A2 rose 5 per cent to $10.50 after saying China's current e-commerce retail import policies will remain in place, something its executive team is confident it can manage.
Grant Davies, an investment adviser at Hamilton Hindin Greene, said A2 rallied on the improvement in sentiment, noting that it had done a good job in building its Chinese market.
Synlait Milk rose 3.5 per cent to $8.55 on small volumes. The milk processor faced a setback in its attempts to diversify away from supplying A2 with its Munchkin Grass Fed infant formula, saying it will re-submit its application to the US Food and Drug Administration with extra evidence.
Davies said the delay was unfortunate but that Synlait needs to pursue the strategy.
"Those sorts of things are how they're going to grow their earnings in the long-term," he said.
Fletcher Building was the most traded stock, with 14.9 million shares changing hands compared to its 1.3 million 90-day average. It fell 2.1 per cent to $4.60, a new 14-year low.
Davies said there are still some good quality businesses within Fletcher and that its weaker earnings forecast will still deliver a reasonable result.
"It's about separating the wheat from the chaff, so to speak," he said. "It's just a question of how long it takes."
Meridian Energy fell 0.9 per cent to $3.19 on 2.2 million shares, almost twice its normal volume.
Trade Me rose 0.7 per cent to $5.97 on twice its average volume, extending yesterday's gain on news it might face an attractive takeover bid by UK private equity firm Apax Partners. Morningstar Research gives the $6.40 indicative offer a 50/50 chance of success.
Among other companies with turnover of more than 1 million shares, Spark New Zealand slipped 0.4 per cent to $4.14, Fonterra Shareholders' Fund decreased 0.2 per cent to $4.80, and Precinct Properties New Zealand increased 1.1 per cent to $1.43.
Ryman Healthcare rose 2.3 per cent to $11.50 ahead of tomorrow's first-half result, while Kathmandu Holdings fell 1.2 per cent to $2.49 ahead of its annual meeting.
Stride Property slipped 0.5 per cent to $1.87 after reporting a decline in first-half distributable profit on smaller rental income and management fees.
Sky Network Television fell 3 per cent to $2.29, the biggest decline on the day.
Trustpower fell 2.6 per cent, or 16 cents, to $6.04 after shedding rights to a 17 cent interim dividend and 25 cent special dividend. Z Energy decreased 1.8 per cent, or 11 cents, to $5.86 after giving up rights to a 12.5 cents per share dividend.
Outside the benchmark index, Warehouse Group was down 3.2 per cent, or 7 cents, to $2.09 after giving up rights to a 6 cents per share dividend.
AFT Pharmaceuticals rose 1.8 per cent to $2.29 after narrowing its first half loss on fatter gross margins.