MARKET CLOSE: NZ shares join global slide; Vector, Kathmandu fall

BUSINESSDESK: New Zealand shares fell, joining a global slide amid doubts about the pace of worldwide growth and as investors await more US earnings for a take on the global economy.

The NZX 50 Index fell 13.66 points, or 0.4 percent, to 3473.50. Within the index, 32 stocks fell, 12 rose and six were unchanged. Turnover was $117.8 million.

Shares were weaker across the Asia Pacific region in afternoon trading, following on from declines on Wall Street on Friday, when the Standard & Poor's 500 Index fell 1.3 percent on weaker-than-expected Chinese growth and concern about Spain's rising borrowing costs. Investors are awaiting earnings results of 91 companies in the S&P 500 this week.

OceanaGold, the operator of the Macraes gold field, led decliners, falling about 3 percent to $2.96 as the price of gold fell.

Vector, the electricity and gas network company, fell 2.9 percent to $2.66. Chorus, the network company spun off from Telecom, fell 2 percent to $3.36.

"It was pretty weak overnight in America and New Zealand is down on the back of that," said Mark Lister, head of private wealth research at Craigs Investment Partners. "People are waiting for earnings season in the US."

Auckland International Airport, the nation's busiest gateway, dipped 0.6 percent to $2.485 after saying it had signed a memorandum of understanding with Garuda Indonesia which may lead to the resumption of flights between the two countries for the first time in six years.

Shares in A2 Corp were unchanged at 51 cents after the alternative milk company signed a supply agreement with Canterbury-based Synlait Milk. The deal will source A2 milk from accredited Canterbury farmers, and will be processed into A2 brand powders as it seeks to expand its product range into infant formula which it wants to sell into Asian markets.

Fisher & Paykel Healthcare extended its decline to a new month-low, as it fell 0.9 percent to $2.14. The breathing respirator maker has been struggling to contend with a persistently high kiwi dollar, as it records more than half its earnings in US dollars.

The kiwi traded at 81.93 US cents at the close of local business hours.

Shares in Diligent Board Member Services were unchanged at $3.50 ahead of the company’s annual meeting in Auckland tomorrow. The company will report its first-quarter sales after turning profitable on an operating basis in the last financial year.

Kathmandu, the outdoor equipment chain, fell 2.4 percent to $1.60. Pumpkin Patch, the children's clothing retailer, declined 2.4 percent to $1.60.

"People are glass half empty at the moment when it comes to the retail sector because they are so economically sensitive," Lister said.

Telecom climbed 1.6 percent to $2.53 and Fletcher Building gained 0.2 percent to $6.21.

Contact Energy, the nation's biggest listed power company, fell 0.6 percent to $4.75.