KEY POINTS:
The New Zealand sharemarket started 2009 in positive fashion though trading was thin today.
The benchmark NZSX-50 index closed 29.18 points, or 1.07 per cent higher, at 2744.89 on light turnover of 17.8 million shares worth $35.7m.
Market heavyweight Telecom, which had earlier been 6c ahead, closed on its day low of 229 - unchanged from the closing level last Wednesday. But Contact Energy and Fletcher Building buoyed the index with gains on the day of 10c to 743 and 7c to 581, respectively.
Fisher & Paykel Healthcare put on 9c to 325, while the Appliances stock was flat on 135.
While The Warehouse lost 4c to 348, other retail stocks emerged better from Christmas and New Year shopping, with Pumpkin Patch firming 1c to 96 and Michael Hill 3c adding to 540.
Auckland Airport rose 6c to 168 but Air New Zealand fell the same amount to 90.
With international oil prices rising nearly 2 per cent today after an Iranian military commander reportedly called for an oil boycott over Israel's Gaza offensive, NZ Oil and Gas firmed 1c to 128 but NZ Refining shed 5c to 580.
James Smalley of sharebrokers Hamilton, Hindin, Greene said extremely light volumes indicated some market participants were not back from holidays.
The rise in oil prices had led to a bounce in other commodity prices.
"That set the Aussie market off with a hiss and roar, although it has come off during the day," Mr Smalley told NZPA.
He said the New Zealand sharemarket was looking forward to the Reserve Bank's next official cash rate announcement later in the month, with a 75 basis points cut expected.
"Cuts in interest rates are always positive for the sharemarket and people looking for good dividend yields are attracted back to the market," he said.
With some stocks expected to keep yields in double figures this year, they "looked very attractive" compared to fixed interest rates on offer.
Of the 105 stocks traded overall on the New Zealand exchange today, there were 48 rises and 16 falls.
- NZPA
