Market commentary

WELLINGTON: The New Zealand sharemarket fell for the fifth time in the last seven trading days yesterday as profittaking in the growth stocks became more evident.

The S&P/NZX 50 Index was down 94.41 points, or 0.81%, to 11,539.10, after reaching an intraday high of 11,663.88. It mirrored the Australian market, where the S&P/ASX 200 fell 0.89% to 5812.5 at 5.45pm.

There were 41 gainers and 98 decliners over the whole New Zealand market.

Dan Stratful, investment adviser with Forsyth Barr, said ‘‘what you are seeing now is a rotation out of growth stocks like Fisher and Paykel Healthcare and into value shares which are considered cheap.

"People are taking profit on these growth stocks, but what they are recycling into is unclear. I caution investors buying ‘bad names' because they are cheap.’’

Market leader Fisher and Paykel Healthcare fell $1.06 to $31.19 on big trade of 2.4 million shares worth $75 million. The other market heavyweight, a2 Milk, has also come off the boil. However, it was up 16c to $17.85, and Freightways also rose 12c to $7.52.

Having climbed to a record high, Chorus was down 29c to $8.80, while travel provider Serko's run was also halted, falling 22c to $4.53. SkyCity fell 10c to $2.75.

Harbour Asset Management and Jarden Securities disclosed they had reduced their combined shareholding in Serko from 10.42% to 9.79%.

The duallisted banks had falls of more than 2%, ANZ down 41c to $18.19 and Westpac down 39c to $17.81.

There were several substantial shareholder notices. Chicagobased Kabouter Management LLC decreased its stake in Pushpay Holdings from 5.32% to 4.11% after selling 3.32 million shares. Pushpay fell 30c to $7.60.

Forsyth Barr Investment Management sold down its shareholding in Sanford from 5.55% to 4.94%, and Sanford's share price decreased 15c or 2.6% to $5.62.

Accident Compensation Corporation has been active on the market. Its shareholding in New Zealand Refining increased from 5.04% to 6.95%, and Refining's share price slipped 1c to 60c.

ACC then reduced its stake in Tourism Holdings from 8.01% to 6.58%. Tourism Holdings declined 5c to $2.30. —