New Zealand shares continued to rise, led by Guinness Peat and Xero, as investors bought into companies that have been sold off this year seeking opportunities in a low interest rate environment.
The NZX 50 Index gained 10.358 points, or 0.2 per cent, to 5552.097. Within the index, 21 stocks rose, 17 fell and 12 were unchanged. Turnover was a smaller than usual $84.6 million.
International markets were spurred higher last week after US Federal Reserve policymakers renewed optimism in global equities with their promise to be patient on raising interest rates.
Meanwhile, Reserve Bank governor Graeme Wheeler has kept the official cash rate on hold at 3.5 per cent, after hiking it 100 basis points between March and September, and pulled back its track for future increases.
Investors typically favour stocks when interest rates are low as fixed interest assets offer smaller returns.
"We have had very strong gains over the last few days from offshore markets as things really rebounded and that's continued," said Mark Lister, head of private wealth research at Craigs Investment Partners.
Investors looked to buy into cheaper equities in a benchmark index which has gained 17 per cent since the start of the year.
Xero, the worst performer on the NZX 50 this year with a 51 per cent fall, advanced 3 per cent to $15.70. Guinness Peat, the fourth worst having dropped 29 per cent, led the benchmark index higher up 3.7 per cent to 42 cents.
Kathmandu was the worst performer on the day sliding 4.6 per cent to $2.10 its lowest since January last year, paring an intraday drop to $2.05.
It comes after the outdoor equipment retailer on Monday reported a slowdown in sales growth after a subdued start to Christmas shopping in its Australian market.
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