New Zealand shares rose to a three-month high on speculation earnings season will show companies are making some headway in a subdued economy.
The benchmark NZX 50 Index rose 21.61 points, or 0.6 per cent, to 3584.81, the highest since May 2.
Within the index, 27 stocks rose, seven fell and 16 were unchanged. Turnover was $73.7 million.
New Zealand's listed companies will lift normalised per-share earnings by a median 6.1 per cent, based on Forsyth Barr's forecasts for 43 companies that it follows.
"The optimism is partly generated by the fact that people are investing in the stock market for income," said Greg Easton, investment advisor at Craigs Investment Partners.
"Companies in the real economy are doing OK - those in charge of their own destiny."
Kathmandu, the outdoor clothing and equipment manufacturer, rose 3.1 per cent to $1.65 and clothing retailer Hallenstein Glasson Holdings gained 1.9 per cent to $4.26.
Fletcher Building, New Zealand largest construction company, rose 1.1 per cent to a new one-month high of $6.34.
Chorus, New Zealand's largest fixed-line telecommunications network company since its demerger from Telecom last year, rose 1.6 per cent to a three-week high of $3.12.
Telecom, which is the largest company on the exchange, was up 0.7 per cent to $2.73, its highest close since August 2008. The stock has risen 29 per cent this year.
Air New Zealand, the airline marked for government sell-down, gained 1.7 per cent to 91 cents.
Declining stocks were led by Goodman Fielder, the food ingredients manufacturer, down 3.2 per cent to 61 cents. NZX, the stock exchange operator, fell 2.5 per cent to $1.15.