Market close: shares mixed - Tower gains, Port of Tauranga falls

New Zealand shares were mixed, leaving the NZX 50 Index little changed, as investors welcomed Tower's plans to return more capital and companies leading the recent rally, such as Ryman Healthcare, came off their highs.

The NZX 50 rose 0.051 points, for a negligible percentage move, to 4478.25. Within the index, 23 stocks fell, 20 rose and seven were unchanged. Turnover was a lower-than-average $84 million, as a Monday holiday in the US kept markets relatively quiet.

Tower rose 8.8 percent to $1.85, having declined almost 10 percent this year. The insurer that is 34 percent owned by Guinness Peat Group plans to return a further $114.5 million asset sale proceeds to shareholders, adding to $120 million already distributed.

The company made a full-year loss excluding gains from sales of health, life and investment units that have left it as a general insurer.

"Shareholders like the idea they are going to see a further return of capital," says Grant Williamson, a director at Hamilton Hindin Greene. The share price has been drifting off and there is still a question over whether it will have enough scale as a general insurer.

GPG rose 2.2 percent to 47 cents, halting a slide since it signalled last week that resolving its pension obligations in the UK may take longer than expected.

A2 Corp, the milk marketing company, fell 2.9 percent to 67 cents, trimming its gain this year to about a third. Kathmandu, the outdoor equipment chain, dropped 2.7 percent to $2.57.

Ryman Healthcare, the retirement village operator whose shares have jumped 45 percent this year, fell 1.4 percent to $6.41.

Mr Williamson says declines across the market today are a healthy correction for a market that has charted new highs this year.

Part of the decline is driven by overseas investors rattled by the steep decline in the kiwi dollar. "The fundamentals still look pretty healthy for New Zealand."

Mainfreight, the transport group set to post its full-year results tomorrow, rose 0.2 percent to $9.70.

The shares have been on a slide since the company said in March that pretax earnings would be below consensus and little changed from 2012 as it beds down its European businesses.

Mr Williamson says it can take several years to instill company culture into a new business and he is not surprised it is taking longer in Europe. "Normally you buy this stock on weakness."

Port of Tauranga, the biggest export port, fell 1.9 percent to $14.61. Freightways, the courier and data management company, dropped 1.8 percent to $4.35.

Mighty River Power rose 3.4 percent to $2.44, lifting from its post-IPO lows. The government initially sold the shares at $2.50.

Pharmacybrands, the retail pharmacy and medical centre owner, fell 3.6 percent to $1.35. The company lifted profit by about a third in the latest financial year amid a cost-cutting drive.

Fletcher Building rose 0.2 percent to $8.30 and Telecom fell 0.4 percent to $2.28.

(BusinessDesk)