NZ shares fall for fourth day as Fletcher hits 6-month low

Fletcher Building fell 2.9 per cent to $5.71, the lowest close since mid-April. Photo / File

New Zealand shares fell for a fourth session as Fletcher Building dropped to a six-month low and dairy companies A2 Milk and Synlait Milk remained under pressure.

The S&P/NZX 50 index declined 30.94 points, or 0.4 per cent, to 8,642.24. Within the index, 26 stocks fell, 19 gained and five were unchanged. Turnover was $140.3 million.

Fletcher was one of the more active stocks with 2.8 million shares traded, almost twice the normal volume. The stock fell 2.9 per cent to $5.71, the lowest close since mid-April.

Greg Smith, head of research at Fat Prophets, said Fletcher doesn't have the tailwind of a booming building sector, and investors are still waiting on the outcome of the sale of its international business.

"It looks like suggestions the share price bottomed out around $6 in September proved premature," he said.

Synlait led the market lower, dropping 5 per cent to $8.70 on light volumes while A2 declined 1.5 per cent to $10.10. The milk processor and milk marketing firm have been strong performers on the benchmark index over the past two years. They have given up some of those gains in recent months as investors reassess the optimism built into the share price over future earnings.

Chorus fell 1.4 per cent to $4.485 after reaching an arrangement with the government setting price caps until a new regulatory regime comes into effect in 2020. Spark New Zealand, the biggest user of the regulated lines, was unchanged at $3.86. The stock was the most traded today on a volume of 3.8 million.

Z Energy bounced from a 32-month low, rising 0.3 per cent to $5.89 on about three times its average volume at 2.2 million. Prime Minister Jacinda Ardern today ruled out any further regional fuel taxes.

Restaurant Brands New Zealand rose 2.4 per cent to $8.46, after receiving a partial takeover notice last week from Mexico's Finaccess Capital. SLI Systems, which is also under takeover offer, rose 5.4 per cent to 59 cents. Tourism Holdings, which is in talks to sell some of its businesses, increased 0.2 per cent to $5.12. Ebos Group, which is buying out a junior partner in an Australian retail pharmacy chain, advanced 0.5 per cent to $21.40.

Sky Network Television rose 1.8 per cent to $2.32 on moderate volumes. Smith said the pay-TV operator has been recovering as investors regain confidence in its plans to compete more vigorously with online streaming rivals.

Retirement village operators were weaker. Metlifecare declined 1.7 per cent to $5.85, Ryman Healthcare fell 1.6 per cent to $11.60, and Summerset Group dropped 1.2 per cent to $6.52 on more than three times its average volume at 1.1 million shares.

Kathmandu increased 1.1 per cent to $2.67 on 2.9 million shares, more than twice its average volume. Other busy stocks included Contact Energy, which slipped 0.9 per cent to $5.53 on volume of 2.1 million shares. Kiwi Property Group declined 0.8 per cent to $1.33 on 2.9 million shares, Goodman Property Trust was unchanged at $1.53 with 1.2 million shares traded and Auckland International Airport was up 1.3 per cent at $6.90 on volume of 1.3 million.

Skellerup Holdings was unchanged at $2.09 after saying first-quarter earnings were more than 10 per cent higher than a year earlier and annual profitability was expected to improve.

Smith said he was surprised the stock didn't gain on the outlook, although investors are extra cautious in the current environment.

Michael Hill International was unchanged at 72 cents after providing more detail on how it is adopting a new strategy to widen margins.

Steel & Tube Holdings was unchanged at $1.36 after it said a record $1.9m fine for making misleading representations about the testing methodologies used in some steel mesh products wouldn't affect this financial year's result.

NZME was unchanged at 63 cents after it gave up on a planned merger with rival Stuff. The media companies won't appeal the rejection of their merger to the Supreme Court.