Companies punished when earnings expectations missed

The S&P/NZX 50 Index fell 41.05 points, or 0.4 percent, to 10,222.36. Within the index, 27 stocks fell, 13 rose, and 10 were unchanged. Turnover was $165.6 million, of which SkyCity Entertainment Group accounted for $38.3 million.

Gentrack led the market lower, dropping 6.3 percent to $5.23 on a volume of 101,000 shares, more than its 90-day average of 76,000. The software company wrote down the value of a two-year-old acquisition which wasn't generating the expected increase in revenue, posting a first-half loss as a result.

Greg Smith, head of research at Fat Prophets, said with the NZX50 above 10,000, companies needed to hit earnings expectations to maintain their valuations.

"When the market's had such a good run, if you disappoint, it's not going to take it in its stride," he said.