New Zealand stocks reached a record close, as better polling by the government ahead of the election drew offshore investors back to high yielding stocks such as Meridian Energy, Genesis Energy and Spark.
The NZX 50 rose 7.877 points, or 0.2 per cent, to 5261.745. Within the index, 28 stocks rose, 17 fell and five were unchanged. Turnover was $136 million.
Two political polls last week showed a firming in support for the National-led government returning for a third term led by Prime Minister John Key ahead of the general election on September 20.
Energy stocks are the most prone to be sold ahead of any electoral uncertainty as the opposition Green and Labour parties have promised to introduce a state-owned single electricity buyer in a bid to push down retail prices.
Still, utility stocks offer a high, steady yield, making them attractive in an investment environment where interest rates remain at historic lows.
Meridian Energy climbed 3.5 per cent to a record high of $1.345, Genesis Energy advanced 1.9 per cent to $1.875 and MightyRiverPower rose 1.7 per cent to $2.43.
"MMP is a little difficult for offshore investors to understand so some of them got a little nervous when the polls started to move against National and it was a little less certain around the future," said Paul Harrison of Salt Funds Management.
"Investors seem to be buying these ahead of the dividend being paid, in the anticipation they will carry on with that dividend."
Spark, formerly Telecom, has a dividend yield of 5.9 per cent and rose 1 per cent to a more than six-year high of $3.10.
"We've had a massive bond rally globally, so anything with yield has been very popular and has gone up, in line with bond markets around the world," Mr Harrison said.
Sky TV fell 2.2 per cent to $6.16 after it said it failed to renew the broadcast rights to US PGA Golf, European PGA Golf and the PGA Asian Tour Golf.
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