New Zealand shares fell, with the biggest company on the bourse, Fletcher Building, sinking to a two-and-a-half year low on speculation further delays to the rebuild of Christchurch may force it to lower earnings guidance.
The NZX 50 Index declined 19.26, or 0.6 per cent, to 3228.01.
Within the index, 21 stocks fell, 17 rose and 12 were unchanged. Turnover was $57 million, up from Monday's even-more subdued $38 million.
Fletcher, which has the government mandate to oversee the reconstruction of Christchurch, fell on Tuesday 1.9 per cent to $5.80, the lowest since March 2009. Building consents dropped in November, government figures on Tuesday showed.
"The market is surmising that there will be an announcement that there will be a slight downgrade - we keep looking at Christchurch and it's getting pushed back and back," said Alan Moore, a director at Milford Asset Management.
"Where there is uncertainty and rumour it does undermine the shares."
Contact Energy was the biggest decliner, falling 3.8 per cent to $5.10.
Air New Zealand closed unchanged at 87.5 cents, having reversed an earlier decline as Prime Minister John Key joined a chorus congratulating the airline for winning Air Transport World's airline of the year award for the second time in three years.
The airline, of which the government owns about three-quarters, is earmarked for a sell-down this parliamentary term.
Pacific Brands was untraded in New Zealand and surged 15.2 per cent to 65 Australian cents on the ASX after the underwear company confirmed it is in takeover talks with KKR.
Horizon Energy Distribution was untraded at $3.40 after chairman Rob Tait has advised shareholders not to sell their shares after many were approached with a conditional offer to sell at a below-market price by Zero Commission NZ.
NZN