MARKET CLOSE: Shares fall, led by Metro Glass; Spark, Fletcher sold in offshore exodus

New Zealand shares fell, led by Metro Performance Glass after it missed prospectus sales forecasts. Spark NZ and Fletcher Building declined as offshore investors repatriated funds back home.

The NZX 50 Index fell 37.917 points, or 0.7%, to 5757.938. Within the index, 28 stocks fell, 14 rose and four were unchanged. Turnover was $135 million.

Metro Glass dropped 4.9% to $1.75. The company, which has more than half of New Zealand's glass processing market, reported profit ahead of its prospectus forecast at $9.6 million in the eight months ended March 31, while revenue was 2.4% lower than expected at $115 million, which it attributed to capacity constraints in the building industry. Chairman John Goulter said delays in both residential and commercial markets could weigh on Metro Glass's earnings for the next six months, and make achievement of its prospectus revenue target "challenging," with a lower peak in construction work, even if it went on for longer.

"It's more its lack of certain guidance with its outlook," said James Smalley director at Hamilton Hindin Greene. "It's the glass half-empty/half-full, because what you've got is going to be longer but not as high," he said, referring to the construction pipeline.

Possible rate hikes in the US dampened investors' appetite for local equities, with foreign investors typically buying New Zealand stocks for their relatively high yield. Spark, formerly Telecom Corp, declined 3.8% to $2.635, its lowest level in a year. Fletcher Building, the construction and building supplies firm, fell 0.5% to $8.60. Ryman Healthcare, the country's largest listed retirement village operator, slipped 1.2% to $7.71.

"Spark, with its liquidity and size, is generally the one that's got the most exposure to foreign investors," Mr Smalley said. "What we're seeing is investors repatriating a bit of cash back to the US before any potential rate rise. It seems to be a lot of the large cap-stocks that have come in for selling."

Mainfreight rose 0.3% to $15.95. The transport and logistics group beat its annual profit guidance and said earnings will rise further in the coming year. The Auckland-based company said profit excluding abnormal items rose 7.7% to $83.5 million in the year ended March 31, ahead of its forecast range of $80 million to $83 million.

SkyCity Entertainment Group gained 1.8% to $4.43. The listed casino company says group revenue is up 17.9% to $415.6 million for the second half of the 2015 year to date, accelerating from the pace of sales growth posted in the first half. Updating the market, it said it won't know for another month or so if resource consents for the New Zealand International Convention Centre will be non-notified or not, with a notified consent adding six months to the process.

Outside the benchmark index, Turners was unchanged at 31c. The lender and insurance company, formerly known as Dorchester Pacific, more than doubled annual profit to $18.1 million, beating guidance, reflecting its car auction house acquisition and its financing businesses performing above their forecast.

Energy Mad dropped 7.7% to 6c. The unprofitable lightbulb maker, which counts NZX's SuperLife as its biggest shareholder, narrowed its annual loss in the 2015 financial year after stripping out costs, although the accounts were still tagged by the company's auditor over its ability to generate cash. The Christchurch-based company reported a net loss of $3.2 million compared to a loss of $5.7 million a year earlier.

(BusinessDesk)