Major underwear maker Gunze Ltd shares hit a new 2000-2001 high on the Tokyo Stock Exchange Monday morning.

After hitting a high of 457 yen, the issue traded at 452 yen past mid-morning, up 18 yen from Friday, when it surged 3.3 per cent.

In late February, the company said it will likely see a net loss of 3.5bn yen for the year ending this month due to an extraordinary loss related to the closing of its unprofitable businesses.

But investors took the loss estimate as a positive sign of the company's readiness to address past problems and pave the way for growth, a large brokerage official said.