Yield hunt lifts Genesis, Auckland Airport to records

The S&P/NZX 50 Index increased 23.17 points, or 0.2 percent, to 10,431.22. Within the index, 27 stocks rose, 20 fell, and three were unchanged. Turnover was $105.1 million.

Investors have been taking on equity risk in their hunt for yield over the past 12-18 months as the outlook for global interest rates is for them to stay lower for longer. The yield on 10-year New Zealand government bonds fell as low as 1.535 percent last week and has been in the unusual position of being lower than their US counterpart since April last year.

That low rate environment has underpinned demand for utilities, infrastructure companies and property firms, many of which have been near all-time highs. Auckland Airport led the market higher today, up 2.2 percent to a record $9.80 on a volume of 1.2 million shares, in line with its 1.3 million 90-day average.

Genesis Energy rose as high as $3.38, ending the day at $3.31, up 2 percent. Infratil increased 2 percent to $4.64, Precinct Properties New Zealand advanced 1.7 percent to $1.765 and Mercury NZ was rose 1.4 percent to $3.93.