Gordon said reweighting is not driven by market sentiment, although global investors have found confidence in central banks' efforts to shore up the financial system and are beginning to see attractive prices stocks that have been aggressively sold.
"Markets are oversold short term and have bounced on fiscal support and stimulus," he said.
The local benchmark has gained 15.3 per cent since its recent low on March 23, although still down 14.8 per cent this quarter. Mark Lister of Craig's Investment Partners said this is the index's biggest quarterly decline in its 20-year history, surpassing the 14.1 per cent fall in the three months to the end of December 2008.
Utility software firm Gentrack led the market higher today, surging 40 per cent to $1.40 as it came off a record low 76 cents earlier this month. The company today affirmed earnings guidance for the March period and lifted the trading ban for company directors and executives that's typically in place until a company formally reports.
Greg Smith, head of research at Fat Prophets said investors may be relieved about any announcement better than a downgrade.
"A lot of companies are pulling guidance in the current environment, so anyone that can maintain it will be well received," he said.
Australia & New Zealand Banking Group climbed 10.4 per cent to $18.00 and Westpac Banking Corp increased 8.1 per cent to $17.20. Gordon said this was due in part to central banks shoring up capital markets.
"The longer this shutdown goes on, the more bad debt there will be for banks. But at the moment I think central banks are giving a bounce in confidence," he said.
Refining NZ rose 13 per cent to 78 cents. The virus shutdown has pushed oil prices to an 18-year low which has created attractive margins for the refiner, although fuel demand remains muted.
Fuel-retailer Z Energy, which owns a stake in the refinery, gained 5.5 per cent to $2.89.
Genesis Energy rose 4.4 per cent to $2.515, Meridian Energy advanced 0.3 per cent to $4.04, Contact Energy increased 2.1 per cent to $5.76. Mercury NZ fell 0.5 per cent to $4.22.
Gordon said an announcement earlier today that the aluminium smelter at Tiwai Point was closing one pot line could be a hint the smelter saw a long-term future operating in the country.
Exporters continued to benefit from a weak kiwi dollar, hovering around 60 US cents. Synlait Milk rose 7.8 per cent to $6.20, Skellerup Holdings increased 7.9 per cent to $1.78 and Scales Corporation advanced 4.2 per cent to $4.45.
Fisher & Paykel Healthcare rose 0.1 per cent to $30.38, having reached a record $32.22 in earlier trading.
Some retailers rallied after the Ministry of Business, Innovation and Employment yesterday included heaters, computers and whiteware as essential goods.
Warehouse Group shares climbed 5.3 per cent to $2 after the retailer said it will offer a limited range of products and services online and through call centres. Smiths City was up 10 per cent at 11 cents and Briscoe Group rose 2.9 per cent to $2.84.
Trading in Kathmandu Holdings was halted until the retailer makes a material announcement. The shares had increased 9.8 per cent to $1.12 before the halt.
NZX Limited rose 1.8 per cent to $1.11. The securities exchange operator held its annual general meeting today where it announced it will separate its regulatory functions from its commercial operations.
Air New Zealand fell 5.6 per cent to 85 cents. Chief executive Greg Foran said previous revenue of $5.8b would dry up to be around $500m annually as the company becomes a domestic airline with limited international services.
Auckland International Airport fell 4.8 per cent to $4.99 and Tourism Holdings rose 0.9 per cent to $1.09.
