Record high for NZX sharemarket

Shares in accounting software firm Xero jumped 6.73 per cent to $21.90. Photo / Supplied

New Zealand shares rose to a new record close, led by a2 Milk Co as Australian investors continued to back growing demand for the milk marketer's infant formula, with Ryman Healthcare and Xero adding to this growth.

"The market feels a lot more comfortable generally," Craigs Investment Partners Mark Lister said.

"The US market last week had its best week in more than a year, and of the last eight weeks, seven have been up weeks so its been a very strong rebound that we've seen from most markets around the world."

The S&P/NZX 50 index rose 69.1 points, or 1.2 per cent, to 6,077.62, outperforming other markets across Asia. Within the index, 41 stocks gained, four declined, and five were unchanged. Turnover was $170.2 million.

A2 Milk led the benchmark index high, jumping 11 per cent to a record close of $1.09. The milk marketer has soared 42 per cent since November 3 as investors grow increasingly bullish about the company's prospects selling infant formula, and has attracted new investors after upgrading earnings guidance last week and with the exit of cornerstone investor Freedom Foods.

"Just last week a number of research analysts bumped up their price targets to between $1 and $1.23, so investors are starting to get pretty bullish on a2", said Grant Williamson, a director at Hamilton Hindin Greene in Christchurch.

Shares in accounting software firm Xero jumped 6.73 per cent to $21.90, with Lister saying the company had been performing well of late.

"As far as Xero goes, it's had a very good string of gains lately," Lister said. "It got as low as around the $14 mark at one point and so it's been a very good performer in the last few months."

"It's always been a good company but it polarises people in terms of the investment view that people have of it. It's a high risk, high return stock that is difficult to value and difficult to pinpoint what its worth and its been much more volatile than just about everything else over the last few years," he said.

Ryman Healthcare rose 3.3 percent to $7.90, adding to Friday's 2.6 percent gain after the country's biggest retirement village operator posted a 23 percent increase in first-half profit.

"Ryman's up on the back of a better than expected six-month report on Friday," Williamson said. "The company continues to grow earnings around 15 percent per annum, and it's probably time that share price moved up."

Metro Performance Glass climbed 2.7 percent to $1.54 after the country's biggest glass processor reported first-half profit in line with guidance, and affirmed its forecast for annual earnings.

Other companies to gain on the day included cloud-based accounting software developer Xero, which rose 6.7 percent to $21.90, Meridian Energy, up 2.7 percent to $2.27, and online auction site Trade Me, which gained 2.3 percent to $3.95.

Goodman Property Trust was the biggest decliner on the day, down 1.2 percent to $1.22.
Outside the benchmark index, rental campervan operator Tourism Holdings fell 0.9 percent to $2.28 after forecasting a 10 percent increase in 2016 profit, while saying it hadn't found any potential acquisitions.

Private training institution Intueri Education Group plunged 31 percent after it said the Tertiary Education Commission was reviewing funding at two of its schools, which could cut annual earnings by up to $5 million.

"There's quite a bit of uncertainty building up in that company," Williamson said. "It's a bit of a disaster for shareholders."

Evolve Education Group rose 3.1 percent to 99 cents after the early childhood education operator said annual earnings were in line with expectations after posting a first-half profit of $8.4 million, and that it had enough headroom for more acquisitions.

- Additional reporting BusinessDesk