NZ shares push NZX to a two-month high

New Zealand shares rose, pushing the NZX 50 Index to a two-month high, with volumes dominated by Telecom after the government named a regulator seen as more benign and a US fund lifted its stake in the biggest company on the exchange.

The NZX 50 Index rose 38.48 points, or 1.1 per cent, to 3483.11. Within the index, 38 stocks rose, four fell and eight were unchanged.

Turnover was about $122 million, with Telecom alone accounting for $66 million of that.

Telecom gained 2.7 per cent to $2.49. Communications Minister Amy Adams on Wednesday named Stephen Gale as telecommunications commissioner, passing over incumbent Ross Patterson by appointing one of his deputies to the role.

Separately, funds associated with BlackRock Investment Management lifted their stake to 6.05 per cent from 5.03 per cent.

Fletcher, the biggest construction company on the NZX 50, rose for a second day after Australia's home-building approvals jumped a record 27.3 per cent in May.

The stock closed the day up about 1 per cent to $6.26, its highest since June 20.

"Australia's housing data was positive and we saw good housing data out of the US," said Mark Lister, head of private wealth research at Craigs Investment Partners.

The gains were led by OceanaGold Corp, rising 13 per cent to $2.59.

PGG Wrightson closed the day down 3.2 per cent to 30 cents.

The decline comes after the price of dairy products fell 5.9 per cent in the latest GlobalDairyTrade auction, mirroring a broader decline in New Zealand's primary sector exports in the face of doubts about the strength of the world's economic recovery.

NZX, the exchange operator, was unchanged at $1.34 after the value of trading in its cash markets fell 11.2 per cent in June from a year earlier, the sixth monthly decline.

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