The sharemarket started slowly but gained life mid-session yesterday to end more than 1 per cent higher.
Following a flat, lacklustre start, it delivered later, said David Price of Credit Suisse First Boston. "There were no leads from offshore but there was buying from offshore driving the market.
"Telecom is regathering quite
a bit of its lost gloss, rising 19c to 764 today. AAPT has won an outsourcing contract from CBA which is seen as a positive."
The Warehouse finished up 10c at 570 on reasonably healthy volume. "There was a broker seminar in Australia on Monday which was received very positively."
Of the improved market sentiment Mr Price said: "I think people are hopeful there will be no further rate increases and a lot of the market is still reasonably cheap.
"It has still got a way to go. There are still many stocks that have a lot of value left in them."
The benchmark NZSE-40 capital index closed ahead 23.60 points, or 1.12 per cent, at 2139.53 on moderate total turnover value of $85.5 million, of which Telecom accounted for $18 million and Fletcher Energy $11.8 million.
Gainers outpaced losers by 56 to 47 among the 158 stocks traded.
Carter Holt Harvey was steady at 187, and Contact Energy added 2c to 292. Trading in Fletcher Challenge stocks was mixed, with Building up 2c at 244 while Energy shed 8c to 756 and Forests 1c to 85. Paper was steady at 247.
Brierley Investments, which led volume on 4.18 million shares, grew 3c to 40.
On Monday the investment company said it had lifted its stake in Singapore food and beverage group Fraser & Neave to 6.9 per cent.
Lion Nathan improved 2c to 490, and Auckland Airport 3c to 268.
Strong gains were made by INL, up 20c to 400, and Sky TV 15c to 400.
Baycorp expanded 14c to $11.95 .
Smaller companies were a tad softer with their capital index off 4.84 points, or 0.09 of a per cent, at 5211.55.
- NZPA
