New Zealand shares fell on concern the NZX 50 Index's 9 percent gain this year has left the local bourse fully valued relative to the earnings outlook. Ryman Healthcare, Telecom and Fletcher Building paced the decline.
The NZX 50 Index fell 32.889 points, or 0.6 percent, to 5134.891. Within the index, 26 stocks fell, 18 rose and four were unchanged. Turnover was $135.2 million.
Ryman declined 3 percent to $8.44. The retirement village operator has gained 32 percent over the past year, outperforming the benchmark index's 11 percent gain.
Telecom, the bourse's second largest company by market value, slipped 1.5 percent to $2.69, having gained 16 percent year-to-date. Fletcher Building, New Zealand's largest listed company, dropped 1.1 percent to a near three month low of $9.00 and has risen 8.3 percent in the past year.
"The market is trading at extended multiples compared to what we are used to," said David Price, a broker at Forsyth Barr. "People are not in a mad rush to buy stocks, given a lot of the leaders look like being fully priced."