WELLINGTON (Dow Jones)--New Zealand shares ended slightly higher Thursday, overlooking a negative cue from Wall Street after the Reserve Bank of New Zealand raised its policy interest rate by 25 basis points to 2.75%, its first move in more than a year. The benchmark NZX-50 ended up 0.1%, or 2.2 points, at 3002.33. RBNZ Governor Alan Bollard said he has opted to begin removing monetary policy stimulus given New Zealand's economic recovery. "The recovery is broad-based enough to be reasonably confident about it," he said. "We don't see it as the fragile first step out of recession," he said. Forsyth Barr broker Suzanne Kinnaird said the decision has lent a positive tone to the market. "This has been taken positively by the business community. It is a good sign that the economy can sustain an interest-rate hike," she said. Bellwether Telecom Corp. of New Zealand ended 3.3% higher at NZ$1.87 on the better sentiment and some bargain hunting after the stock reached a fresh all-time low Wednesday. The already-battered stock had come under renewed pressure previously after saying last month it may consider a structural separation of its retail and network arms so that it can participate in the government's planned development of the national high-speed fiber optic network. New Zealand Oil and Gas added 3.7% to NZ$1.41. Earlier Thursday, the company said hydrocarbons have been found at its Tui SW-2 Well offshore from Taranaki on the west coast of North Island, which is thought to have 5 million barrels of recoverable oil in it. NZOG has a 12.5% interest in the well operated by AWE Ltd, which has a 42.5% stake. Mitsui E&P Australia Pty Ltd., a unit of Mitsui & Co Ltd., holds 35% while Pan Pacific Petroleum has a 10% stake. Dual-listed Pan Pacific added 12% to NZ$0.28. In the other direction, medical devices maker Fisher & Paykel Healthcare shed 0.3% to NZ$3.20, hurt by the higher New Zealand dollar, which ticked up after the rate hike. Retailers fared better in the session after data from Statistics New Zealand showed that spending on debit and credit cards rose in May compared to April. Outdoor clothing retailer Kathmandu ended up 1.1% at NZ$1.85, while children's clothing retailer Pumpkin Patch added 0.5% to NZ$2.05. Kinnaird said the market would remain closely focused on offshore markets for direction. "Any big moves either way will be reflected in our market tomorrow," she said. By Rebecca Howard, Dow Jones Newswires; 64-4-471-5990; rebecca.howard@dowjones.com

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