New Zealand shares rose as Fletcher Building gained from a two-and-a-half-year low on perceptions the construction company has been overly punished given the prospects of economic growth.
The NZX 50 Index rose 8.51 points, or 0.3 per cent, to 3236.52. Within the index, 30 stocks rose, 11 fell and nine were unchanged. Turnover was $59 million.
Fletcher, which has the government mandate to oversee the reconstruction of Christchurch, has declined amid speculation the swarm of earthquakes on December 23 mean further delays to the rebuilding work.
Economists are expecting the rebuild to gain momentum from the middle of the year in a boost to both Fletcher and the economy.
"A strong local economy is always on the horizon," said Bryon Burke, head dealer at Craigs Investment Partners.
"There has been a recovery from Fletcher's sell-off yesterday.
"Trading volumes remain light with the holiday season still in full swing - with the backdrop being Europe's woes," Mr Burke said.
OceanaGold, which operates the Macraes gold field, rose 3 per cent to $3.09 as resource stocks gained in Australia and spot gold edged higher.
The S&P/ASX 200 Index rose 0.8 per cent in afternoon trading.
On the NZX 50, AMP climbed 4.1 per cent to $5.60, Westpac rose about 3 per cent to $26.95 and ANZ Bank rose 1.7 per cent to $27.48.
Goodman Fielder, the Australasian food manufacturer, gained 3.9 per cent to 54 cents.
Jewellery chain Michael Hill International was unchanged at 87 cents.
The company said today that retailing "has been challenging in our largest market, Australia, which experienced a small drop in same store sales for the period".
That eroded margins in the second quarter and will "adversely impact on profits for the half year".
NZN