NZ shares hit six-month high, A2 Milk still in favour

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New Zealand shares rose to their highest level since early October, as A2 Milk's bull run continued and the market shrugged off Asian jitters ahead of a potentially tense meeting between US President Donald Trump and his Chinese counterpart Xi Jinping that starts Thursday.

The S&P/NZX 50 index increased 24 points, or 0.4 per cent, to 7,289.53. Within the index, 22 stocks gained, 10 fell and 18 were unchanged. Turnover was $175 million.

Suzanne Kinnaird, an investment adviser for Forsyth Barr Dunedin, said while "you never know what Trump might tweet" the New Zealand market isn't following other Asian markets down as investors continue to show keen interest in some key stocks.

A2 Milk "has some solid momentum and is continuing to find favour," she said. The stock rose 3.3 per cent to $3.17, continuing to tick higher after what seemed to be a relaxation by Chinese authorities on imports via the so-called 'grey channel' or daigou last month.

Tegel Group rose 2.7 per cent to $1.16 after it told investors and analysts at the Credit Suisse / First NZ Capital Food and Beverage Conference in Sydney it is well-positioned for export growth and reiterated its full year guidance.

Z Energy added 1.3 per cent to $7.29. The company reversed its decision to dump physical annual meetings in favour of cheaper virtual ones and will instead hold a hybrid of the two after lobbying from the New Zealand Shareholders' Association. In a letter to NZSA chairman John Hawkins and chief executive Michael Midgley, Z chair Peter Griffiths said the company had taken the investor lobby's views on board and will hold its June meeting at its Wellington office, letting shareholders participate online but also allowing attendance in person.

Summerset added 0.9 per cent to $5.40 as investors remained cheered after the company said Wednesday it had increased sales of occupation rights at its retirement villages by 41 per cent in the first quarter and said the remainder of the year "looks positive".

Kinnaird said Summerset was faring well, considering retirement village operator Oceania Healthcare has said it planned to raise $200m in a much-anticipated initial public offering in order to cut its debt and potentially buy new development sites and will list on the NZX and ASX. "You would think you would see a bit of rotation by some," she said.

In the other direction, Manuka honey company Comvita shed 4.2 per cent to $6.80. Kinnaird noted the stock bounced on the relaxation by Chinese authorities "but since then they have come back out and said things are worse than we thought." On Wednesday Comvita warned it will post an operational loss this year due to weaker than expected trading and as a poor season dents the honey harvest in New Zealand.

Xero shed 0.5 per cent to $19.90. Interests associated with tech billionaire Peter Thiel sold about 1.1 million shares in Xero, reducing its overall holding to below 5 per cent, according to a statement on the NZX.

Among small caps, Scott Technologies gained 1.8 per cent to $2.85. This week the company posted a 48 per cent jump in first-half profit and chief executive Chris Hopkins says a global drive for increased automation means the industrial robotics firm is in a "sweet spot".