New Zealand shares rose on Friday, nudging the NZX 50 Index to a new record.
Investors continued to bid up the future earnings potential of Diligent Board Member Services and Xero. Sky Network Television continued its run unfettered by News Corp.
The NZX 50 rose 9.72 points, or 0.2 per cent, to 4548.71, continuing the ascent of the gross index created in 2003. Within the index, 24 stocks rose, 18 fell and eight were unchanged. Turnover was $116 million.
Xero rose 6.2 per cent to $13.80, the second-highest price on the NZX 50 after Port of Tauranga, valuing the company at $1.62 billion. Xero is up 15 per cent in the week. Diligent, which has attempted to clean up discrepancies in its chief executive’s options, gained 5.3 per cent to $7.50 – a 12-month gain of 103 per cent.
“I’d be exceptionally wary at these levels as a fundamentals-based investor,” said Matt Goodson, portfolio manager at BT Funds Management. “They’re clearly pricing in many years of growth.”
The NZX 50 rose even as major stocks Fletcher Building, Telecom and Contact Energy fell.
Fletcher shed 0.6 per cent to $8.66, Telecom fell 1.7 per cent to $2.565 and Contact declined 0.6 per cent to $5.35. The index is up 11.6 per cent this year.
OceanaGold, one of the most volatile stocks in the index, rose 9.6 per cent to $2.62. Gold rose US$7.30 an ounce at US$1474.29 in Asian trading.
Sky TV rose 2.2 per cent to $5.58 and is up 11 per cent year-to-date.
Delegat’s Group was unchanged at $3.78 after the winemaker said it had bought the assets of Australia’s Barossa Valley Estate out of receivership for A$24.7 million.
Ryman Healthcare advanced 0.9 per cent to $5.73.
Shares in alternative milk marketer A2 Corp jumped 7.9 per cent to 68 cents after government figures showed China was now New Zealand’s biggest export destination, ousting Australia. A2 this week announced the start of sales in the world’s most populous nation.