Offshore markets drag NZX to new high

Xero, founded by Rod Drury (pictured), saw its shares touch a new high of $18.80 earlier today.

New Zealand's benchmark share market index has hit a new high today.

The NZX50 touched 4675.91 points early this afternoon - the highest point the market has reached since May 13 when it closed on 4671.637.

David Price, head of institutional broking at Forsyth Barr said the New Zealand share market was being dragged up by international markets.

"We have seen the off-shore markets continue a strong run and we are being dragged along with it."

Price said New Zealand had come through its results season without any hiccups although company outlooks remained muted.

"The market is a little bit expensive, but what we did see in the results was below trend earnings."

Price said that could result in some upside surprises.

The market is also preparing for news of what the US Federal Reserve will decide about paring back its money stimulus program.

A tapering announcement is due Thursday morning New Zealand time.

The strong share market was reflected by technology stock Xero which touched a new high of $18.80 earlier today. Its previous high was $18.79 on July 8.

The company, which has yet to make a profit, is valued at over $2.2 billion.

But it was not all good news.

Shares in Mighty River Power touched a new low of $2.16 in morning trade, 1c lower than Friday's closing price and well below its $2.50 issue price.

However by early afternoon the shares had bounced back to $2.19.