The NZX 50 Index has climbed to a new record, following a global equities rally.
Power companies paced Tuesday’s gains after political polls have put the government ahead, helping dispel fears the opposition parties will be able to regulate the electricity sector as proposed after the September election.
The benchmark index rose 47.638 points, or 0.9 per cent, to 5135.664. Within the index, 27 stocks rose, 12 fell and 11 were unchanged. Turnover was $167 million.
Better than expected US industrial production figures kicked off the global rally in equity markets.
Mighty River Power climbed 3.2 per cent to $2.07, while fellow partially privatised electricity provider Meridian advanced 1.9 per cent to $1.095.
Contact rose 0.6 per cent to $5.25. Vector, the Auckland-based lines company, lifted two per cent to $2.54.
“The electricity sector is up, and I’m going to put it down to the Herald DigiPoll results which were published, because they’re up across the board,” said Greg Easton, investment adviser at Craigs Investment Partners.
“If there is no change in government, then that sector could really outperform after the election.”
Xero, the cloud-based accounting software developer, led the market higher, up 3.7 per cent to $43.61. Fletcher Building, New Zealand’s largest listed company, advanced 1.5 per cent to $9.74.
Chorus, which has dropped 41 per cent over the past year, rose 1.8 per cent to $1.71 as it continues its court appeal against the Commerce Commission’s pricing of its copper lines.
“They are still at half of where they were, but they have generated enough confidence in certain sectors of the market for people to be interested in it again,” Mr Easton said.