The New Zealand sharemarket fell for the fifth time in the last seven trading days as profit-taking in the growth stocks became more evident.
The S&P/NZX 50 Index was down 94.41 points or 0.81 per cent to 11,539.10, after reaching an intraday high of 11,663.88. It mirrored the Australian market, with the S&P/ASX 200 falling 0.89 per cent to 5812.5 at 5.45pm.
There were 41 gainers and 98 decliners over the whole New Zealand market which saw 43.81 million shares worth $185.61 million changing hands.
Dan Stratful, investment adviser with Forsyth Barr, said "what you are seeing now is a rotation out of growth stocks like Fisher and Paykel Healthcare and into value shares which are considered cheap.
"People are taking profit on these growth stocks, but what they are recycling into is unclear. I caution investors buying 'bad names' because they are cheap. It's not easy finding value in this market, and the rising kiwi dollar (now 67.70c to the US dollar) isn't helping," he said.
"The market is in a holding pattern leading up to the New Zealand election, but reducing the Auckland restrictions to level 2 might help some sensitive stocks like Kiwi Property – owner of Sylvia Park shopping centre – and SkyCity."
Market leader Fisher and Paykel Healthcare fell $1.06 or 3.29 per cent to $31.19 on big trade of 2.4 million shares worth $75m. Stratful said the stock was quite expensive up to $36 a share, which was more than 50 times price earnings ratio.
The other market heavyweight a2 Milk has also come off the boil after reaching a high of $21.51 at the end of July. The stock, however, was up 16c to $17.85, and Freightways also rose 12c to $7.52.
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Having climbed to a record high, network operator Chorus was down 29c or 3.19 per cent to $8.80, while travel provider Serko's run was also halted, falling 22c or 4.63 per cent to $4.53. SkyCity slipped 10c or 3.51 per cent to $2.75.
Harbour Asset Management and Jarden Securities disclosed they have reduced their combined shareholding in Serko from 10.42 per cent to 9.79 per cent.
The dual-listed banks had falls of more than 2 per cent, ANZ down 41c to $18.19 and Westpac down 39c to $17.81. Vector fell 11c or 2.48 per cent to $4.33, while Hallenstein Glasson surged 17c or 3.75 per cent to $4.70.
There were several substantial shareholder notices. Chicago-based Kabouter Management LLC decreased its stake in Pushpay Holdings from 5.32 per cent to 4.11 per cent after selling 3.32 million shares. Pushpay fell 30c or 3.8 per cent to $7.60, after a strong run.
Forsyth Barr Investment Management sold down its shareholding in Sanford from 5.55 per cent to 4.94 per cent, and Sanford's share price decreased 15c or 2.6 per cent to $5.62.
Accident Compensation Corporation has been active on the market rebalancing its portfolio. It bought 18.19 million shares worth $2.23m in Sky Network Television between June and September 18 and sold 6.91 million shares for $1.04m in the same period. ACC's stake declined from 9.38 per cent to 8.35 per cent, and Sky TV's share price fell 0.5c or 3.14 per cent to 15.54.
ACC's shareholding in New Zealand Refining increased from 5.04 per cent to 6.95 per cent, and Refining's share price slipped 1c to 60c. ACC then reduced its stake in Tourism Holdings from 8.01 per cent to 6.58 per cent. Tourism Holdings declined 5c or 2.13 per cent to $2.30.