New Zealand shares rose as Fletcher Building climbed to a four-month high on speculation its earnings will recover from their current slump as the rebuild of Christchurch drives construction activity.
The NZX 50 Index rose 21.39 points, or 0.6 per cent, to 3348.13. Within the index, 27 stocks rose, 14 fell and nine were unchanged. Turnover was $123 million, the third session in a row that turnover has been the highest this year.
Fletcher, the biggest company on the bourse and the construction company with the government mandate to oversee the rebuilding of Christchurch, rose 2.3 per cent to $6.73.
Fletcher has already flagged a 10 per cent decline in first-half earnings and a flat full-year result.
'Fletcher Building is coming under some demand ahead of their result,' said Grant Williamson, director at Hamilton, Hindin, Greene.
'Investors are starting to wake up to the fact that the Christchurch rebuild will happen.'
Contact Energy rose 2.7 per cent to $4.94, leading gainers on the NZX 50.
Pumpkin Patch rose 2.5 per cent to 83 cents and outdoor equipment chain Kathmandu gained 1.7 per cent to $1.76.
Warehouse Group, the biggest retailer on the bourse, fell 1.1 per cent to $2.68.
Burger Fuel Worldwide, the local fast-food chain targeting growth in the Middle East, rose 11 per cent to 70 cents after announcing it had signed a master license agreement to roll out stores in Qatar.
New Image, which makes colostrum-based health tonics, tumbled 26 per cent to 14 cents. The company made a loss in the first half after Malaysian pharmacies and retailers discounted the manufacturer's drink powders, eroding sales.
Online auction site Trade Me rose 1 per cent to $3.07 after the NZX said it will replace tapmaker Methven in the NZX 50 Index from February 20. Methven fell 2.9 per cent to $1.02.
