Market close: shares fall - Ebos ex-rights, Warehouse, retailers drop

New Zealand shares fell, as Ebos Group went ex the rights to buy shares in its offer, Warehouse Group led most retailers lower and a brokerage reportedly removed Trade Me from its favoured portfolio.

The NZX 50 Index fell 21.454 points, or 0.5 percent, to 4442.123. Within the index, 34 stocks fell, nine rose and seven were unchanged. Turnover was $99 million.

Ebos Group, the medical, drugs and pet products distributor, fell 9.4 percent to $9.43. The shares trade today ex-entitlements to the company's $149 million, 7-for-20 pro-rata renounceable entitlement offer, which is helping it fund the $1.1 billion acquisition of the Symbion pharmaceutical wholesaler and distributer in Australia. The rights were quoted at $2.93.

Stocks were broadly lower across Asia and Australia's S&P/ASX 200 Index was down 0.6 percent in late afternoon trade.

The NZX 50 reached a record level last month and Wall Street benchmarks have made new highs, though the rally has paused as investors digest mixed global economic and monetary news, including the Bank of Japan's decision to keep it bond buying programme unchanged.

"There's no doubt there is a little bit of wariness about where stock markets have moved to," says Shane Solly, portfolio manager at Mint Asset Management.

The local market has suffered some indigestion with new issues and more to come, and companies exposed to Australia have been weighed down by gloomier economic figures across the Tasman, he says.

Trade Me, the auction website, fell 3.4 percent to $4.60.

Warehouse Group, the biggest listed retailer, fell 1.6 percent to $3.75 after government figures showed consumer spending rose 0.5 percent in May after increased purchases on fuel, food and liquor, and hospitality. Clothing chain Hallenstein Glasson sank 3.6 percent to $5.35 and jewellery retailer Michael Hill International declined 0.8 percent to $1.32.

Fast food operator Restaurant Brands fell 1.2 percent to $2.80 after shedding rights to its 9.5 cents per share final dividend. Tower went ex-dividend and was unchanged at $1.95.

BurgerFuel Worldwide was unchanged at $1.55 after the small-cap fast food franchiser reported a 55 percent jump in annual profit on gains in its Middle East sales. The company said it would not pay a dividend, retaining cash to fund future growth.

Chorus fell 0.4 percent to $2.58 after the end of the first day of a two-day Commerce Commission-led conference on proposal to regulate pricing on the company's ageing copper network.

Chief executive Mark Ratcliffe said the regulatory threat is "weird" to foreign investors. Telecom, which is Chorus' biggest customer, fell 0.9 percent to $2.24.

Infratil edged up 0.5 percent to $2.20. Mr Solly says the prospects of a share sale from its Z Energy chain was in the back of investors' minds.

Fisher & Paykel Healthcare, which gets more than 50 percent of sales in US dollars, rose 2.4 percent to $3.39 as the kiwi remained weaker and the company briefed investors on strategy and products.

(BusinessDesk)