Mixed close for NZ sharemarket
New Zealand shares have closed mixed as investors shunned growth-orientated stocks in favour of companies offering a steady yield.
The NZX 50 Index fell 1.857 points, or 0.04 per cent, to 5112.386 on Thursday.
Within the index, 18 stocks fell, 19 rose and 13 were unchanged. Turnover was $118.8 million.
Growth-orientated stocks have fallen out of favour after making big gains in the first quarter of the year, as analysts question their high valuations relative to earnings ahead of next month's reporting season.
Xero fell 4.7 per cent to $24.50, its lowest since October, and led the benchmark index lower.
A2 Milk slipped 1.5 per cent to 67 cents and Diligent Board Members Services declined 1.2 per cent to $4.11.
None of those companies pay dividends.
Companies offering steady dividends paced gainers, with electricity generator-retailers Mighty River Power and Genesis Energy both up 1.1 per cent to $2.29 and $1.83 respectively.
"Yield is still the thematic choice of the moment in the market, and the growth stocks are the ones that have tended to come under pressure," said Rickey Ward, NZ equities manager at JBWere Equities New Zealand.
"I think everyone has been scratching their heads for quite some time as to the multiples you're paying for the market, so they're waiting for earnings to justify those multiples."
Kathmandu Holdings, the outdoor equipment chain, was the benchmark index's best performer, climbing 2.7 per cent to a month-high of $3.39.
Port of Tauranga rose 1.6 per cent to $15.75, extending Wednesday's gains on news global shipping line Maersk will rotate its Southern Star service through the port, adding 70,000 containers to cross the wharves every year.
Fletcher Building rose 0.3 per cent to $8.91 and Telecom Corp climbed 0.4 per cent to $2.775.
