with 917,000 shares changing hands, compared to its usual volume of 670,000. Meridian Energy hit a record $5.03 before ending the day at $4.75, down 1 percent with almost 3 million shares changing hands.

Peter McIntyre, an investment advisor at Craigs Investment Partners, said the Reserve Bank's bias to cutting interest rates even lower continues to support yield stocks, as investors seek out reliable cash flow.

"Since then there's been good buying support, particularly for the yield plays and good infrastructure stocks," he said.