New Zealand shares rose, paced by Kathmandu after the retailer showed an improvement in second-half trading and said it expects a better performance in 2013. NZX and Contact Energy were among leading gainers.

The NZX 50 index rose 21.38 points, or 0.6 per cent, to 3819.28. Within the index, 31 shares rose, 12 fell and seven were unchanged. Turnover was $167.9 million.

Kathmandu, the outdoor clothing and equipment retailer, rose 2.9 per cent to $1.75 even as the Christchurch-based company posted an 11 per cent decline in full-year profits to $34.9 million. Sales rose 13 per cent to $347 million.

"I don't know if just because you can increase your turnover that is a good result but the market seems to have taken it well," said Paul Vault, investment adviser at Craigs Investment Partners.


Restaurant Brands, which operates the local Pizza Hut, KFC and Starbucks brands, rose 0.5 per cent to $2.20. Its second-quarter sales rose 2.3 per cent to $96.1 million in the 16 weeks ended September10, led by an increase in Pizza Hut and KFC revenue.

Contact Energy, the country's biggest listed electricity generator, gained 2.1 per cent to $5.29.

"It has been a bit out of favour of late but their operational data was better and the delay in Mighty River Power has seen people return to the stock," said Vault.

Telecom, New Zealand's largest listed company, rose 0.9 per cent to $2.33 after it shed its dividend of 11c a share. The telecommunications company also named Chris Quin as chief executive of its retail unit, effective October 1.

Port of Tauranga, the nation's busiest port, gained 2 per cent to $12.95, the stock having climbed about 30 per cent this year. It shed its final dividend of 27c apiece yesterday.

The gainers were led by the NZX, the stock exchange regulator, up 2.7 per cent to $1.13.

The decline was led by NZ Refining, which fell 3.5 per cent to $2.74, and Heartland New Zealand, the lender formed from the merger of Pyne Gould's Marac Finance with the Canterbury and Southern Cross building societies, down 1.6 per cent from its 11 month high to 62c.

Mainfreight, the biggest road transport company listed on the NZX 50 index, dropped 1.2 per cent from its 13-month high to $10.50. The stock has risen about 6.1 per cent this year.

Tech stock Diligent Board Member Services fell 0.3 per cent to $3.84, while Trade Me, the online auction site controlled by Fairfax Media, slipped 0.8 per cent to $3.99.

Ryman Healthcare, New Zealand's largest retirement village operator, fell 0.8 per cent to $4.09.