Market close: shares fall ahead of key US, China info - Telecom, A2 drop

New Zealand shares fell, joining generally weaker equity markets across Asia on concern key employment data from the US and inflation, retail sales and industrial production figures from China.

Telecom and A2 Corp paced the decline.

The NZX 50 Index fell 15.476 points, or 0.3 percent, to 4439.858, the lowest close since mid-April. Within the index, 25 stocks fell, 15 rose and 10 were unchanged. Turnover was about $118 million.

Non-farm payrolls figures due in the US early tomorrow morning (NZT) are expected to show the world's biggest economy stacked on 170,000 jobs in May, according to a Reuters survey, though ADP data for the private sector, out yesterday, missed estimates.

Chinese retail sales may have gained 12.9 percent last month while industrial production climbed 9.3 percent.

Data out of Asia and some from the US is "creating question marks about the outlook", says Angus Gluskie, chief investment officer at White Funds Management in Sydney.

On the NZX, Telecom declined about 2 percent to $2.24, the lowest close since March 26. Fletcher Building, the nation's biggest construction and building products company, fell 1.2 percent to $8.29.

A2 Corp, the milk company targeting the Chinese market, fell 4.4 percent to 65 cents. Pumpkin Patch, the children's clothing chain, fell 3.6 percent to $1.06.

Australia & New Zealand Banking Group fell 3.2 percent to $32.20, leading declines among Australian companies whose shares also trade on the NZX.

Lyttelton Port was unchanged at $2.95 after the Christchurch hub said it would spend more than $16 million on a crane to help it deal with a record 350,000 containers in the year ending June 30.

Dorchester Pacific gained 3.5 percent to 30 cents after it raised $4.1 million in a placement to institutions at 25 cents apiece. The financial services firm issued 16.3 million new shares, while cornerstone investors Bakery Business and Matthew Harrison sold 12.5 million and 6.2 million shares into the placement respectively.

The transaction follows on from Dorchester investors electing to exercise 133.7 million out of a total 150 million options to buy shares at 12.5 cents each, raising $16.75 million.

Air New Zealand rose 2 percent to $1.505 after the national carrier said its annual earnings would be at the top end of guidance, having agreed to settle a long-running air cargo cartel case with the Commerce Commission.

The airline will pay a $7.5 million penalty, which needs to be ratified by the High Court, making it the biggest fine handed out in the case. Air NZ has already spent $10 million defending the claim.

TeamTalk fell 3.9 percent to $2.50 after the owner of the CityLink broadband network cut its earnings guidance, saying it expects second-half earnings before interest, tax depreciation and amortisation a "little lower" than $5.14 million.

TeamTalk's board has decided to review its management structure and resource the company in line with its findings to help the transition into a larger group.

(BusinessDesk)