MELBOURNE/WELLINGTON, March 21 (Reuters) - New Zealand shares hit a fresh record high on Monday propelled by yield-hungry investors, while Australian shares slipped 0.5 percent as mining and energy companies were hurt by weaker metals and oil prices.
New Zealand's benchmark S&P/NZX 50 index .NZ50 was up 10.09 points, or 0.2 percent, at 6,633.59 as of 0204 GMT after touching a record 6,649.61, and looked set for its third session of gains.
Investors are shifting funds out of bank deposits and into shares in search of higher returns as interest rates have been cut to record lows, said Grant Williamson, a broker at Hamilton Hindin Greene.
"I think we'll find that will continue for a while, because as term deposits mature people are looking to see what alternatives there are, given what the banks are offering is pretty low," Williamson said.
Logistics group Mainfreight MFT.NZ and insurer Tower TWR.NZ led the market up.
In Australia, the S&P/ASX 200 index .AXJO fell 27.42 points to 5,155.70 by 0209 GMT, more than wiping out last Friday's gains. Volume was thin at the start of a holiday-shortened week.
"We're going to be range-bound for the entire calendar year," predicted Don Williams, chief investment officer at Platypus Asset Management.
He said there was little to drive the market higher as share price valuations were factoring in higher earnings growth than was achievable this year.
"The best of the earnings growth has been seen, and it's just going to be a tougher year this year," Williams said.
Three of the big four banks dropped more than 1 percent, while Westpac Banking Corp WBC.AX fell 0.4 percent.
The top two miners, BHP Billiton (LON:BLT) BHP.AX and Rio Tinto (LON:RIO) RIO.AX , both fell around 1 percent.
Energy stocks were among the biggest losers, with AWE Ltd AWE.AX and Beach Energy BPT.AX both off about 5 percent.
Virgin Australia VAH.AX jumped 9.3 percent to A$0.38 after securing a A$425 million ($323 million) loan facility from its four major shareholders: Air New Zealand AIR.NZ , Etihad Airways, Singapore Airlines SIAL.SI and Virgin Group, giving it breathing room to review its capital structure. New Zealand, which provided nearly a third of the facility in line with its stake in Virgin, rose 1 percent.
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