Investors' appetite for stocks a bet on Fed Reserve interest rates

New Zealand shares rose yesterday as investors looking for yield pushed equities higher. Spark New Zealand, Genesis Energy and Kiwi Property Group advanced.

The S&P/NZX 50 index rose 44.31 points, or 0.8 per cent, to 5820.01. Within the index, 35 stocks rose. Turnover was $170 million.

Weaker than expected US retail sales and producer inflation data have fuelled speculation the US Federal Reserve will keep rates at zero for the rest of the year. The prospect of lower rates for longer boosted investor demand for equities, and saw markets across Asia climb.

Dividend-paying stocks gained. Genesis advanced 1.9 per cent to $1.84. Meridian Energy climbed 1.4 per cent to $2.19. Mighty River Power rose 0.8 per cent to $2.56.

Kiwi Property Group increased 1.9 per cent to $1.325. Precinct Properties New Zealand advanced 0.9 per cent to $1.19. Goodman Property Trust gained 0.4 per cent to $1.19.

Argosy Property rose 0.5 per cent to $1.075. Spark climbed 2.4 per cent to $3.20.

"There seems to be an increasing view that there's less likelihood that the Fed will put up rates this year and I think people have taken that as a positive," said Paul Harrison, Salt Funds Management. "The cheap money is going to keep flowing through the equity market and the financial markets for a little longer."

Fletcher Building rose 0.8 per cent to $7.24. Auckland International Airport gained 1.9 per cent to $5.095. Warehouse Group climbed 2.3 per cent to $2.66.

Units in Fonterra Shareholders' Fund fell 0.9 per cent to $5.35. Fonterra, the world's largest dairy exporter, said milk production has dropped heading into the seasonal peak as suppliers to New Zealand's largest commodity exporter respond to low dairy prices by winding back output.

Sky Network Television gained 1.4 per cent to $5.17. The New Zealand Shareholders' Association will oppose Sky TV's bid to lift directors' fees 27 per cent, with the retail investor lobby saying details around the hike are "woefully inadequate".

Trade Me Group was the worst performer on the benchmark index down 2.1 per cent to $3.77.

Metro Performance Glass, the glass manufacturer, led the benchmark index higher up 4.2 per cent to $1.48.

Outside the benchmark index, Kirkcaldie & Stains rose 2.3 per cent to $2.25.

Veteran corporate raider Ron Brierley has lifted his stake in the unprofitable Wellington department store for the third time since Australia's David Jones announced plans to take it over.