Market close: NZ shares fall, Chorus hurt by regulatory fear

BUSINESSDESK: New Zealand shares fell, led by Chorus amid disappointment the regulator is proposing cheaper access to its copper lines, which has the potential to dent earnings.

Telecom, from which Chorus was spun off last November, also declined.

The NZX 50 Index fell 26.92 points, or 0.8%, to 3549.77. Within the index, 26 stocks fell, 16 rose and eight were unchanged.

Turnover was $133 million, of which Chorus and Telecom alone made up $79m.

Chorus tumbled 7.7% to $3.25.

In a draft determination, the Commerce Commission indicated it wants to reduce the wholesale price of access to its copper lines to $19.75 a month from its current price of $24.46 over two years.

The company said on a briefing call that 6% of its copper-based access services would be affected.

"The Commerce Commission is impacting the free market once again," said Greg Easton, advisor at Craigs Investment Partners.

“Chorus, I imagine, will be frustrated as are investors and the markets - even though it’s a draft ruling."

Telecom declined 1.7% to $2.53. Telstra, Australia’s biggest phone company, rose 1.5% to $4.63

Auckland International Airport, the nation’s busiest gateway, rose 0.2% to $2.555.

The company announced today what it called Ambition 2020, a strategy to lift visitor numbers, especially from east Asia.

Fisher & Paykel Healthcare, which gets more than 50% of its revenue in US dollars, rose 1.4% to $2.22 as the kiwi weakened.

The local currency briefly dropped below 80 US cents for the first time since January.

"Exporters have picked up slightly and that will be because of the dollar," Mr Easton said.

Rakon, which makes components for navigation systems and mobile phones, rose 5.9% to 54 cents.

F&P Appliances climbed about 1% to 52.5 cents.

Trade Me Group, the auction site spun off by Fairfax Media in December, rose1% to a new high of $3.87.

“There’s a continued good news flow – they’ve been acting on their strategy and they have been doing the rounds and getting their story out their," Mr Easton said.

Fletcher Building, the biggest construction firm on the NZX 50, fell 1.1% to $6.28.

Pumpkin Patch, the children’s clothing chain, fell 5% to 95 cents and Warehouse Group declined 1.8% to $2.70.