Market close: shares mixed - Fonterra units down as farmers sell, Chorus gains

New Zealand shares were mixed. Fonterra Shareholders' Fund units fell after a restriction ended on farmers selling and Mighty River Power dropped to a post-float low, while Chorus rose from a record low.

The NZX 50 Index edged up 1.748 points, or 0.04 percent, to 4455.334. Within the index, 22 stocks rose, 19 fell and nine were unchanged. Turnover was $164 million - less than the average daily trade across the NZX equity and debt markets last month of $218 million.

Fonterra declined 3.2 percent to $7.30 as $20.2 million of the units changed hands. Farmers became eligible to sell more of their dry shares from today.

"It seems to have found a level around $7.30," says Matt Goodson, managing director at Salt Funds Management.

The market has suffered some indigestion, with a number of issues coming to market, he says. "Market volatility is frustrating but it creates opportunities."

Mighty River Power fell 1.7 percent to $2.30, the lowest close since the government sold down its holding last month at $2.50 apiece, below the indicative price range of between $2.35 and $2.80.

Chorus rose 3.7 percent to $2.55, having yesterday touched the lowest level since it was spun off from Telecom in 2011. Telecom fell 1.1 percent to $2.29.

Among companies coming to market, Jade spin-off Wynyard Group released a prospectus today showing it wants to raise as much as $70 million selling shares between $1.10 and $1.65. It is forecasting losses this year and next.

"There remains a very deep pipeline of things coming to market or hoping to come to market," Mr Goodson says.

SLI Systems, which listed last week after an IPO at $1.50, fell 5.5 percent to $2.08, ending big gains this week.

Bathurst Resources jumped 11 percent to 21 cents before the mining company asked for a halt in trading after the High Court in Christchurch turned town an appeal of its resource consent to mine the Denniston Plateau on the West Coast.

Turners & Growers was unchanged at $1.60 after minority shareholder Scales Corp returned to profit in calendar 2012, with earnings of $13.6 million. Scales took a 10 percent stake in T&G to block a full takeover by Germany's BayWa, saying it was keen on merging its Mr Apple unit with T&G's Enza marketing segment.

Air New Zealand rose 0.3 percent to $1.475 after it lifted its stake in Virgin Australia to 23 percent from 19.99 percent and said it may creep higher.

New Zealand's state-controlled airline paid about $A72 million for the shares, with the largest purchase being for 77.4 million shares at 47.68 Australian cents apiece, or $A36.9 million under a forward transaction with Gresham Property Investments.

Fletcher Building gained 1.2 percent to $8.39 after the construction company's director Alan Jackson quit his role as chairman of Housing New Zealand over a potential conflict of interest.

Last week Housing Minister Nick Smith unveiled a $170 million project to replace 700 earthquake-damaged Housing NZ properties in Christchurch, which Fletcher may bid for.

(BusinessDesk)