New Zealand shares fell for a second day, having reached a nine-month high last week, as investors pondered whether this week's gross domestic product figures will show an economy growing fast enough to justify gains in equities. Contact Energy and Air
BUSINESSDESK: New Zealand shares fell for a second day, having reached a nine-month high last week, as investors pondered whether this week's gross domestic product figures will show an economy growing fast enough to justify gains in equities. Contact Energy and Air New Zealand fell.
The NZX 50 fell 19.04 points, or 0.5 percent, to 3485.97. Within the index, 25 stocks rose, 19 fell and six were unchanged. Turnover was $113.4 million.
Stocks rallied globally last week on optimism about a return to economic growth in the US and the Standard & Poor's 500 Index closed above 1400 for the first time since May 2008.
Contact Energy, the biggest power company on the exchange, fell 2.9 percent to $4.78. The company released operational data for February today that showed electricity customers fell to 444,500 from 461,500 in February last year. Gas customers slipped to 61,000 from 61,500.
Air New Zealand declined 1.7 percent to 86 cents. The airline had to ground its Mount Cook unit's ATR aircraft after cracks were found in one. The airline is progressively putting them back into service though three require repairs.
Fletcher Building fell 1.6 percent to $6.78, its second daily decline, having reached a five-month high last week.
"A lot of stocks had a good run last week with the S&P pushing through key milestones," said Mark Lister of Craigs Investment Partners. "There is more talk of will we see a short term correction."
GDP figures due on Thursday are expected to show the economy grew at a 0.6 percent pace in the fourth quarter, slowing from 0.8 percent three months earlier. Weak manufacturing slowed the pace of growth while construction, retailing and farming recovered, economists say.
The growth report "will only have an influence because the market has had such a good run, so we need some good news on the data front to justify it," Lister said. "If nothing has changed maybe they have got over-heated."
Telecom declined 0.4 percent to $2.45, having reached the highest level since it spun off its Chorus unit in November. Chorus was unchanged at $3.59.
Sky City Entertainment Group, which operates the Auckland casino and hotel complex, fell 1.8 percent to $3.91.
Pumpkin Patch, the children's clothing chain, led gains among retailers, rising 2.1 percent to 98 cents.
New Zealand consumer confidence rose in the first three months of the year after slumping in the fourth quarter. The Westpac McDermott Miller Consumer Confidence Index rose 1.1 points to 102.4 in the latest quarter, having tumbled to 101.3 in the fourth quarter, which was the lowest since 2009.
Trade Me, the auction website, rose 2.1 percent to a new record $3.46.
"I see it stabilising," Lister said. "It deserves to trade in the $3.30 to $3.50 range. Hard to see it extending gains much more. Maybe it is being added to new portfolios."
Michael Hill International, the jewellery chain, gained 1.9 percent to $1.05. Hallenstein Glasson Holdings, the clothing retailer, rose 1.5 percent to $4.07.
AMP, the Australian wealth manager, gained 2.6 percent to $5.44 on the NZX 50, leading the index higher.
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