MARKET CLOSE: Fletcher sheds dividend

New Zealand shares were mixed, with the NZX 50 Index edging up 0.1 percent led by gains in Chorus and Contact Energy, while Fletcher Building fell after shedding its first-half dividend.

The NZX 50 gained rose 2.54 points to 3486.50. Within the index, 15 stocks rose, 16 fell and 19 were unchanged. Turnover was $95.7 million.

Chorus, the network company spun off from Telecom in November, rose about 2 percent to $3.64, the highest close since it began to trade separately.

Chorus "is still a little bit of an unknown until they publish their first accounts," said Grant Williamson, director at Hamilton Hindin Greene. "They have achieved what they said they came to market to do. We could see more of an upside."

Telecom fell 0.4 percent to $2.46.

Contact Energy, the largest power company on the exchange, rose 1.5 percent to $4.68, having fallen to the lowest since 2003 in the past two days.

"They are not trading on large volumes and the movements are exaggerated - there is a little bit of bargain hunting going on," Williamson said.

Fletcher dropped 4.2 percent to $6.70 after going ex-dividend, meaning investors who buy the stock today aren't entitled to its 17 cent interim payment.

Vector dropped 2.3 percent to $2.59 after shedding a 7 cent first-half dividend.

Among retailers, Warehouse Group, the biggest on the bourse, rose 1.5 percent to $2.79. Hallenstein Glasson Holdings, the clothing chain, gained 0.5 percent to $4.02.

Hallenstein today reported that first-half earnings rose 27 percent after a record Christmas and a strong January in the New Zealand market.

Profit rose to $9 million in the six months ended Feb. 1, from $7 million a year earlier, the company said in a statement. That’s at the top end of the $8.7 million-to-$9 million range it flagged on Feb. 8. Sales rose 8 percent to $109 million.

"It just seems to be a retailer that does well in tough conditions - like Michael Hill they keep on performing relatively well," Williamson said.

Michael Hill International, the jewellery retailer, was unchanged at $1.01, having climbed from 89 cents at the start of the year.

Ryman Healthcare, which invests in rest homes, rose 1.4 percent to $3, a record high close. The company reports its full-year results in May, having reported a 15 percent gain in first-half earnings in November, when it affirmed its full-year guidance.

Outdoor equipment retailer Kathmandu recovered some ground, rising 1.3 percent to $1.58.

Sky Network Television rose about 1 percent to $5.18 and Trade Me Group climbed 0.9 percent to $3.50.