New Zealand shares rose yesterday, pushing the NZX 50 Index to a new five-year high, as expectations of a pickup in building activity lifted companies such as Fletcher Building, Steel & Tube Holdings and Cavalier. PGG Wrightson rose to a 17-month high.
The NZX 50 rose 15.54 points, or 0.4 per cent, to 4119.08, the highest since November 2008. Within the index, 27 stocks rose, 19 fell and four were unchanged. Turnover was $103.8 million.
Fletcher Building, the biggest company on the exchange, gained 2.6 per cent to $8.67, the highest since June last year.
The nation's biggest construction and building materials firm has gained amid signs of life returning in the Australian home building market. Figures yesterday showed building approvals across the Tasman in November were up 13.2 per cent from a year earlier.
"There's a lot of expectation of improved residential activity in Australia, which has been a bit rough," said Shane Solly, portfolio manager at Mint Asset Management. Investors were also been drawn to the stock market in search of yield in the face of low returns on offer from fixed income, he said.