Market close: NZ shares fall as earnings loom, FPA dips

BUSINESSDESK: New Zealand shares fell as investors await earnings from companies likely to show the impact of tough markets and a high kiwi dollar, such as Fisher & Paykel Appliances. 

Guinness Peat Group fell ahead of its annual meeting this week.

The NZX 50 Index fell 8.05 points, or 0.2%, to 3493.38. Within the index, 25 stocks fell, 13 rose and 12 were unchanged.

Turnover was a lower-than-average $68.6 million.

F&P Appliances, the home appliance manufacturer with sales in Europe, North America and Asia, dropped 1.8% to 55 cents.

While the kiwi has fallen to its lowest levels this year in the past month, its results are expected to show the battle it has faced with a strong currency and sluggish sales in the US and Europe.

"They will probably report well in their functional currency, the US dollar, but it will be ugly in New Zealand dollars," said Greg Easton, investment advisor at Craigs Investment Partners.

The weaker kiwi "won't impact what they report this week and it has been one of the toughest years ever for exporters".

Fisher & Paykel Healthcare, which gets more than 50% of sales in US dollars and also reports this week, rose 1.3% to $2.41.

Mainfreight, the biggest transport company on the NZX 50, jumped 1.3% to $9.24 ahead of its results this week.

Guinness Peat declined 2.1% to 47.5 cents. Investors including those that have given their proxies to the NZ Shareholders' Association want to vote the company's founder, Ron Brierley, off the board at this week's meeting.

Cavalier, the carpet and wool scouring group, declined 4.6% to $1.46. PGG Wrightson, the nation's biggest rural services company, fell 3% to 32 cents.

Ryman Healthcare, the retirement village investor which last week reported its 10th consecutive year of profit growth, rose 0.3% to a new record $3.38.

"If their growth is at 20% per annum there is no reason why their share price can't grow at 20% per annum," Mr Easton said.

"They are at the point where finding the next site will be a problem and it may mean a slowdown in development."

OceanaGold, the operator of the Macraes gold field, rose 0.4% to $2.43, having reached a three-year low last week as the price of gold fell.

"Looking at the gold price - it is up only slightly," Mr Easton said. "When the markets are heading downwards there is usually a flocking towards gold, but that didn't happen."

Methven, the tapware and bathroom fittings manufacturer that dropped out of the NZX 50 this year, rose 2.5% to $1.22.

The company last week met full-year profit guidance even as its Australian and New Zealand sales weakened.

Among the largest companies on the bourse, Fletcher Building fell 0.3% to $6.27 and Contact Energy fell 1.2% to $4.84.

Telecom, the biggest company on the exchange, rose about 1% to $2.55.