New Zealand shares fell, led downwards by Warehouse Group and Pumpkin Patch as investors mulled the health of the retail sector, while Air New Zealand gained on falling oil prices.

The NZX 50 Index fell 2.014 points, or 0.03 per cent, to 5455.378.

Within the index, 22 shares fell, 19 rose and nine were unchanged on $86.2 million turnover.

Warehouse fell 1.9 per cent to $3.09. New Zealand’s largest listed retailer, which is struggling to grow earnings, has advised sales heading into the peak Christmas season have been “soft”.

Outside the benchmark index, Pumpkin Patch tumbled 16 per cent to a record low of 21 cents. The childrenswear retailer told shareholders earlier this week it is at risk of breaching its banking covenants if Christmas season sales disappoint.

“For the retail sector, across the board, there hasn’t been a lot of good news,” said Mark Lister, head of private wealth research at Craigs Investment Partners.

“The jury is still out on whether the retail sector is past the worst. They’re definitely still doing it tough and you’d think with the economy going alright we might be set to have a pretty decent Christmas in terms of spending and so forth.”

Air New Zealand was the best performer on the benchmark index, climbing 5.4 per cent to $2.34, after saying on Wednesday it expected significantly improved earnings if the current low level of jet fuel price persists.

Infratil, the energy and infrastructure investor, led the benchmark index lower falling 5.1 per cent to $2.87.

Outside the benchmark index, Gentrack Group, which develops utilities and airports software, climbed 4.2 per cent to $2.24, but still below its July offer price of $2.40, after its full year profit of $3.4 million beat a downgraded guidance it gave five weeks after listing on the share market.

BusinessDesk