Shares in Xero have jumped 24 per cent in the past week, amid speculation a large seller has left the market.
The stock climbed as much as $4 to an intraday high of $20.40 yesterday, the highest since October, before eventually closing up 35c at $20.05, compared with last Monday's closing price of $16.40.
Shares in the cloud-based accounting software firm came under selling pressure last year, falling from a high of $45.99 in March to as low as $15 last October as investors considered the outlook for growth, particularly in the US, while the escrow period ended for its 2013 capital raising, which saw it book $180 million from investors.
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Last week's sudden climb in the share price saw the stock market operator and regulator issue a "please explain" notice asking Xero to confirm it was disclosing all material information that might be behind the gain. Xero confirmed it was, without giving any further explanation.