New Zealand shares fell in one of the lightest trading days this year as a drop in the price of crude weighed on oil companies and retailer Warehouse Group said it is trading behind budget in the run-up to Christmas.

The NZX 50 Index declined 13.94, or 0.4%, to 3158.14. Within the index, 22 stocks fell, 18 rose and 10 were unchanged. Turnover was $42.8 million.

Warehouse, the biggest retailer on the benchmark index, declined 4.4% to $4.11 after chief executive Ian Morrice said revenue in September and October were lower than expected, signaling a slow start to sales of seasonal goods. Retail demand “remains unpredictable” despite a pick-up in consumer sentiment, he said.

Among other retailers, clothing chain Hallenstein Glasson Holdings dipped 0.6% to $3.10 and Briscoe Group, the home-ware and sports goods retailer, declined 2.5% to $1.17.

“Most people had anticipated a modest outlook” for Warehouse, said Shane Solly, who manages $50 million to $100 million for high net worth individuals at Mint Asset Management. “We like the long-term outlook” for equities though there are “reasons to be a bit cautious short term.

Kathmandu Holdings, the outdoor equipment and clothing chain, ended its first day of trading on the NZX at $2.23, a 4.7% gain from its initial public offering price of $2.13.

Financial director Mark Todd said outdoor supplies are quite a niche and specific market and the company has very little competition at present. Business has been reasonably good in retail and this has been reflected in recent weeks we’re comfortable with our own trading, Todd told BusinessWire.

Pan Pacific Petroleum sank 3.6% to 54 cents, snapping four days of gains, after the price of oil headed for its second weekly decline.New York crude oil for December delivery traded at about US$77.04 a barrel in Asia today, having fallen to US$76.94 yesterday, the lowest settlement price since Oct. 14.

New Zealand Oil & Gas declined 1.7% to $1.69. Coal miner Pike River Coal fell 1.9% to $1.02.

Comvita Ltd., the health-care products manufacturer, climbed 4.8% to $1.30, adding to yesterday’s 7.8% jump after chief executive Brett Hewlett said his industry “has escaped any significant impact of the recessionary downturn” and the company reported a 27% jump in first half sales.

NZ Farming Systems Uruguay gained 2.2% to 46 cents and PGG Wrightson rose 1.6% to 63 cents after Synlait Ltd., the Canterbury-based dairy group, announced plans to take its milk processing division public, taking advantage of resurgent global prices to raise funds to expand.

Freightways Ltd, the courier company, rose about 2% to $3.14 and trucking firm Mainfreight Ltd gained 1.8% to $5.65. NZX Ltd, the stock exchange operator, rose 1.2% to $8.20.

Westpac Banking Corp. fell 1.2% to $33.30 and Australia & New Zealand Banking Group declined 1.4% to $28.50, tracking shares of Australian lenders on the ASX lower.