The NZX 50 Index has climbed to a record high as a new US partner for Xero attracted investors back to the sold-off stock.
The benchmark index rose 84.385 points, or 1.6 per cent, to 5232.676 points on Wednesday.
Within the index, 38 stocks rose, five fell and seven were unchanged. Turnover was $279 million.
Xero, the cloud-based accounting software company chasing growth, secured a partnership with H&R Block in the US and slowed cash burn for the first three months of this year luring back investors.
The company was caught in a global tech sell-off, sliding 20 per cent over the past month, as investors questioned the valuations of high-growth companies. The shares rose 5.5 per cent to $31.65.
“Probably slightly better than we were expecting in terms of cash burn, down $2.5 million from the previous quarter, but I think it’s more to do with the strategic partner H&R Block,” said David Price, a Forsyth Barr broker.
“It’s a matter of seeing whether they can convert these alliances into dollars.”
State-controlled energy company Meridian rose 2.5 per cent to $1.23, while fellow government-controlled Mighty River Power climbed 1.5 per cent to $2.325, an eight-and-a-half month high.
Contact Energy advanced 1.4 per cent to $5.69 and Auckland lines company Vector increased two per cent to $2.56.
Outside the benchmark index Genesis Energy rose for the fourth consecutive day up 0.5 per cent to $1.90.
“You’ve seen a lot of electricity generators have a pretty strong rally as of late, and that is a refocus on the yield that they do offer,” said Mr Price.
“People are looking at what the comparative out there is for them and they do look relatively attractive.”
Telecom advanced 1.8 per cent to $2.77, Auckland International Airport climbed 2.1 per cent to $3.97 and Air New Zealand rose 1.2 per cent to $2.10.
OceanaGold soared 11 per cent to $2.93 after reporting a 730 per cent boost in first quarter earnings as its Philippines’ operation came online.
Diligent Board Member Services rose 5.3 per cent to $4.54 after the governance app maker completed its 2013 annual report having restated financials for the last three years due to an accounting error.