MARKET CLOSE: NZ shares fall, Cavalier leads slide

BUSINESSDESK: New Zealand shares fell, led by Cavalier, after the carpet maker said charges to restructure its carpets business may wipe out profits this year.

SkyCity Entertainment Group gained as debate continues about its deal to build a conference centre in exchange for more slot machines.

The NZX 50 Index fell 8.95 points, or 0.3%, to 3516.23. Within the index, 24 stocks fell, 20 rose and six were unchanged.

Turnover was $65.5 million, making it one of the lightest trading days this month.

Cavalier fell 11% to $1.89, a Two-month low.

The nation’s only listed carpet maker said today it may post a full-year loss as it takes steps to restructure its broadloom carpet business, ruling out any dividend payment.

“For every seller there is a buyer so you may see some bargain hunting in the stock – but only for the more patient investor,” John Elsom, investment advisor at Craigs Investment Partners, said.

SkyCity rose 2.1% to $3.90.

The casino and hotel company is hoping to close a deal to build a national convention centre in Auckland in exchange for a law change that would allow it to operate more slot machines.

“The stock has got a bit of negative publicity – people are thinking they have been getting battered more than expected,” Mr Elsom said.

Heartland New Zealand, the building society, fell 5% to 57 cents.

Fletcher Building declined 2.2% to $6.14.

The government has wrested control of rebuilding Christchurch from the city council and Fletcher has the contract to oversee the work.

PGG Wrightson, the nation’s biggest rural services company, rose 5.3% to 40 cents.

That was the biggest gainer on the index and came on the day that the government approved the sale of the Crafar farms to Shanghai Pengxin Group.

Pumpkin Patch climbed 4.8% to $1.10 and Restaurant Brands, the fast-food operator, rose 3.6% to $2.

Contact Energy fell 0.4% to $4.89.

Michael Hill International, the jewellery chain, fell 3.7% to $1.05. Telecom slipped about 1% to $2.505.

Infratil fell 0.5% to $1.89 after subsidiary Snapper said Wellington’s usage has hit 80% penetration, and it is mulling parking payment options.

Snapper cards on issue have climbed by 70,000 to 370,000 since August.

APN News & Media was unchanged at $1.05 on the NZX after the company said chairman Gavin O’Reilly has stepped down from the board as part of an exit from Irish parent Independent News & Media.

The ASX-listed shares fell 1.2% to 85 cents.