New Zealand shares rose as A2 Milk Co surged on its tie-up with Fonterra Cooperative Group, while Synlait Milk, Fletcher Building and Spark New Zealand dropped.
The S&P/NZX 50 Index rose 102 points, or 1.3 per cent, to 8,200.27. Within the index, 22 stocks rose, 21 fell and seven were unchanged. Turnover was $272.9 million.
A2 shot up 26.5 per cent to a record $11.75 today, dragging the index with it after reporting a record first-half result and a new deal with Fonterra. The company announced it had more than doubled first-half profit to $98.5m on strong infant formula sales as sales climbed 70 per cent to $434.6m.
The milk marketing firm used its first-half result to unveil a strategic partnership with Fonterra, which will exclusively supply a2 with A1 protein-free milk products in bulk powder and consumer packaged forms, in exchange for an exclusive license to produce, sell and market a2 branded fresh milk for the New Zealand market. The two companies will establish an A1 protein-free milk pool in New Zealand and a new A1 protein-free milk pool in Australia.
"The result was clearly a lot ahead of market expectations, winning market share in China and diversification of supply with Fonterra is also positive," said Craig Stent, head of equities at Harbour Asset Management.