Market close: NZ shares beat regional peers, fall 0.6%

BUSINESSDESK: New Zealand shares beat their regional peers, falling 0.6% today, paced by dual-listed Australian banks amid growing concerns Europe's financial stability. 

OceanaGold was the biggest gainer on the day.

The NZX 50 Index fell 20.06 points, or 0.6%, to 3501.44. Within the index, 30 stocks fell, eight gained, and 12 were unchanged.

Turnover was $99.4 million.

Dual-listed stocks were punished as stock markets across Asia Pacific were dragged lower on rising fears Spain's fragile banking system could spill over into a Europe-wide debt crisis.

Australian lender Westpac Banking fell 3.3% to $26.60 and Australia & New Zealand Banking Group dipped 2% to $27.20.

Dual-listed financial services firm AMP declined 2.1% to $5.02.

Australia's S&P/ASX 200 index fell 2.6% to 4047.8 in afternoon trading, while Japan's Nikkei 225 index fell 2.9% to 8620.99 and Hong Kong's Hang Seng was down 2.6% to 18706.82.

"Our market has just been a stunning performer relative to how some others have gone," said Mark Lister, head of private wealth research at Craigs Investment Partners.

"Things are a bit more stable - we don't have a financial sector, and bank stocks have been weak offshore."

Index heavyweights were mixed, with Telecom down 0.8% to $2.52, construction firm Fletcher Building declining 0.5% to $6.29 and power company Contact Energy rising 0.6% to $4.90.

Children's clothing chain Pumpkin Patch led the bourse lower, fall 3.2% to 90 cents, while jewellery retailer Michael Hill International declined 2.8% to $1.03.

Guinness Peat Group fell 1% to 48 cents after saying it has sold a third of its portfolio since embarking on a wind-down strategy last year, and ahead of next week's annual meeting in Auckland.

Tower, GPG's second biggest investment, fell 1.2% to $1.62.

OceanaGold was the biggest gainer, up 6.2% to $2.41. The spot price of gold slipped 0.2% to $US1568.79 an ounce today.

Methven climbed 3.5% to $1.19 after the tapmaker met full-year guidance with an annual profit of $6.5 million, and held its total dividend at 10 cents a share.

Steel & Tube, which sells steel building products, gained 4.4% to $2.35.

Retirement village operator Ryman Healthcare rose 0.9% to a new record close $3.37 after posting a record underlying profit of $84m yesterday.

Rakon dropped 2% to 48 cents, following on from yesterday's 9.3% plunge after the crystal oscillator maker blamed a strong kiwi and weaker demand from the telecommunications industry for its annual loss of $420,000.