MARKET CLOSE: Shares fall, led by Steel & Tube; Meridian falls

 New Zealand shares fell, led by Steel & Tube Holdings, as investors took advantage if recent market gains to reduce their holdings. Spark New Zealand, Contact Energy and Meridian Energy paced the decline.

The NZX 50 Index fell 58.744 points, or 1 percent, to 5846.663. Within the index, 33 stocks fell, 11 rose and six were unchanged. Turnover was $265 million.

The benchmark index has gained 6.1 percent since the last of year pushed to record highs by investors seeking income paying equities. Today, in the absence of market-leading news, investors looked to pocket some of the market's recent gains. Steel & Tube, the industrial metal manufacturer, fell 4.4 percent to $2.86. SkyCity Entertainment Group, the casino operator, dropped 2.9 percent to $4.04. Ebos Group, the healthcare and animal care products company, fell 2.2 percent to $10.90. Spark New Zealand, formerly Telecom Corp, fell 2.2 percent to $3.075.

"The overriding theme over the last couple of weeks is that the market has really gone quiet," said Bryon Burke, head of equities at Craigs Investment Partners. "The prices have moved higher and are sitting at a higher level, and we haven't had a major sell off yet. We're just in a funny hiatus at the moment."

Meridian fell 3.8 percent to $2.025. The partially privatised energy company listed on the bourse in October 2013, with the shares offered in instalment receipts to sweeten the offer, with $1 upfront and the promise of full entitlement to dividends, and the remaining 50 cents in May 2015. Some investors have been selling the receipts ahead of the second payment to book profit on the 20 percent gain so far this year, brokers said.

"That's some retail selling in that stock ahead of the next capital payment," Burke said.

Pacific Edge was the best performer on the benchmark index up 1.5 percent to 69 cents. The biotech company was awarded a Japanese patent for its non-invasive stomach cancer test.

Kathmandu Holdings, the outdoor good retailer, rose 1.2 percent to $1.74. A pick up in retail sentiment in Australia, its largest market, has lifted the stock from its lows, Burke said.

Tower fell 1.3 percent to $2.28. The listed general insurer named Brett Wilson as chief financial officer, following the departure of Michael Boggs last month.

Outside the benchmark index, Wynyard Group rose 2.9 percent to $1.80. The security software developer used by law enforcement officials have hired Louis Grever, a former senior official at the US Federal Bureau of Investigation, to its board.

Outside the stock market, Fliway Group, the transport and logistics company, has been priced at $1.20 a share in the bookbuild for its initial public offering, the bottom end of the indicative range, people say. Existing shareholders Duncan and Gretchen Hawkesby will retain 54 percent of the South Auckland-based company, several market participants told BusinessDesk.

(BusinessDesk)