Shares fall led by growth stocks; Xero drops to 9-month low

Suze Metherell for the National Business Review writes: New Zealand shares edged lower as investors shunned growth-orientated stocks in favour of companies offering a steady yield, led by accounting software developer Xero.

The NZX 50 Index fell 1.857 points, or 0.04 percent, to 5112.386. Within the index, 18 stocks fell, 19 rose and 13 were unchanged. Turnover was $118.8 million.

Investors sought companies which offer a yield over growth-orientated stocks, which have fallen out of favour in recent months 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 when they will get a steer on how firms are tracking.

Xero fell 4.7 percent to $24.50, its lowest since October, and led the benchmark index lower. [snip]  The article continues @ The National Business Review, click here to continue reading...