Synlait continues record run to lift NZ shares

The S&P/NZX50 index gained 16.78 points, or 0.2 per cent, to 7930.4.

New Zealand shares gained today, led by Synlait Milk and Restaurant Brands, each on record highs.

Meanwhile, A2 Milk was the worst performer as investors took profits from the stock's meteoric gains.

The S&P/NZX50 index gained 16.78 points, or 0.2 per cent, to 7930.4. Within the index, 29 stocks rose, 12 fell and nine were unchanged. Turnover was $227 million.

Synlait Milk was the best performer for the second day in a row, up 6.1 per cent to a record $6.63.

On Thursday, Synlait announced it had received manufacturer registration for A2 Milk's Chinese label infant formula, meaning the products will continue to have market access in 2018 when China tightens its regulations.

A2 Milk led the index lower, down 1.7 per cent to $6.43, having reached a record $6.54 on Thursday.

Grant Williamson, director at Hamilton Hindin Greene, said Synlait had caught investors' imaginations and was going from strength to strength, while A2 - which is the best performing stock on the index, up 207 per cent this year - was taking a breather.

"It gained over the first four days of the week but we are now starting to see some profit taking, which is a little bit overdue as it's had such a fantastic run," Williamson said.

He noted that the 7.3 per cent gains made by A2 this week had helped drive the NZX50's 1.5 per cent weekly gain, with the company now worth $4.7 billion, meaning its movements have a strong effect on the index.

Restaurant Brands, which has gained 30.9 per cent this year, had another strong day, up 2.6 per cent to a record $6.82.

Figures released showed its sales in the first half of the year were up 51 per cent to $386.1m, after the fast-food operator expanded its footprint through Australia and Hawaii.

Xero gained 2.5 per cent to $30.90, Property for Industry rose 2.1 per cent to $1.69 and CBL Corp gained 2 per cent to $3.14.