MARKET CLOSE: Shares fall, paced by Contact, Meridian, MRP

New Zealand shares fell, paced by Contact Energy, Meridian Energy and MightyRiverPower, as investors weighed the outlook for the energy sector. Westpac Banking Corp fell after reporting first-half earnings.

The NZX 50 Index fell 30.322 points, or 0.5 percent, to 5767.078. Within the index, 26 stocks fell, 11 rose, and 13 were unchanged. Turnover was $80 million.

The NZX Energy Index has gained 33 percent over the past 12 months, fuelled by investors hunt for income paying equities. Last week government-controlled energy company Genesis Energy surprised markets saying it would miss its prospectus estimate from March last year, as it lowered its annual earnings guidance, spooking investors in the sector. Contact declined 1.9 percent to $5.57. Meridian dropped 3 percent to $2.45 and MRP slipped 1.7 percent to $2.975.

"The Genesis profit downgrade was a timely reminder while it is quite a defensive sector it's not without risk, it does have earnings volatility," said Mark Lister, head of private wealth research at Craigs Investment Partners. "All of these companies are at the mercy of weather, rainfall, demand, oil prices in the case of Genesis. Still a very safe, defensive sector but not without risks."

Genesis was unchanged after last week's drop at $1.925.

"It looks like Genesis shares might have found a little bit of a bottom for the time being," Lister said.

Dual-listed Westpac led the benchmark index lower dropping 3.7 percent to $36.90 on the NZX, and was down 3.4 percent to A$35.50 in afternoon trading on the ASX. The Australian parent reported a small dip in first-half profit to A$3.61 billion in the six months ended March 31, from A$3.62 billion a year earlier, with cash earnings flat at A$3.77 billion, while its New Zealand unit said cash earnings rose 2 percent $441 million, from $432 million a year earlier.

NZX fell 1.7 percent to $1.14. The stock market operator has bought iFarm, the livestock market information business, for an undisclosed sum from owners Jon Sherlock and Peter Fraser and will add the firm to its AgriHQ data business.

Warehouse Group declined 1.8 percent to $2.74. New Zealand's largest listed retailer may sell as much as $125 million of five-year bonds to refinance $100 million of bonds maturing next month, and for general corporate purposes.

Property For Industry fell 0.9 percent to $1.585 after New Zealand's only listed company specialising in industrial property said will pay 1.75 cents per share for its first quarter dividend and has reinstalled its dividend reinvestment scheme.

Spark New Zealand, formerly Telecom Corp, slipped 1.3 percent to $2.94. Fletcher Building, the construction and building supplies firm, rose 0.1 percent to $8.31.

Outside the benchmark index, SeaDragon dropped 5.3 percent to 1.8 cents. The company, which manufactures fish oil for health supplements, said chairman Doug Wilson and chief executive Ross Keeley will leave the company to focus on other interests.

(BusinessDesk)