New Zealand shares fell led by Spark New Zealand as investors booked
profit on recent gains in regular dividend paying stocks.
MightyRiverPower and Contact Energy paced the decline.
The NZX 50 Index fell 39.865 points, or 0.7 percent, to 5749.315. Within the index, 26 stocks fell, 14 rose and 10 were unchanged. Turnover was a higher-than-average $231 million, boosted by Sky Network Television shares, with 6 million changing hands in a single trade.
Yield stocks, which have been pushed higher by investors search for reliable income in a globally low interest rate environment, fell as investors looked to crystalise recent gains. Spark dropped 3.9 percent to $3.315. MRP declined 2.1 percent to $3.30. Contact fell 2.1 percent to $6.87.
"The market is certainly weaker and what we are seeing is some investors taking profit on the stocks that have had a pretty good run in recent times, particularly the electricity producers and also Spark," Grant Williamson, director at Hamilton Hindin Greene said. "Investors do expect to receive a reasonable premium over what they'd get from interest rates by buying equities and that gap has tightened up considerably follow the share market rise.
Read more at Click here / www.trade4x.net
The NZX 50 Index fell 39.865 points, or 0.7 percent, to 5749.315. Within the index, 26 stocks fell, 14 rose and 10 were unchanged. Turnover was a higher-than-average $231 million, boosted by Sky Network Television shares, with 6 million changing hands in a single trade.
Yield stocks, which have been pushed higher by investors search for reliable income in a globally low interest rate environment, fell as investors looked to crystalise recent gains. Spark dropped 3.9 percent to $3.315. MRP declined 2.1 percent to $3.30. Contact fell 2.1 percent to $6.87.
"The market is certainly weaker and what we are seeing is some investors taking profit on the stocks that have had a pretty good run in recent times, particularly the electricity producers and also Spark," Grant Williamson, director at Hamilton Hindin Greene said. "Investors do expect to receive a reasonable premium over what they'd get from interest rates by buying equities and that gap has tightened up considerably follow the share market rise.
Read more at Click here / www.trade4x.net
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