13 Apr 2014
Globally the big trend this week was the technology and biotech sell-off. The former market darlings were sold off heavily - a common theme when stocks get ahead of themselves and a lack profits to make them easy to value. Xero Limited (XRO) certainly got headlines for its 17.1% fall over the week making its selloff over the five weeks a massive 30% representing a NZ$1.7 billion drop in market value for the name. Although XRO reported year end customers at 284k - up an impressive 81% - Australian and North American customer growth was behind what some broker analysts had hoped. Other falls over the week included the 16.6% fall in security software firm Wynyard (WYN) and NZ’s biomedical company, Pacific Edge, who is commercialising tests for the early detection of cancer. This led the market lower for the week eliminating gains made earlier in the month. Demand was solid for Telecom (TEL) with the stock up 3.2% over the week as investors sought safety in the face of the technology and biotech sell-off.