Investors cash in gains to chase value elsewhere
The S&P/NZX 50 Index declined 67.76 points, or 0.7 percent, to 9,963.90. Within the index, 16 stocks fell, 30 rose, and four were unchanged. Turnover was $332.2 million.
Greg Smith, head of research at Fat Prophets, said there was an “Easter value hunt” happening as investors sold high-value stocks to take advantage of low share prices of other companies that could recovery after the covid–19 crisis wanes.
“We are seeing a little bit of rotation out of those higher priced blue-chip names and a little bit creeping into the more beaten up stocks that may well recover a few months down the track,” Smith said.
F&P Healthcare and A2 Milk were both examples of stocks that have been strong performers throughout the crisis and were now being sold off amid a more upbeat mood, said Mark Lister, head of private wealth research at Craigs Investment Partners.
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