NZX50 cracks 8,000, led by market darlings A2, Xero

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New Zealand shares rose, with the benchmark index surpassing 8,000 for the first time, led higher by export-orientated, investor favourites A2 Milk Co and Xero.

The S&P/NZX 50 Index gained 32.94 points, or 0.4 per cent, to 8,010.28. Within the index, 23 stocks gained, 17 fell and 10 were unchanged. Turnover was $171.2 million.

Mark Lister, head of private wealth research at Craigs Investment Partners, said the local market's strength came despite the official election results released on Saturday, which showed the incumbent National Party lose two seats while Labour and the Greens picked up one each, making the likely outcome of coalition negotiations with New Zealand First less clear-cut.

"You've arguably seen a bit of weakness in the currency as a result of the political uncertainty, although a big factor has been what's happening overseas driving other currencies up, but the sharemarket is showing few signs of political nervousness," Lister said. "People are waiting for a bit of clarity on policy change. There is definitely a few sectors which will be watching that with interest - people are thinking about what changes to migration could mean for some industries and other potential changes which could impact the housing market. It is a little on the quiet side, you're still in school holidays, but it really is stock-specific stories that continue to drive the market."

Stocks already riding positive sentiment extended their gains, Lister said. A2 Milk was once again the best performer, up 2.8 per cent to a record $7.36, meaning the stock has now risen 236 per cent in the year. Xero, which has gained 80 per cent this year, advanced 2.1 per cent to $32.16 today. Both stocks generate most of their revenue overseas and are beneficiaries of a weaker currency.

Genesis Energy was the worst performer, down 2.3 per cent to $2.33, while Summerset Group Holdings fell 1.7 per cent to $5.16.

Auckland International Airport dropped 0.7 per cent to $6.205. It plans to sell up to $100m of six-year bonds, replacing a note set to mature next week. A $100m bond matures on October 17, paying annual of 5.47 per cent and is currently trading at a yield of 2.5 per cent. The new offer is for $75m with up to $25m in oversubscriptions, maturing in April 2023. The airport also announced former Meridian Energy chief Mark Binns will join the board next year.

Fletcher Building rose 1.7 per cent to $7.88. Research and brokerage First NZ Capital put out a note today saying the company could unlock as much as $100m of operating earnings if it can return to the performance it produced in its core businesses before the 2008 financial crisis over the next three-to-four years.

Outside the benchmark index, Michael Hill International rose 3.4 per cent to $1.22. The jewellery retailer lifted sales 7.8 per cent in the first quarter as its performance in New Zealand, Australia, and Canada continued to improve, making up for a dip in US revenue.

Group sales from all stores rose to A$130.3m (NZ$143m) in the three months to September 30, from A$120.9m in the same quarter in 2016. Same-store sales grew 3.5 per cent to A$122.7m in the three months.

New Zealand Oil & Gas gained 0.7 per cent to 75 cents. OG Oil & Gas has sweetened its partial takeover bid for NZOG, winning over the Kiwi energy explorer's independent directors. The oil and gas division of Ofer Global Group will pay 78 cents per share to lift its NZOG stake to a maximum of 70 per cent.

That's up from the 77 cents per share bid OGOG initially floated, and still trumps the 72 cents per share offer by rival Zeta Resources. The new OGOG bid won over NZOG's independent directors who unanimously recommend shareholders accept the revised offer.