Market commentary
WELLINGTON: A lifeless New Zealand sharemarket had one its lightest trading days of the year and is waiting for some direction from the United States, as the Federal Open Market Committee (FOMC) meets this week.
The market was also missing overseas investors as the Australian market was closed for Queen’s Birthday weekend in all states except Queensland and Western Australia.
The S&P/NZX 50 Index rose in the morning but then drifted all afternoon until the last half hour when it recovered most of the losses. The index closed at 12,562.17, up 11.78 points, or 0.09%, after reaching the morning high of 12,583.45.
A miniscule 29.65 million shares worth $93.58 million changed hands, and there were 104 gainers and 40 decliners over the whole market.
Shane Solly, portfolio manager with Harbour Asset Management, said people would be watching the outcome of the FOMC meeting which would be reviewing US economic conditions and monetary policy.
‘‘There is a contest emerging between rising inflation and whether central banks will wind back their supportive monetary policy. In recent weeks, we’ve seen relatively high inflation statistics but longterm interest rates have fallen, instead of rising as was expected. The tone and words from the FOMC will be closely followed,’’ Mr Solly said.
He said the pullback in bond yields had allowed the local market to bounce back, the leading index having increased more than 1.5% this month.
There were some decent moves on the light volume. Heavyweight Fisher and Paykel Healthcare once again dictated terms on the market after falling 79c or 2.64% to $29.13, Auckland International Airport was down 11c to $7.43; and Mainfreight shed $1.21 to $74.29.
Z Energy fell 8c or 3.03% to $2.56 after the Climate Change Commission said in its final report that nearly all cars imported by 2035 must be electric vehicles, thus affecting fuel demand.
The milk operators had a better day, a2 Milk rising 16c or 2.61% to $6.29, and Synlait gaining 13c or 3.87% to $3.49. Mr Solly said a2 Milk had been pushed around by international investors lately and they were not as active.
Ebos Group climbed 79c or 2.39% to $33.90; Freightways rose 12c to $12.22; Restaurant Brands was up 30c or 2.2% to $13.92; Fletcher Building gained 6c to $7.88; Port of Tauranga increased 15c or 2.05% to $7.45; Summerset Group Holdings collected 11c to $12.99; and Sanford picked up 15c or 3.06% to $5.05.
Heartland Group Holdings climbed 12c or 6.09% to $2.09; Oceania Healthcare was up 3c or 2.05% to $1.49; Scales Corporation gained 10c or 2.11% to $4.85; Accordant Group rose 8c or 4.94% to $1.70; Enprise increased 13c or 6.13% to $2.25; and Property for Industry was up 4.5c to $2.895.
Meridian Energy told the market that its retail sales rose 23.4% in May, having the biggest increase in small medium business, up 49.2%. National hydro storage increased from 67% to 70% of historical average, South Island storage reaching 75% and North Island unchanged at 35% at June 10.
Meridian slipped 1c to $5.34, while Contact rose 6c to $8.45, Mercury increased 11c to $6.43; and Genesis gained 5c to $3.43.
Gentrack declined 6c or 2.78% to $2.10; Metro Performance Glass decreased 1.5c or 3.41% to 42.5c; and Blis Technologies was down 0.002c or 3.28% to 5.9c.
Carpet maker Cavalier Corporation has signed up to the New Zealand Farm Assurance programme, and thereby adopting the national wool standard. Cavalier’s share price edged ahead 1c or 2.38% to 43c.
Livestock Improvement Corp chief executive Wayne McNee is stepping down after eight years in the role, and its share price was unchanged at $1.20. —