Stocks fall on Mainzeal jitters

Last updated 18:36 07/02/2013

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The New Zealand sharemarket fell sharply on its first day back after the national Waitangi Day holiday, with the collapse of unlisted construction firm Mainzeal keeping investors cautious.

Blue chip stocks Telecom and Fletcher Building paced decliners, while SkyCity Entertainment Group rose.

The NZX 50 Index fell 16.7 points, or 0.4 per cent, to 4,195.24.

Within the index, 25 stocks fell, nine rose, and 16 were unchanged. Just over 50 million shares changed hands on the day, worth $202 million in turnover.

Telecom, the country's biggest phone company, fell 2.1 per cent to $2.31 amid a pull back in investors' appetite for risk assets.

Fletcher Building, the construction giant, fell 0.8 per cent to $8.90 amid the uncertainty surrounding Mainzeal.

The collapsed firm is New Zealand's third biggest builder and was heavily involved in the Christchurch rebuild – a process Fletcher is overseeing.

Pumpkin Patch, the children's clothing company, fell 2.9 per cent to $1.33.

Xero, the cloud accounting platform provider, fell 2.7 per cent to $6.84.

Guinness Peat Group, the investment firm, was unchanged at 60c after announcing it had sold out of aluminium fabrication group Capral for A$40.4m.

SkyCity paced gainers on the NZX50, with the firm's share price gaining 1.5 per cent to $4.03 on the day.

Vector, the Auckland gas and electricity distribution monopoly, rose 1.4 per cent to $2.86.

Nuplex Industries, the chemical manufacturer, rose 0.9 per cent to $3.37.

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