Shares in cloud-computing software company Xero hit a new high yesterday despite the NZX 50 index having another day in the red.

Xero shares hit $15.10 in afternoon trading, surpassing the company's previous high of $14.90 at the end of April, eventually closing on $14.99.

James Smalley, director of broker Hamilton Hindin Greene, said Xero was probably doing well because it didn't have a lot of large institutional investors.

"Illiquid stocks and those who do not have a lot of large cap institutional exposure - those are the ones that are holding up," Smalley said.

International investors pulling back into their own markets are thought to be behind much of the share price falls in the New Zealand market of late.

Shane Solly, portfolio manager at Mint Asset Management, said Xero could also be benefiting from a weaker New Zealand dollar versus the US dollar.