New Zealand shares fell as investors cashed in on yesterday's strong rally and sold down property stocks to take advantage of Investore Property's discounted $100 million capital raising.

The S&P/NZX 50 Index declined 93.37 points, or 0.9 per cent, to 10,666.19. Within the index, 23 stocks fell, 20 rose, and seven were unchanged. Turnover was $178.8m.

Shane Solly, a portfolio manager at Harbour Assets, said investors were redirecting profit from stronger performing stocks into those lagging behind.

"We have a very strong recovery in the New Zealand market, and a lot of stocks have been left behind. So, it is logical that people are taking some profit and looking for opportunities," he said.

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One opportunity on investor's minds was Investore Property's $100m capital raising announced to the NZX this morning. Other property stocks were sold off to free up cash in preparation for the placement, Solly told BusinessDesk.

Investore is offering $85m worth shares to eligible investors through a bookbuild process at a floor price of $1.59, a 10.2 per cent discount from its previous close at $1.77. The remaining $15m shares will be offered to existing shareholders at a further 2.5 per cent discount.

Kiwi Property Group declined 3.5 per cent to 96.5 cents, Argosy Property fell 2.8 per cent to $1.06 and Goodman Property Trust decreased 1.5 per cent to $2.305. Property For Industry increased 0.5 per cent to $2.18 and Precinct Properties New Zealand edged up 0.3 per cent to $1.59.

Fisher & Paykel Healthcare led the market lower, declining 4.3 per cent to $28.07.

Solly said the respirator manufacturer had seen strong growth with a Covid-19 related increase in activity and investors were beginning to question if the same rate of growth would continue.

A2 Milk Co, which also saw increased demand during the pandemic, fell 1.8 per cent to $19.97. It noted chair David Hearn reluctantly sold down his stake in A2 to meet a tax obligation in the UK.

Restaurant Brands New Zealand fell 2.4 per cent to $11.81, having advanced 4 per cent yesterday when its stores reopened under alert level 3 restrictions. Burger Fuel Group also declined, falling 3.5 per cent to 55 cents.

"Some of these stocks that had a bit of a pop going into level 3 are just giving back some of their gains," Solly said.

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Some of this profit is being redirected into stocks still waiting for their turn to "pop". Today, travel stocks found favour after Australian Prime Minister Scott Morrison said restrictions would soon be eased and flagged the potential for travel to and from New Zealand to resume at some stage.

Air New Zealand rose 4 per cent to $1.305, Tourism Holdings increased 2.4 per cent to $1.26 and SkyCity Entertainment Group - which has Australian assets - rose 9.7 per cent to $2.49, the day's biggest gain.

Dual-listed banking stocks were stronger today following the success of National Australia Bank's A$3 billion ($3.2b) placement, Solly said.

Australia and New Zealand Banking Group rose 4.8 per cent to $17.60 and Westpac Banking Corp advanced 4.7 per cent to $16.73. ANZ will report its first-half result tomorrow.

Z Energy rose 1.3 per cent to $3.18. Chief executive Mike Bennetts said the firm will decide on whether to seek the government's wage subsidy next week. He told a webinar today that the fuel retailer would qualify easily and could have received about $3.5m for its corporate employees.