Comvita scare weighs on sharemarket

Shares in manuka honey firm Comvita fell 3.6 per cent to $6.10 after the myrtle rust find in the Far North.

New Zealand stocks fell, weighed by worries about Comvita, weaker sentiment across the Tasman as banking stocks took a tumble, and some profit taking in blue chips like Fletcher Building and Ebos Group.

The S&P/NZX 50 Index fell 14.34 points, or 0.2 per cent, to 7412.12. Within the index, 23 stocks fell, seven were unchanged and 20 rose. Turnover was $134 million.

Comvita led the market lower, falling 3.6 per cent to $6.10, extending its decline after the discovery of the myrtle rust fungal plant in the Far North.

"It's not hard to see why Comvita is down as markets don't like uncertainty," said Hamilton Hindin Greene broker James Smalley.

While commentary out of Australia would indicate that the fungal plant had had little impact, investors were jittery about what would happen in New Zealand where conditions might be different, Smalley said.

"Investors will be watching the headlines for the impact over the next few weeks and months."

Dual-listed banking stocks fell as banking shares were weaker across the Tasman after the four big banks said they were working hard to cut costs to maintain earnings momentum as they face challenges such as a new government inquiry and a possible new levy.

Westpac Banking Corp shed 3 per cent to $35.27 while Australia & New Zealand Banking Group fell 2.5 per cent to $31.20. Locally owned lender Heartland Bank fared better, adding 2.9 per cent to $1.75.

Smalley noted that there was some profit taking in stocks, including Fletcher Building given its recent gains.

Fletcher Building ended down 1.9 per cent at $8.48.

Sanford shed 2.1 per cent to $7.10 but Smalley said the volumes were thin and it might just have been someone selling down their holding.

In the other direction, New Zealand Refining posted the biggest rise but again, on very light volumes. The stock added 3.4 per cent to $2.43.

"It might just be the opposite story to Sanford, where it has been bid up to that level so the buyer can actually get some volume," said Smalley.

A2 Milk continued to attract attention, adding 2.6 per cent to $3.60 while Port of Tauranga ended up 1.7 per cent at $4.24.

Meanwhile, other large caps gave back some gains with Auckland International Airport down 1.3 per cent to $6.97. Ebos shed 1.4 per cent to $18.15, Tegel Group fell 0.9 per cent to $1.08 and Sky Network Television fell 0.8 per cent to $3.69.