New Zealand shares rose, pushing the S&P/NZX 50 Index to the highest in more than two months, as the rebound in dairy prices, relatively low NZ dollar and rising house prices lifted sentiment for the economic outlook. Heartland New Zealand, Fonterra Shareholders' Fund and Summerset Group gained.
The S&P/NZX 50 Index rose 14.82 points, or 0.3 per cent, to 5834.83. Within the index, 35 stocks rose, six fell and nine were unchanged. Turnover was $123 million.
Dairy prices have climbed about 63 per cent from their low of early August, based on the GlobalDairyTrade price index, and traders will be watching this week's auction for any signs the rally is running out of puff.
The kiwi is trading near a four-month high at US68.11c, but is down about 23 per cent from its highs of November 2014, when it touched US88.35c, easing the pressure on exporters bringing home their overseas sales and helping tourism.
Fonterra Shareholders' Fund units rose 0.9 per cent to $5.40 and have climbed from as low as $4.58 in June. A2 Milk, which markets milk with a protein variant said to have health benefits, was unchanged at 77c and has gained from 46c in February. Synlait Milk was unchanged at $2.40, up from $2.04 in late August.