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NZ shares rise for seventh day

NZ Newswire logoNZ Newswire 2/05/2017 Paul McBeth

NZ shares rose for a seventh day as a pick-up in risk appetite prompted investors to renew their hunt for stocks offering relatively high dividends. © Getty Images NZ shares rose for a seventh day as a pick-up in risk appetite prompted investors to renew their hunt for stocks offering relatively high dividends. New Zealand shares rose for a seventh day on Tuesday, following Wall Street higher, as a pick-up in risk appetite prompted investors to renew their hunt for stocks offering relatively high dividends.

Air New Zealand and Genesis Energy gained.

The S&P/NZX 50 index increased 40.27 points, or 0.5 per cent, to 7422.49. Within the index, 28 stocks gained, 15 fell, and seven were unchanged. Turnover was $134 million.

Asian stock markets were largely higher in afternoon trading as Wall Street's Nasdaq Composite Index trades at near record levels in an environment where investors have regained their appetite for riskier assets.

"Notwithstanding the fun and games on the Korean peninsula, people are pretty comfortable with where the world's at at the moment," said James Smalley, a director at Hamilton Hindin Greene.

"Interest rates might not rise as quickly as expected and people are still looking for a bit of yield."

Air NZ led the benchmark index higher, rising 3.3 per cent to $2.695.

The company on Monday said former Prime Minister John Key will join the airline's board from September and the national carrier has fared better than domestic rival Jetstar in recent reputational surveys.

The stock was trading at a dividend yield of 17 per cent.

Power companies, which are typically held for their relatively attractive dividends, also gained.

Genesis Energy, which on Monday announced the acquisition of Nova Energy's LPG retail business, rose 1.6 per cent to $2.185, Mercury NZ increased 1.9 per cent to $3.23, and Meridian Energy advanced 1.4 per cent to $2.83.

A2 Milk Co posted the biggest fall on the day, down 2 per cent to $3.36.

ANZ Banking Group fell 1.7 per cent to $35.10 after the dual-listed lender posted a 23 per cent gain in first-half earnings as it slashed staff to cut costs in the face of shrinking interest margins.

NZME shares fell 2.2 per cent to 89 cents ahead of Wednesday's Commerce Commission decision on whether the news media group will be allowed to merge with domestic rival, Fairfax.

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