Market close: Shares fall as earnings season approaches

BUSINESSDESK: New Zealand shares fell, led by Cavalier Corp, as investors wait for corporate guidance later this month, when earnings season kicks off.

Heartland NZ and PGG Wrightson led gainers after Pyne Gould Corp sold down its stakes in the two companies amid concern over the wealth manager's related party loans.

The NZX 50 Index fell 5.49 points, or 0.2% to 3478.7, snapping four days of gains. Within the index, 16 stocks fell, 18 gained and 16 were unchanged. Turnover was $107.4 million.

Carpet-maker Cavalier led the bourse lower, falling 3.9% to $1.49, while Telecom, the country's biggest listed company fell 1.4% to $2.45.

"Markets are a little bit nervous and cautious, and need guidance to get a steer on how companies are seeing the world," Craig Brown, senior investment analyst at OnePath New Zealand, said.

Traders are waiting for earnings season later this month for an update on how firms are performing, he said.

Fisher & Paykel Healthcare, which makes breathing respirators, fell 2% to $2.01, while retailer Warehouse dropped 2.3% to $2.52.

The bulk of today's activity came from Pyne Gould's sell-down in would-be bank Heartland and rural services firm PGG Wrightson for a combined $15.4 million.

Heartland stock rose 4.1% to 51 cents, the biggest gainer on the day, while PGG Wrightson shares climbed 3.3% to 31 cents.

The sale comes two days after the wealth manager lost a judicial bid to keep suppressed the details of an investigation over related-party lending between Torchlight Fund No 1 LP and Perpetual Trust. Pyne Gould shares fell 6.9% to 27 cents.

The sale reduced downward pressure on the price of Heartland and Wrightson shares as more stock is sold into the open market, Mr Brown said.

Kathmandu extended its rally today, gaining 2.7% to $1.50, and has surged 18% since June 29.

Mr Brown said the prospect of a colder winter will be helping the outdoor equipment retailer, which tends to perform better during the winter season.

Summerset gained 5.5% to $1.72 after the retirement village operator and developer said first-half sales beat its initial public offer forecasts.

Shares in Renaissance Corp sank 5.3% to 14.2 cents after the company's shareholders agreed to sell its IT distribution businesses for about $2.9 million.

Pharmacybrands was unchanged at 99 cents after the retail pharmacy and medical centre firm put forward a proposal to lift the pool for directors' fees to $380,000 from $310,000, its first increase in seven years.