New Zealand shares have fallen as investors sold tech and high-growth companies, taking advantage of recent gains to raise cash for the government’s Genesis Energy sale.
The NZX 50 Index fell 48.061 points, or 0.9 per cent, to 5075.840 on Monday.
Within the index, 29 stocks fell, 12 rose and nine were unchanged. Turnover was relatively low at $96.9 million.
The benchmark index has gained 8.2 per cent since the start of the year and investors are taking the opportunity to raise funds to buy Genesis shares.
New Zealand’s largest electricity retailer by customer base is the last on the block in the government’s partial privatisation programme and is considered attractive because of its relatively high dividend yield.
Xero, which has risen 220 per cent in the past year, dropped 5.8 per cent to $35.60.
A2 Corp, the milk marketer which gained 49 per cent in the past 12 months, fell 2.3 per cent to 85 cents.
Bio-tech company Pacific Edge, which gained 112 per cent last year, slid three per cent to $1.29.
“They had performed very well over a short period and there is one deal in particular which we are seeing a bit of selling to fund and that’s the Genesis issue,” said Greg Easton, investment advisor at Craigs Investment Partners.
“Because the market had run so well everyone would like to see a bit of heat come out of it.”
Energy stocks also weakened.
Auckland lines company Vector slipped two per cent to $2.45, Meridian Energy 0.9 per cent to $1.14, Mighty River Power 0.5 per cent to $2.16 and Contact Energy 0.4 per cent to $5.28.
Fletcher Building, New Zealand’s largest listed company, fell 1.6 per cent to $9.44.