New Zealand shares have rallied, pushing the NZX 50 Index to a record high, after Metlifecare’s biggest shareholder said it would exit its stake.

The NZX 50 rose 43.966 points, or 0.9 per cent, to 4802.557 on Monday. Within the index, 37 stocks rose, four fell and nine were unchanged. Turnover was $133 million.

Metlifecare jumped 7.8 per cent to $3.60 after Australia’s Retirement Villages Group, the biggest shareholder, said it has hired Goldman Sachs to sell its 37.7 per cent stake.

“It has been seen as an overhang in the market,” said James Smalley, a director at Hamilton Hindin Greene.

“Now that the news is finally out there the market is seeing it as very positive and it improves liquidity.”

A single buyer for the shares would also trigger a takeover, he said.

Rival retirement village operator Ryman Healthcare gained 3.9 per cent to a record close of $7.27, though Summerset Group dropped 1.3 per cent to $3.15.

Mr Smalley noted that while the NZX 50, a gross index, was at a record level, the capital index was only at its highest in about five years and would need to surge further to reach its highs of 2007.

Mighty River Power climbed 2.8 per cent to $2.23 after Meridian Energy closed the retail segment of its share offer, removing the need for those investors to sell existing holdings in the sector to raise funds.

Mr Smalley said there is also talk that Meridian stock has been in demand “and that has rubbed off on MRP”.

Contact Energy rose 1.9 per cent to $5.25 and lines company Vector gained 1.2 per cent to $2.61.

Diligent Board Member Services extended its recovery, gaining 6.7 per cent to $4.80 while Xero halted its recent surge, falling 1.9 per cent to $26.50.