NZ shares drop as Air NZ, Ebos fall; F&P Healthcare, Auckland Airport gain

The S&P/NZX 50 Index fell 22.47 points, or 0.2 percent, to 9,139.87. Within the index, 26 stocks fell, 20 rose and four were unchanged. Turnover was $115.4 million.

Leading the index lower was Air New Zealand, down 4.3 percent to $3.265. It lifted full-year pre-tax earnings 2.5 percent to $540 million despite significantly higher fuel prices, but the airline is slightly more downbeat about the current financial year as those costs continue to push higher.

The company had expected to improve on 2017's $527 million earnings based on an average jet fuel price of US$60 per barrel. The price, however, increased 25 percent to US$75 per barrel.

"After having been very strong for the last few days, and perhaps surprisingly strong given the known fuel cost and currency headwinds they'll face going into next year, it's a bit of reality," said Matt Goodson, managing director at Salt Funds Management. "The factors are no surprise. The business is still performing well in terms of the controllables, but the reality of those two things came home."