Market close: NZ shares fall in shortened trading week

BUSINESSDESK: New Zealand shares fell, to end the shortened trading week lower, paced by Telecom and Fletcher Building, as the local bourse reflected generally weaker equity markets across the Asia Pacific region.

The NZX 50 Index declined 12.44 points, or 0.4%, to 3467.98. Within the index, 24 stocks fell, 17 rose and nine were unchanged. Turnover was $86 million.

The index declined 1.2% this week, ahead of the four-day Easter weekend. Trading resumes next Tuesday.

Across Asia, Japan’s Nikkei 225 Index was down 0.5% in early afternoon trading. Australia’s S&P/ASX 200 Index fell 0.4%.

On Wall Street, the Standard & Poor’s 500 Index was down 1% overnight.

Telecom, which has surged 18% this year, fell 1.4% to $2.43.

Fletcher fell 0.6% to $6.20, having gained 5.4% this year.

Australian government figures this week showed the total number of houses and apartments approved for construction fell a seasonally adjusted 7.8% in February. Economists had been expecting a small increase.

"We’ve seen a pull back in the market taking its lead from the international environment," said Shane Solly, portfolio manager at Mint Asset Management.

“Stocks in New Zealand and Australia are down on weaker building activity statistics in Australia."

Warehouse Group, the biggest retailer on the bourse, fell 3.7% to $2.61, making it’s the largest percentage decline in the NZX 50 today.

Fisher & Paykel Healthcare, which makes breathing respirators and gets more than 50% of revenue in US dollars, rose 2.7% to $2.31 as the kiwi dollar eased.

Rakon, which exports much of its navigation components, gained 2.1% to 49 cents.

Skellerup, which makes rubber goods and milking equipment, gained 2.9% to $1.44, the biggest advance on the NZX 50 today.

Pumpkin Patch, the children’s clothing chain, rose 1.8% to $1.14, extending its gains from yesterday when it announced plans to make sales via the Amazon.

"The decisions made have been very positive,” Mr Solly said. “It is good to see they are taking difficult decisions and changing the way they do business."

Mainfreight, the transport company, rose 1.3% to $9.80 and Ebos Group, the medical equipment and pet supplies company, rose 0.6% to $7.24.

Goodman Fielder, the Australasian food business, fell 3.4% to 85 cents.

Shares in SkyCity Entertainment Group fell 1% to $3.85 after the casino operator remained in the headlines over negotiations with the government to build a convention centre in Auckland in return for an extension of its gaming licence.

NZF shares were unchanged at 0.6 cents apiece after the financial services firm said the receivers of its failed finance unit, NZF Money, filed proceedings against it over the 2010 restructuring of its home loans unit.

KordaMentha’s Brendon Gibson and Grant Graham have told NZF they intend to file papers over a transaction they claim is insolvent, and will seek to freeze the parent company’s assets.