Market sell-off continues: Fletcher, Xero fall

The downward trend continues on the NZX. File pic New Zealand Herald.

New Zealand share prices once again took their lead from offshore markets and fell further this morning, with former share market favourite Xero dropping by 3 per cent.

By 1.20 pm the NZX 50 index was down 44 points (0.8 per cent) at 5,133, led by Fletcher Building, which dropped by 13c to $8.54, Sky TV down 9c to $5.91 and Port of Tauranga down 10c at $16.00.

"We are seeing a healthy correction because the market's have been pretty buoyant," Shane Solly, portfolio manager and research analyst at Harbour Asset Management said.

"We still face a fairly challenging outlook for global growth but there are still a lot of different moving parts," he said.

The market fell by about 1 per cent Monday as investor concern mounted about the world's growth prospects and as tensions in the world's trouble spots increased. Most markets in Asia were also weaker.

Overnight, Wall Street's S&P 500 index fell by more than 1 per cent, recording its worst three day slide since November 2011. The index ended at below its 200-day moving average for the first time since November 2011.

Shares in accounting software specialist Xero remained under pressure, losing 55c to $17.40.

The stock is now well below $18.15, which was where the company pitched its shares as part of a $180 million capital raising.

At today's level, Xero shares are now 62.1 per cent, or $28.59 down on their record high of $45.99, reached in March, showing investors were taking a harder look at the valuations of technology-based stocks.

Overall , growing geo-political tensions in Ukraine, Syria, Iraq and Hong Kong as well as the threat of Ebola has added to uncertainty in the market.