Milk firm helps lift index to record high

New Zealand shares rose to a record close, led by a2 Milk Co as Australian investors continued to back growing demand for the milk marketer's infant formula, and as Ryman Healthcare extended its rally from upbeat earnings last week.

The S&P/NZX 50 Index rose 69.1 points, or 1.2 per cent, to 6077.62, outperforming other markets across Asia. Within the index, 41 stocks gained, four declined, and five were unchanged. Turnover was $170.2 million.

A2 Milk led the benchmark index high, jumping 11 per cent to a record close of $1.09. The milk marketer has soared 42 per cent since November 3 as investors grow increasingly bullish about the company's prospects selling infant formula, and has attracted new investors after upgrading earnings guidance last week and with the exit of cornerstone investor Freedom Foods.

"Just last week a number of research analysts bumped up their price targets to between $1 and $1.23, so investors are starting to get pretty bullish on a2," said Grant Williamson, a director at Hamilton Hindin Greene.

Ryman Healthcare rose 3.3 per cent to $7.90, adding to Friday's 2.6 per cent gain after the country's biggest retirement village operator posted a 23 per cent increase in first-half profit.

"Ryman's up on the back of a better than expected six-month report on Friday," Williamson said. "The company continues to grow earnings around 15 per cent per annum, and it's probably time that share price moved up."

Metro Performance Glass climbed 2.7 per cent to $1.54 after the country's biggest glass processor reported first-half profit in line with guidance, and affirmed its forecast for annual earnings.

Other companies to gain on the day included cloud-based accounting software developer Xero, which rose 6.7 per cent to $21.90, MeridianEnergy, up 2.7 per cent to $2.27, and online auction site Trade Me, which gained 2.3 per cent to $3.95.

Goodman Property Trust posted the biggest decline of the day, down 1.2 per cent to $1.22.

Outside the benchmark index, rental campervan operator Tourism Holdings fell 0.9 per cent to $2.28 after forecasting a 10 per cent increase in 2016 profit, while saying it hadn't found any potential acquisitions.

Private training institution Intueri Education Group plunged 31 per cent after it said the Tertiary Education Commission was reviewing funding at two of its schools, which could cut annual earnings by up to $5 million. "There's quite a bit of uncertainty building up in that company," Williamson said.

Evolve Education Group rose 3.1 per cent to 99c after the early childhood education operator said annual earnings were in line with expectations after posting a first-half profit of $8.4 million, and that it had enough headroom for more acquisitions.