Energy companies push New Zealand stocks higher
WELLINGTON, New Zealand (AP) — Trading in energy companies pushed New Zealand’s stock market higher Monday following an election victory for Prime Minister John Key.
In early trading on the first day markets were open following Saturday’s general election, the benchmark NZX 50 index was up 1.3 percent. Energy companies Mighty River Power, Trustpower and Meridian Energy all posted gains of more than 5 percent.
The New Zealand dollar also edged up 0.3 percent to trade at $0.815.
The losing Labour Party had promised to intervene in the energy market with a new government agency. The policy was aimed at lowering prices for consumers, but would likely also have lowered the valuations of power companies.
Key’s center-right National Party won 48 percent of the vote in provisional results, an emphatic victory that will see it return for a third term in office.
It was a disastrous night for the liberal Labour Party, which won just 25 percent of the vote, its worst result in more than 90 years.