New Zealand shares fell, pushing the benchmark NZX 50 Index to the lowest level in a month, as investors drove down Fletcher Building in the wake of its earnings downgrade last week.
The NZX 50 fell 37.85, or 1.1 per cent, to 3279.10. Within the index, 27 stocks fell, six rose and 17 were unchanged. Turnover was a lower-than-average $77.1 million.
Equities markets fell in Europe and the US overnight, setting a negative tone for the local market, after Germany's finance minister played down the prospects of a breakthrough on Europe's debt crisis at this weekend's European summit.
Fletcher sank 5.8 per cent to $6.30, the lowest since May 2009, bringing its tumble since last week's reduced guidance to 20 per cent.
On October 12, the nation's biggest construction company said profit in the six months to December 31 will fall about 10 per cent and annual earnings, excluding one-time items, won't grow.
Still, it is rated "out-perform" based on the consensus of analysts polled by Reuters, with a price target of $8.50.
"There's a reasonable amount of foreign selling in the stock," said Grant Williamson, a director at brokerage Hamilton Hindin Greene.
Delays in the Christchurch rebuild after the earthquakes is having "a pretty serious impact on slowing things down" and in both New Zealand and Australia, construction and building are "very sluggish."
Among other major stocks, Contact Energy fell 1.8 per cent to $5.63.
Fisher & Paykel Appliances rose 1.1 per cent to 47 cents, the biggest percentage gain on the index.
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