NZ shares fall, paced by Fletcher, Vector

OceanaGold, which operates the Macraes gold mine, was down 3.2 per cent. Photo / NZPA

New Zealand shares fell, paced by some of the biggest companies on the bourse Fletcher Building, Vector, Telecom and Ryman Healthcare. Fisher and Paykel Appliances rose after its independent directors urged shareholders to reject Haier's takeover offer.

The NZX 50 Index rose 7.61 points, or 0.2 per cent, to 3881.99, the highest since January 6, 2008.

Within the index, 19 stocks fell, 16 rose and 14 were unchanged. Turnover was about $124 million.

Fletcher Building, New Zealand's largest construction company, declined 1.2 per cent to $7.25.

Telecom, the largest company on the NZX, fell 0.6 per cent to $2.39. Ryman Healthcare, New Zealand's largest retirement village operator, shed 1 per cent to $4.08.

Vector, the Auckland gas, electricity and telecommunications networks owner, dropped 1 per cent to $2.86.

The decline was led by OceanaGold, which operates the Macraes gold mine near Dunedin, down 3.2 per cent to $3.93.

The gainers were led by Fisher & Paykel Appliances, the manufacturer of dishwashers, ovens and fridges, up 3.7 per cent to $1.25.

Grant Samuel values FPA at between $1.28 and $1.57 a share in its independent valuation report, above Haier's $1.20-a-share offer.

Prior to Haier unveiling its offer last month the stock hadn't traded as high as $1.20 since September 2008.

The independent directors "unanimously recommended that shareholders do not accept Haier's takeover offer".

"Buyers are hoping that Haier will be forced to raise its bid," said James Smalley, client adviser at Hamilton Hindin Greene.

"You'd think they would want 90 per cent so they will have to balance out the cost - the stock is trading up accordingly."

Air New Zealand, the national carrier slated for a Government selldown, rose 2.9 per cent to $1.25.

"You have to keep in consideration that it is a stock that has been earmarked for a sell down," Smalley said.

"It is doing well in a tough market - they are bucking the trend with airlines."

Heartland New Zealand, the lender formed from the merger of Pyne Gould's Marac Finance and the Canterbury and Southern Cross building societies, increased 3 per cent to its highest level since June 29 at 69c.

PGG Wrightson, the New Zealand rural services group controlled by China's Agria, rose 2.9 per cent to 36c after winning government backing for a $14.6 million research programme that aims to improve seed quality and plant species.

Goodman Fielder, the food ingredients manufacturer whose brands include Edmonds baking products and Vogel's bread, gained 1.6 per cent to 65c.