MARKET CLOSE: NZ shares snap 12-day rally

BUSINESSDESK: New Zealand shares snapped a 12-day rally as some investors locked in a 6.4 percent gain. Fletcher Building, Trade Me and Telecom – some of the biggest gainers this month, paced today’s decline.

The NZX 50 Index 50 dropped 28.71 points, or 0.8 percent, to 3505.01.

Within the index, 27 stocks fell, 10 rose and 13 were unchanged. Turnover was $179 million, making it one of the busiest days this year.

The benchmark index fell from a nine-month high, having joined a global rally this week on signs of renewed growth in the US.

"It was too good to last forever,” said Bryon Burke, head dealer at Craigs Investment Partners. "People still have a positive view of the New Zealand market. I can't see any major pull back.”

Telecom fell 2.8 percent to $2.46, declining from the highest level since the spin-off of its Chorus network business in November.

Trade Me, the online auction site, fell 0.9 percent to $3.39, having reached $3.42 yesterday, the highest level since its initial public offering.

Fletcher Building, which will be a major beneficiary of the rebuilding efforts after the Canterbury earthquakes, fell 1.3 percent to $6.89, having closed at a five-month high of $6.98 yesterday.

New Zealand Oil & Gas fell 3.9 percent to 75 cents. Today the oil and gas company announced the purchase for $US3 million of a 15 percent interest in the inshore southern Taranaki oil and gas prospect, Kaheru, from ASX-listed AGL, which acquired the stake when it took over Mosaic Oil in 2010.

Zintel Group rose 5 percent to 42 cents adding to last month’s surge when the business phone company was offered more for its Australian unit than the company’s entire market value.

The Auckland-based company said today it will return 20 cents a share to investors via a capital repayment of 9.75 cents a share and pay a special dividend of 10.15 cents, fully imputed. Last month, the company closed the sale of its Australian toll-free calling business for $15.3 million to Delaware-based j2 Global.

Tourism Holdings, the campervan rental company, was unchanged at 63 cents. Utilico Investments, a UK investor managed by Infratil director Duncan Saville’s ICM, has bought a 7.1 percent stake the company.

Guinness Peat Group, the investment company that’s winding down its portfolio, gained about 1 percent to 53 cents. A week ago, BT Funds Management disclosed a 3.14 percent holding in the company.

Paul Harrison of BT Funds Management expressed confidence in the value of key assets such as the Coat’s global threads and yarns business and said any trend towards higher global interest rates would reduce pension liabilities which stretch well into the future.