Shares in A2 Milk surged to a new record yesterday as investors, particularly those in Australia, continue to show bullish appetite for the alternative milk firm that has been the top performer on the S&P/NZX 50 this year.
The stock, which is listed on both sides of the Tasman, traded as high as $1.27 - a 16.5% gain on the opening price - before closing up 11.9% at $1.22 last night.
More than $47 million worth of shares changed hands in 381 trades.
A2 shares have gained more than 60% this month, and 112% in the year to date.
The company has been riding a wave of Australasian investor enthusiasm for businesses in the infant formula and natural health products sectors.
That sentiment has driven other stocks, including Sydney-based health supplements firm Blackmores and ASX-listed infant formula maker Bellamy's Australia, to record levels.
Milford Asset Management executive director Brian Gaynor, whose firm holds shares in A2, said Australian "momentum investors" were helping to push the stock higher.
"There's an awful lot of momentum investors in Australia - when they see something going they get on to it," he said. "It's very much Australian-driven."
Milford has reduced its A2 stake from 5.4% to 4.8% through the sale of 4.1 million shares, worth $4.3 million, on November 18 and November 23, according to a substantial security holder notice.
A2, which listed on Australia's ASX this year, issued a big upgrade to full-year earnings guidance last week on the back of stronger-than-expected infant formula sales, including in China.
The company now expects ebitda - earnings before interest, taxes, depreciation and amortization - of $22 million from total sales of $285 million, up from a previous forecast of $12 million and $267 million, respectively.
By Christopher Adams of the New Zealand Herald
