Market close: Contact, Fletcher, Infratil down as shares fall

New Zealand shares fell as offshore investors continued to be rattled by the falling kiwi dollar and lack of action from the Bank of Japan sent equity markets down across Asia.

Contact Energy and Fletcher Building fell, and Infratil dropped to its lowest this year.

The NZX 50 Index fell 9.807 points, or 0.2 percent, to 4463.577. Within the index, 20 stocks fell, 21 rose and nine were unchanged. Turnover was $94 million.

The Bank of Japan today stuck to its massive bond-buying programme, disappointing some investors who had been expecting further stimulus measures for the world's third-largest economy. The Nikkei 225 index was recently down 1.1 percent.

Contact Energy, the biggest utility on the NZX 50, declined 1.4 percent to $5.07 and Fletcher Building slipped 1.1 percent to $8.27 after figures showed Australian home-loan approvals rose 0.8 percent in April, the smallest increase since January. Infratil, a diversified investment group, fell 2.7 percent to $2.19.

"There's still a bit of selling by offshore investors on the strength of the US dollar," says Grant Williamson, a director at Hamilton Hindin Greene.

Companies that benefit from a weaker kiwi gained as the currency traded near its lowest levels in a year. Fisher & Paykel Healthcare, which gets more than 50 percent of its revenue in US dollars, rose 1.9 percent to $3.31.

"There's been a lot of interest in Healthcare since the New Zealand dollar went into decline," Mr Williamson says.

Mainfreight, which has logistics and transport operations in the US, Europe and Asia, rose 2.6 percent to $10.42. Sky Network Television, whose programming and equipment costs are typically in US dollars, fell 1.1 percent to $5.68.

Goodman Property Trust dropped 0.5 percent to $1.06 after shedding its 1.563 cents a share final dividend.

OceanaGold, the operator of the Macraes gold field, fell 5.3 percent to $2.13, leading declines among mining and resource companies, Bathurst Resources dropped 8.3 percent to 22 cents and NZ Oil & Gas slipped 1.2 percent to 86 cents.

SkyCity Entertainment Group declined 0.7 percent to $4.30.

Fonterra Shareholders' Fund edged up 0.1 percent to $7.28 after the dairy company set its guaranteed milk price for 2014 at $7/kilogram of milk solids, the same level as its forecast payout. That means farmers can commit to be paid that amount now and be certain of their cashflow next season.

Kathmandu Holdings, the outdoor equipment retailer, fell 1.8 percent to $2.67. Children's clothing chain Pumpkin Patch was the biggest gainer, rising 5.8 percent to $1.10.

Trade Me, the auction site, fell 1.5 percent to $4.76.

(BusinessDesk)