NZ shares drop, led lower by Comvita

Comvita led the index lower, down 2.3 per cent to $5.62. Photo / File

New Zealand shares fell in light trading, with Comvita and Sky Network Television leading the index lower.

The S&P/NZX50 Index dropped 10.76 points, or 0.1 per cent, to 8,849.16. Within the index, 23 stocks fell, 18 rose and nine were unchanged. Turnover was $108.5 million.

"We're in a holding pattern prior to earnings season which kicks off in about a week's time with AMP Capital and Sky City next Wednesday," said Grant Davies, investment advisor at Hamilton Hindin Greene.

"What we'll be looking out for in earnings season is forward guidance."

Comvita led the index lower, down 2.3 per cent to $5.62, while Sky Network Television fell 2.2 per cent to $2.65 and Mainfreight dropped 1.8 per cent to $27.05.

Fletcher Building fell 1.6 per cent to $6.86 and Spark New Zealand declined 1.3 per cent to $3.75.

Fisher & Paykel Healthcare Corp was the best performer, up 1.3 per cent to $14.77. A2 Milk Co rose 1.1 per cent to $10.44 and Metlifecare gained 1 per cent to $6.08.

Outside the benchmark index, Millennium & Copthorne Hotels New Zealand gained 0.9 per cent to $3.35. It reported a 24 per cent lift in first-half profit as it benefited from growth at NZX-listed residential property developer CDL Investments and a steady tourism market, although it warned it is seeing increased competition.

"There's fairly heavy volume in the stock, and on the face of it fairly positive result with income and profit up over the period," Davies said.

"There is a shortage of hotels in Auckland and Queenstown in particular, though they do note that competitors give them a bit of pressure in this market. They're just paring back expectations, which is fair enough given the run they've had of late."