Market close: NZ shares fall, OceanaGold tumbles heavily

BUSINESSDESK: New Zealand shares fell, led by OceanaGold, which fell to the lowest level in more than two years as the price of gold weakened. 

Port of Tauranga and Ryman Healthcare paced the decline.

The NZX 50 Index dropped 20.441 points, or 0.6%, to 3534.915. Within the index, 24 stocks fell, 16 rose and 11 were unchanged.

Turnover was $114 million.

Share were generally weaker across Asia as uncertainty about Greece remaining in the euro zone and the prospects of slowing growth in China and Europe weighed on equity markets and commodity prices.

"There's a bit of weakness in the local market today. Investors are concerned about what Greece will do," said Grant Williamson, director at Hamilton Hindin Greene. "That uncertainty is causing a selloff."

OceanaGold fell to its lowest close since December 2009 as the price of spot gold fell to $US1549.70 an ounce, the lowest since December 29.

Port of Tauranga, the nation's busiest port, fell 1.3% to $11.10, having gained 13% this year.

Ryman Healthcare dropped 0.9% to $3.17,having gained 18% this year.

Freightways fell 3.9% to $3.95, trimming its gain this year to 12%.

"Freightways has had such a good run and investors have had nice profits on the table so they are not scared to take them off the table," Mr Williamson said.

The same applies to Ryman and Port of Tauranga, he said.

Infratil was unchanged at $2.03 after the infrastructure investor's annual underlying earnings of $520m beat forecasts, and the company's board lifted its annual dividend payment to 8 cents per share.

TrustPower, Infratil's biggest investment, was unchanged at $7.80.

Air New Zealand fell 1.6% to 92.5 cents and Auckland International Airport declined 0.2% to $2.585 after the nation's tourism lobby group said its called on Prime Minister John Key to challenge Australia's 17% hike in departure taxes from July 1.

Auckland Airport said the tax hike left New Zealand vulnerable as Australia is its biggest source of visitors, and a similar departure fee increase in the UK has seen the number of Britons fall by 9% in the March quarter.

Dual-listed Pacific Brands was unchanged at 75 cents on the NZX after the clothing manufacturer ended talks with potential buyers.

The company affirmed full-year pre-tax earnings guidance of between $A125m and $A130m.

PGG Wrightson fell 3% to 32 cents after the Real Estate Institute said farm sales are likely to decline from three and a half year highs as uncharacteristically good weather ends, and the rural sector faces weaker prices for locally produced raw materials.

Heartland New Zealand fell 3.7% to 52 cents as local lenders cut lending rates, with Co-operative Bank, formerly known as PSIS, the latest firm to join the rush.

Lenders have been lowering mortgage rates as New Zealand's slow recovery and strong kiwi dollar prompt the Reserve Bank to keep monetary stimulus in place for longer.

Dual-listed Australian banks Westpac Banking rose 0.1% to $29.25 and Australia & New Zealand Bank fell 0.5% to $28.45 on the NZX.

Telstra, Australia's biggest phone company, rose 3% to $4.80, the biggest gainer on the NZX 50 today. The NZX-listed stock has a dividend yield of about 11 percent.

The stock "is getting a kick along in Australia - from investors point of view the stock is defensive and a has a good dividend yield", Mr Williamson said.