Market close: NZ shares fall, led by Fletcher, Telecom, Auckland Airport

BUSINESSDESK: New Zealand shares fell, led by the biggest companies on the bourse – Telecom, Fletcher Building and Auckland International Airport – after the Federal Reserve offered less stimulus in the US than had been hoped.

The NZX 50 index fell 35.40 points, or 1%, to 3409.39. Within the index, 25 stocks fell, 14 rose and 11 were unchanged. Turnover was about $104 million.

Telecom, the largest company on the exchange, was down 2.2% to $2.425, while shares in Fletcher Building, the country's largest construction company, shed 2.9% to $6.03 and Auckland Airport fell 0.8% to $2.41.

"We have seen some pretty big selling off of Telecom and Fletcher which are held by Aussie investors – they are selling out of the blue chip stocks and that has pushed them down," said Grant Williamson, director at Hamilton Hindin Greene.

Gains were led by stock exchange regulator NZX, up 2.4% to $1.29.

Starting later this year the NZX will list 49% of Genesis Energy, Mighty River Power, Meridian Energy and Solid Energy, together with the partial sell-down of already listed Air New Zealand, adding about $4.8 billion to the NZX 50’s free float market capitalisation.

"As we get closer to the SOE sell down, it's creating a lot of interest in the NZX – it creates more fees and improves the company’s bottom line," Mr Williamson said.

Retirement village operator Ryman Healthcare gained 0.3% to $3.44, matching June 19’s record close.

"Ryman is one the favourite stocks – mainly due to the fact it’s a defensive and growth stock," Mr Williamson said. "Investors are slowly waking up to the fact that the population is ageing."

Retirement-village rival Metlifecare rose 1.9% to $2.20 after shareholders voted in favour of an amended merger proposal, after it reduced the amount of shares it will use to pay for the deal and abandoned plans to raise new equity capital.

Renaissance Corp, which used to have a monopoly on national distribution of Apple products, soared 26% to 13 cents after announcing the sale of its IT distribution division to Exeed Ltd, halving the size of its balance sheet.

APN News & Media, the media company that publishes the New Zealand Herald, was unchanged at $1.01 on the NZX after announcing it had acquired an 82% stake in Australian online shopping club brandsExclusive for as much as $A66 million.

The ASX-listed shares fell 2.7% to 71.5 Australian cents.

Shares in telecommunications company, Zintel Group, jumped 11% to 39 cents after it announced the sale of its subsidiary company, Zintel Cogent, for $1 million, effective July 2.

Comvita shares fell 2.7% to $3.30 after the company said it bought 177,354 ordinary shares at an average price of $3.24, which it will use to reward loyal beekeeper suppliers.