The local sharemarket has headed into the holidays at a record high.

The NZX Top 50 index has extended yesterday's break through the symbolic 13,000 level, as investors picked up underpriced stocks and positioned themselves for the new year.

The index ended a shortened trading session 18 points higher at 13,038, off its highs for the day but still a record close.

So far this year, the New Zealand market has risen nearly 14 percent, making it one of the best performing in the developed world.