New Zealand shares fell over 1 per cent as foreign investors sold back their stakes. Photo / File
New Zealand shares fell over 1 per cent as foreign investors sold back their stakes, with A2 Milk Co and Meridian Energy hit hardest.
The S&P/NZX50 Index dropped 114.46 points, or 1.4 per cent, to 8,250.44. Within the index, 36 stocks fell, 10 were unchanged and just four rose. Turnover
was $131.7 million.
"The market has certainly had a change of direction. Stocks held largely by foreign investors have come under pressure and there are not a lot of buyers in the marketplace at the moment, so when you have a number of investors wanting to get out it certainly puts pressure on pricing," said Grant Williamson, investment advisor at Hamilton Hindin Greene.
"It does look like foreign investors are taking profits, the Kiwi dollar has helped them recently by strengthening," Williamson said. "The market is still underpinned by solid fundamentals. We've had such a good run, we have been overdue for somewhat of a correction, but I don't see it lasting too long."
Blue chip stocks like Fletcher Building, Meridian Energy, and Ryman Healthcare have dropped on the back of this selling, Williamson said. Meridian Energy was the second-worst performer on the index today, falling 2.7 per cent to $2.90, with Ryman down 2.1 per cent to $10.94 and Fletcher falling 1.3 per cent to $7.61.
