Goodman Fielder, Westpac lead sharemarket lower

Kathmandu was among several retailers to make gains. Photo / Natalie Slade

New Zealand shares fell, led by foodmaker Goodman Fielder and Australian lender Westpac after they posted results that disappointed some investors.

Michael Hill gained after lifting profit despite a struggle in Australia.

The NZX 50 index fell 7.42 points, or 0.2 per cent, to 3286.45. Within the index, 22 stocks fell, 17 rose and 11 were unchanged. Turnover was around $89 million.

Goodman Fielder, which has brands including Vogel's bread, declined 6.2 per cent to 61c on the NZX after reporting a 77 per cent slump in first-half profit and announcing it plans to sell assets including Integro and its New Zealand milling units.

Westpac declined 2.8 per cent to $26 on the NZX after the Sydney-based lender said its net interest margin contracted in the first quarter, reflecting higher funding costs and lower Treasury earnings, contributing to a 3.2 per cent decline in cash earnings to A$1.5 billion.

Markets-related income fell by A$200 million in what chief executive Gail Kelly called a "more challenging operating environment".

ANZ Banking Group fell 0.8 per cent to $27.45.

Listed jewellery chain Michael Hill rose 2.3 per cent to 89c after posting an 11.5 per cent increase in first-half sales as improved returns in New Zealand, Canada and the US made up for shrinking margins in Australia.

Outdoor equipment chain Kathmandu rose 2.2 per cent to $1.84 and Warehouse Group, the biggest retailer on the NZX 50, rose 2 per cent to $2.55.

Clothing chain Hallenstein Glasson rose 1.3 per cent to $3.81. Briscoe Group rose 0.7 per cent to $1.46.

Heartland New Zealand, the lender which took on PGG Wrightson's finance book last year, was unchanged at 48c. After the market close, the finance company reported a first-half profit of $9.8 million, meetings its guidance, and forecast a full-year profit of as much as $22 million.

Cavalier rose 4.2 per cent to $1.98, clawing back some of the 17.4 per cent shed on Wednesday, when the carpet maker said it was "extremely unlikely" to meet its full-year profit guidance of $8.5 million to $10.5 million. First-half earnings tumbled 59 per cent.

AMP declined 0.4 per cent to $5.53 on the NZX.

AMP's full-year profit fell 11 per cent to A$688 million ($888 million) due to the costs of taking over rival AXA and lower investment returns.