MARKET CLOSE: Shares fall; Air NZ, MetroGlass, Fletcher decline

New Zealand shares fell as investors looked to crystallise gains after the benchmark index booked its best month since 2009. Air New Zealand, Fletcher Building and Metro Performance Glass declined.

The S&P/NZX 50 Index slipped 2.53 points, or 0.04 percent, to 5983.84. Within the index, 28 stocks fell, 16 rose and six were unchanged. Turnover was $136 million.

The NZX 50 rose about 7 percent in October, the biggest monthly gain since July 2009, touching new records as volatility in international markets abated, and renewed demand for equities as in a low interest rate environment. Today investors sold stocks as they looked to secure profits from recent gains and looked ahead to the coming earnings season to justify the rise.

Metro Glass led the benchmark index lower, down 3.3 percent to $1.48, having climbed 13 percent in October. Air NZ fell 2.4 percent to $2.84, having generated a 19 percent gain last month to be the second best performer on the benchmark. Fletcher Building slipped 1.7 percent to $7.33 after October's 9.7 percent gain. Kathmandu Holdings, the outdoor goods retailer which advanced 12 percent last month, fell 1.3 percent to $1.55. Ebos Group, the animal and healthcare products company which gained 9.6 percent in October, fell 0.6 percent to $13.57.

"It's 7 percent up, which is an amazing performance," said Shane Solly, director at Harbour Asset Management. Now there was "a period of pause. We've got some companies starting to report in the coming next few weeks. We've gone through a period of time where the New Zealand economy has slowed and then started to pick up again, so the market will be watching carefully as to what companies say in terms of outlook statements."

Westpac Banking Corp declined 2.4 percent to $32.37. The lender's New Zealand division lifted annual earnings 6 percent to $916 million as it ceded market share in the hotly contested mortgage market to protect margins, which lag behind its local peers. The Australian parent reported a 3 percent increase in cash earnings to A$7.82 billion. Australian New Zealand Banking Group fell 2 percent to $28.10.

Auckland International Airport, the country's biggest gateway, rose 2.7 percent to $5.40. The company wants to raise $100 million through a seven-year bond issue, a week after lifting plans for capital expenditure, and as another debt issue nears maturity.

Vital Healthcare Property Trust, the hospital investor, was the best performer on the benchmark index, advancing 4.3 percent to $1.835.

Units in Fonterra Shareholders' Fund, which give holders access to Fonterra Cooperative Group's dividend stream, rose 0.2 percent to $5.39. The world's largest dairy exporter reaped a 25 percent gross gain on its two-year investment in Australia's Bega Cheese shares, which jumped to a record last week after announcing a partnership with Blackmores that will compete with the New Zealand dairy exporter in China's infant formula market.

Spark New Zealand, the telecommunications provider, advanced 0.9 percent to $3.39.

Outside the benchmark index, Abano Healthcare fell 0.5 percent to $8.25. The medical and dental centre investor expects first half earnings to decline as much as 14 percent as an expanding exposure to the cooling Australian economy weighs, even as its dental network grows and audiology unit improves. Net profit in the six months ending November 30 is expected to be between $3 million and $3.6 million, down from $3.5 million a year earlier.

Augusta Capital was unchanged at 95 cents. The property investor and fund manager has agreed to buy a Christchurch industrial property for $39.5 from an undisclosed seller, which it plans to offer to investors through a syndication later this month.

Blis Technologies last traded at 2.6 cents, prior to being put into a trading halt as the probiotic products maker investigates a quality issue in one of its lines that's reached a foreign market. The company said it was "aware of a quality issue in a product line in one of its international markets" and investigating "this issue to determine its scale and ascertain any impact on BLT's financial circumstances." The halt is expected to be in place until the close of trading tomorrow while Blis completes the investigation.

(BusinessDesk)