NZX 50 Index Rises Despite Rising Bond Yields

New Zealand's S&P/NZX 50 index rose for a second week due to a weaker kiwi, which helped exporters like Sanford offset the impact of rising bond yields and interest rates.

Rising oil prices have led to inflation concerns, prompting the Reserve Bank to consider hiking interest rates. This has affected rate-sensitive stocks, with commercial landlord Precinct Properties NZ falling to its lowest level in over 14 years after dropping 8% in the biggest weekly decline since March 2020.

Serko posted the largest gain of the week at 11%, while Vulcan Steel advanced 10% and Sanford rose 8.9%. In contrast, rate-sensitive stocks like Gentrack slid 8.4% and Vista Group International declined 5.2% due to falling tech valuations.

The kiwi dollar traded at 56.53 US cents on Friday, down from 56.75 cents the previous day, and was heading for a weekly decline of 1.1%. The yield on New Zealand's 10-year government bonds rose to its highest level since November 2023, causing rate-sensitive stocks to drop.