Shares rise as negative interest rates loom

The S&P/NZX 50 Index rose 220.81 points, or 1.9 percent, to 11,672.95 — the biggest gain since mid-June. Within the index, 40 stocks rose, six fell and four were unchanged. Turnover was $136.3 million.

The Reserve Bank of NZ, which looks increasingly likely to implement negative interest rates, helped fuel the benchmark’s gain since as investors turned to the share market for yield.

The index recovered much of the losses it sustained after the virus flare-up caused the market to finish last week 2.7 percent below its Tuesday close.

“We’ve seen the RBNZ come through very dovish and some banks forecast rates going lower. That is pushing people toward yield producing equities,” Chris Smith, NZ general manager at CMC said.