New Zealand stocks have risen amid polls showing a regulation-prone Labour-Greens coalition won’t win power in September.
The NZX 50 Index rose 12.077 points, or 0.2 per cent, to 5130.695 on Tuesday. Within the index, 25 stocks rose, 14 fell and 11 were unchanged. Turnover was $123.6 million.
Opinion polls are projecting a third term for the National Party after the general election.
A major policy of the Labour and Greens opposition is to reform the industry, creating a single wholesale electricity buyer to reduce retail energy prices.
Mighty River Power rose 0.9 per cent to $2.145, Contact Energy advanced 1.3 per cent to $5.29 and Meridian Energy climbed 0.5 per cent to $1.115.
“Investors are pricing in a brighter outlook for the electricity policy landscape on the back of a seemingly stronger National Party in terms of polling,” said Mark Lister, head of private wealth research at Craigs Investment Partners.
“They all offer quite attractive dividend yields as well, so they’re still seen by investors as a good place to be if you’re looking for yield.”
Kathmandu rose 0.8 per cent to $3.65. The outdoor goods retailer reported a rise in first-half profit on Monday, even as it contended with an unfavourably strong New Zealand dollar against its trans-Tasman counterpart, which makes up two-thirds of its earnings.
“You look across the retail landscape and it looks pretty tough out there for most operators, but Kathmandu seems to be able to buck the trend,” Mr Lister said.
Pacific Edge, the non-invasive bladder cancer test developer, rose 2.1 per cent to $1.49.