Market close: shares fall as Budgets loom, MRP within cent of IPO price

New Zealand shares fell as recently listed Mighty River Power continued to dominate trading, dropping to within 1 cent of last week's offering price. PGG Wrightson shed more than 10 percent after cutting its guidance.

The NZX 50 Index declined 25.78 points, or 0.6 percent, to 4645.85. Within the index, 29 stocks fell, nine rose and 12 were unchanged. Turnover was $163 million.

Mighty River fell 3.8 percent to $2.51 as 19.9 million of its 1.4 billion shares changed hands, valued at $51 million. Fletcher Building gained 0.7 percent to $8.61 and was the second-most most traded at about $44 million of stock.

Greg Easton, an adviser at Craigs Investment Partners, says some retail investors had picked up more stock that they'd expected in the IPO, after the company mostly confined its scaling to fund manager allocations.

"Initially, there was talk that allocations would be scaled a little and they were not."

"A bit of the gloss is coming off today," Mr Easton said of trading across the NZX today. "Maybe it is in anticipation of the (NZ) Budget on Thursday and the Australian budget" after the close of trading today.

Telecom declined 1.1 percent to $2.675. Sky Network Television, the pay-TV operator, fell 2.2 percent to $5.47

Air New Zealand, the government-controlled airline slated for further sell-down, rose 2 percent to $1.53, leading stocks higher after announcing ex-Foodstuffs boss Tony Carter as chairman and as chief executive Christopher Luxon briefed investors on his strategy.

Infratil rose 0.4 percent to $2.44 after posting results showing writedowns on its UK airports, which it is trying to sell in a difficult market, eroded net profit. Pre-tax earnings were within the range it had previously given.

Wrightson, the nation's largest rural services company, fell 10 percent to 35 cents after it said earnings before interest, tax, depreciation and amortisation will be between $40 million and $48 million in the 12 months ended June 30, down from $55 million in 2012. It blamed dry conditions in New Zealand and Australia.

"Investors have been waiting for five years for this company to turn around," Mr Easton says.

Warehouse Group fell 1.6 percent to $4.30 after government figures showed retail sales rose a smaller-than-expected 0.5 percent, seasonally adjusted, to $17.62 billion in the three months ended March 31, from a revised quarterly pace of 1.9 percent in the December quarter.

Hallenstein Glasson Holdings, the clothing chain, fell 0.9 percent to $5.60.

(BusinessDesk)