MARKET CLOSE: NZ shares mixed amid slowing Chinese growth

BUSINESSDESK: New Zealand shares were mixed after slower than expected Chinese growth sapped optimism emanating from the start of US earnings season. 

New Zealand Refining led gainers.

The NZX 50 Index rose 0.7 points, or zero percent, to 3487.16. Within the index 23 stocks gained, 16 fell, and 11 were unchanged.

Turnover was $101.6 million.

The local market was flat as China’s first-quarter economic growth of 8.1%from Q1 2011 fell short of the 8.4% forecast by economists, and dimmed upbeat sentiment from the stronger than expected start to Wall Street’s quarterly earnings season.

“The New Zealand market is a little bit disappointing given the 1% gain in both Europe and America,” said Bryon Burke, head dealer at Craigs Investment Partners.

“The tone is still relatively positive.”

With a shareholder vote looming on April 27 on its latest expansion plans, New Zealand Refining Company led gainers, up 3.7% to $2.80, followed by PGG Wrightson up 2.6% to 39 cents and Kathmandu up 2.5% to $1.64.

Fletcher Building, the biggest listed construction company, rose 0.8% to $6.20, its second gain after six days of declines when investors were getting nervous about Australia’s deteriorating residential housing market and the ongoing delays to Christchurch’s rebuild.

Trade Me rose 1.2% to $3.47 after the online auction site cut a deal with e-commerce software company ChannelAdvisor to enable Australian retailers to sell their wares into New Zealand.

Heartland New Zealand shed some of yesterday’s gains, leading decliners as it fell 1.9% to 52 cents, while Ryman Healthcare dropped 1.6% to $3.13 from a record high $3.18.

F&P Healthcare extended its decline, falling 0.5 % to $2.16 as the New Zealand dollar stayed at persistently high levels amid the prospect of low US interest rates until 2014.

The manufacturer derives more than half of its revenue in US dollars.

“Sentiment is weighing on the stock given the rise in the dollar, where its earnings are relatively susceptible,” Mr Burke said.

Heavyweight stock Telecom fell 0.8% to $2.49, while Contact Energy dropped 1% to $4.78 and SkyCity Entertainment Group declined 0.5% to $5.25.

Shares in Insured Group were unchanged at 15 cents apiece after the Perth-based insurance company called a special meeting for shareholders to approve a $A2.25m capital raising where it plans to ditch its NZX listing and switch to the ASX.