Shares rise, dollar softens as negative cash rate predicted

The S&P/NZX 50 Index rose 176.18 points, or 1.5 percent, to 11,849.13. Within the index, 41 stocks rose, five fell and four were unchanged. Turnover was $217.8 million.

Record-low interest rates have been fuelling a rotation out of cash and into the share market with investors seeing it as one of the few options for a return on capital.

“The Reserve Bank has driven interest rates down to remarkably low levels,” said Matthew Goodson, a director at Salt Funds Management.

“Savers are being forced out of term deposits, out of fixed interest investments and up the risk curve into equities.”