NZ shares slide after Sky TV issues profit downgrade

New Zealand shares fell after an afternoon profit downgrade from Sky Network Television, which weighed on the NZX-50 Index on the final day of trading before a three-day sporting holiday weekend.

The NZX-50 Index fell 8.61 or 0.26 per cent, to 3281.16. Within the index, 47 stocks fell and 36 rose.

Turnover was $80.3 million.

Sky TV yesterday became the fifth NZX-50 company to give a profit downgrade in the past two weeks. The economy barely grew in the second quarter and the Canterbury earthquake has disrupted operations for companies including Restaurant Brands.

Sky TV fell 4.8 per cent to $5.38 after forecasting profit for 2012 that missed analyst estimates. The company told shareholders at their annual meeting that capital spending costs would be higher than expected.

"There have been a lot of meetings lately and investors are keeping a close eye on the outcomes to see how shareholders are reacting," said David Colman, head equities dealer at ANZ Bank's Direct Broking unit.

Fletcher Building rose 1.1 per cent to $6.41, clawing back a small portion of the 20 per cent value shed since last week's warning that first-half profit would decline and full-year earnings growth would stall.

Shares across Asia were mixed yesterday after modest increases on Wall St and continued uncertainty ahead of this weekend's European Union Summit when leaders will attempt to reach agreement on a solution to the region's debt crisis.

The S&P/ASX 200 Index took its cue from Wall St, making moderate gains. Australia's energy stocks were the best performer as Brent crude rose, though falling metal prices led to a drop in the materials sector.

NZ's OceanaGold was unchanged after tumbling 9.7 per cent to $2.80 on Thursday.