The prospect of rate cuts drive market higher; Maccas helps the rally
The S&P/NZX 50 Index rose 104.44 points, or 1.1 percent, to a record 9,958.35, outperforming other Asian benchmarks. Within the index, 41 stocks gained, eight fell, and one was unchanged. Turnover was $137.3 million.
The benchmark index has been treading in uncharted territory, getting a leg up last week when the Reserve Bank signalled it expects to cut the record-low 1.75 percent official cash rate due to the slowing global and domestic economies.
While that surprised some analysts at the time, a survey today showing souring business confidence cemented expectations among most economists that the OCR will fall sooner rather than later.
"The Reserve Bank announcement of last week has really created some pretty strong buying in the marketplace," said Grant Williamson, a director at Hamilton Hindin Greene.
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