New Zealand shares rose, with the benchmark index surpassing 8,000 for the first time, led higher by export-orientated, investor favourites A2 Milk Co and Xero.
The S&P/NZX 50 Index gained 32.94 points, or 0.4 per cent, to 8,010.28. Within the index, 23 stocks gained, 17 fell and 10 were unchanged. Turnover was $171.2 million.
Mark Lister, head of private wealth research at Craigs Investment Partners, said the local market's strength came despite the official election results released on Saturday, which showed the incumbent National Party lose two seats while Labour and the Greens picked up one each, making the likely outcome of coalition negotiations with New Zealand First less clear-cut.
"You've arguably seen a bit of weakness in the currency as a result of the political uncertainty, although a big factor has been what's happening overseas driving other currencies up, but the sharemarket is showing few signs of political nervousness," Lister said. "People are waiting for a bit of clarity on policy change. There is definitely a few sectors which will be watching that with interest - people are thinking about what changes to migration could mean for some industries and other potential changes which could impact the housing market. It is a little on the quiet side, you're still in school holidays, but it really is stock-specific stories that continue to drive the market."
Stocks already riding positive sentiment extended their gains, Lister said. A2 Milk was once again the best performer, up 2.8 per cent to a record $7.36, meaning the stock has now risen 236 per cent in the year. Xero, which has gained 80 per cent this year, advanced 2.1 per cent to $32.16 today. Both stocks generate most of their revenue overseas and are beneficiaries of a weaker currency.
