The rising value of shares in Xero, which was the top-performing New Zealand stock during the past year, continues to defy logic, rising about 10% at one point yesterday, Craigs Investment Partners broker Peter McIntyre said.
''They're up 10% on no news. We can't see what's driving it. It's beyond logic,'' he said.
About 480,000 shares had changed hands by 2pm yesterday, through 530 mainly small transactions, with the largest buyer taking 50,000 shares.
The number of daily trades was ''on par'' for the month high and low of respectively 800,000 shares and 292,000 shares, Mr McIntyre said.
Xero shares opened at $30.10 yesterday and closed at $33.15.
Xero has not posted a profit in five years, booking revenue of $39 million for the year to March and a net loss of $14.4 million for the period.
Forsyth Barr broker Haley Van Leeuwen also noted there was ''nothing new'' to cause the latest spike above $30 per share.
''Xero's caught the eye of investors domestically and internationally. There is a lot of momentum behind this stock, with a significant increase in trading volume seen over the last two weeks, especially after the capital-raising announcement,'' Ms Van Leeuwen said.
The company's announcement last month said it had raised $180 million of capital from high-profile investors, including Facebook billionaire Peter Thiel, sparked a major stock rally, The New Zealand Herald reported.
Ms Van Leeuwen said in Xero's latest quarterly report it had recorded increasing levels of investment in software and premise development in the United States.
''Investors seem to be wanting to get on board now before any future announcements are made,'' she said.
At $4.23 billion, Xero was well behind Fletcher Building's market capitalisation of $6.67 billion, but within reach of Auckland International Airport at $4.64 billion and Telecom's $4.25 billion; but the $33.15 close left Xero fourth, just behind Telecom.
Xero's meteoric share price rise of more than 480%, from $5.40 a year ago has not been without volatility; it was only in mid-July the NZX issued a ''please explain'' when its market capitalisation dipped by $400 million, from its then $18 per share, $2 billion market capitalisation.
