MARKET CLOSE: Shares fall as some investors take profits, ASX 200 drops; Fletcher, banks decline

New Zealand shares fell as the soaring S&P/NZX 50 Index prompted some investors to take profits and as weak commodity prices weighed on the Australian market. Fletcher Building, Westpac Banking Corp and Australia & New Zealand Banking Group led the decline.

The NZX 50 fell 27.79 points, or 0.4 percent, to 6,715.81. Within the index, 17 stocks fell, 22 rose and 11 were unchanged. Turnover was about $208 million.

Stock markets fell across Asia amid concerns falling prices for crude oil and other commodities signal weak global demand and across the Tasman, the S&P/ASX 200 Index was down 1.6 percent in afternoon trading.

Dual listed Fletcher Building fell 2.9 percent to $7.60. ANZ Bank dropped 1.6 percent to $25.10 and Westpac fell 0.9 percent to $32.80. Fisher & Paykel Healthcare, another company often held by Australian institutional investors, fell 2.1 percent to $9.65.

"The biggest movers are stocks more linked to the Australian market," said Greg Easton, an adviser at Craigs Investment Partners. "Commodity prices kick them around."

SkyCity Entertainment Group, which has casino and hotel complexes in Adelaide and Darwin, fell 1.4 percent to $4.98.

Easton said there were conflicting forces at play in the New Zealand stock market. With the market at record highs, some investors are seeing "a great opportunity to bank some profits". At the same time, low interest rates "were pushing money into the market again" and anecdotally there was "still a lot of cash out there looking for a home."

Heartland Bank declined 1.6 percent to $1.19.

Spark New Zealand fell 1.2 percent to $3.44. The telecommunications retailer says it has now received all regulatory approvals for its planned purchase of a block of wireless spectrum for $9 million. Summerset Group, the retirement village operator, declined 1.1 percent to $4.33 after reporting that first-quarter sales of 121 occupation right agreements were down from 125 a year earlier, although it is on track to build 400 units this year.

Diligent Corp rose 0.6 percent to $7.11, with about $43 million of shares changing hands ahead a meeting to approve a takeover of the company next week. Easton said the deal is expected to get through with support from US investors while some New Zealanders were selling ahead of the transaction because of advice it would be treated as a taxable event like a dividend payment.

Mainfreight was the biggest gainer, rising 1.4 percent to $15.96. Precinct Properties New Zealand rose 1,2 percent to $1.29, leading gains among some property stocks, and Auckland International Airport climbed 1.1 percent to $6.35. Air New Zealand rose 1.1 percent to $2.88.

Outside of the benchmark index, Briscoe Group was unchanged at $3 after the retailer said it would seek a $100,00 increase in the pool for directors fees to give it the ability to increase its board.

Mercer Group rose 3.5 percent to 3 cents after the indebted stainless steel fabricator, settled an insurance claim with AIG over damage to a property in the Christchurch earthquakes in 2010 and 2011. AIG is to pay $2.7 million plus GST to Mercer.

(BusinessDesk)