Trio lead NZX higher

Photo: File.

New Zealand shares have risen, led by A2 Milk's continued strength along with Kathmandu Holdings on a 2.5 year high and Air New Zealand rising.

The S&P/NZX50 Index gained 44.62 points, or 0.6 per cent, to 7628.57 on Tuesday. Within the index, 30 stocks rose, 12 fell and eight were unchanged. Turnover was $124.5 million.

A2 Milk led the index, up 5 per cent to $4.02. The stock has gained 80 per cent this year as it has found success selling infant formula into China, while its competitors have struggled with that country's regulatory regime.

"It's having a nice run, there have been some broker upgrades with regards to that stock, and there's pretty reasonable volume compared to the rest of the market," said Peter McIntyre, investment adviser at Craigs Investment Partners.

Kathmandu Holdings gained 4.7 per cent to $2.25, a price last seen in December 2014. The stock has gained 10.3 per cent this month, soaring since July 3.

Vista Group International advanced 3.5 per cent to $5.95. The shares climbed after 20th Century Fox Film became the newest studio customer for its Movio unit in what the Kiwi firm sees as proving the value of the analytics business.

"The market has really liked that, it's another good bit of news which has come from that company," Mr McIntyre said.

Air New Zealand rose 2.4 per cent to $3.57 and has gained 59 per cent this year.

"It's continued to have a good run, oil prices have moved to the downside because of oversupply in the market and I think that has given investors confidence they'll stay lower for longer, that's a big part of Air New Zealand's cost structure so we're seeing it very well supported," Mr McIntyre said.

CBL Corp was the worst performer, down 1.2 per cent to $3.30, while Comvita dropped 0.8 per cent to $6.17.


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