Market close: Energy stocks continue fall

Mercury declined 10c to $5.30. Photo / Supplied

The New Zealand sharemarket had one of its quieter trading days for many weeks – showing it was unmoved by the Labour Party-dominated election result at the weekend.

Most of the stocks travelled in a narrow price range, after all the sharp rises and falls over the past few weeks. The S&P/NZX 50 Index slipped 47.90 points or 0.39 per cent to 12,385.25 in a late decline.

Volume was reasonably light with 47.39 million shares worth $137.31 million changing hands, and there were 90 gainers and 52 decliners over the whole market of 182 stocks.

The New Zealand dollar rose slightly against the American greenback, trading at 66.31c at 5.45pm after reaching a low of 65.98c during the day.

Matt Goodson, managing director of Salt Funds Management, said the market was flat most of the day and the election result had very little impact.

"It hasn't even been a major topic of conversation. The result was well and truly anticipated and the slight surprise was that Labour did a couple of points better. The election campaign was very thin on major policy and there will be no great change in the direction of the country."

Goodson said a new top income tax rate of 39c in the dollar would affect imputed dividends a little bit and it's highly unlikely that capital gains or wealth taxes will be introduced. "We know the minimum wage is going up from $18.90 to $20 an hour, and we can expect greater bargaining power from the unions."

He said the market will now turn to "an awful lot of fun with the United States election in two weeks. Right now, the US markets are focused on a Democratic clean sweep that will bring a new economic stimulus package and an increase in capital gains and company tax rates that could affect corporate earnings by up to 10 per cent."

Energy stocks continued to come off the boil, with Meridian falling 20c or 3.54 per cent to $5.45, Mercury declining 10c to $5.30, Genesis down 7c or 2.19 per cent to $3.12, and Trustpower decreasing 4c to $7.70.

Leading market stocks Fisher and Paykel Healthcare and a2 Milk were both up 4c to $35.24 and $15.70 respectively.

Auckland International Airport recovered 7c to $7.27, PGG Wrightson climbed 9c or 3.16 per cent to $2.94; and Fletcher Building increased 8c to $4.33.

Other decliners were Ryman Healthcare, down 35c or 2.36 per cent to $14.50; competitor Summerset Group falling 14c to $10.18; Ebos Group declining 30c to $26.50; and Heartland Group Holdings, down 4c or 2.84 per cent to $1.37.

Synlait Milk's subsidiary Dairyworks has sold its Deep South ice cream brand and operations to Talleys for an undisclosed sum, and Synlait edged ahead 2c to $5.47.

Sydney-based Auscap Asset Management has reduced its stake in NZME from 15.26 per cent to 13.99 per cent, and NZME's share price shot up 5c or 8.62 per cent to 63c.

TruScreen Group announced a successful second phase of its national clinical trial in the Chinese Sichuan Province and its share price rose 5.75 per cent to 9.2c. The trial was conducted in 14 hospitals with 1243 patients. TruScreen has developed cervical screening technology, providing real-time, accurate detection of pre-cancerous and cancerous cells.

Metlifecare announced the Takeovers Panel has no objection to Asia Pacific Village Group's $6 a share scheme of arrangement, and that shareholder ResIL has withdrawn its legal action opposing the scheme. Metlifecare's share price went up 5c to $5.97 and the retirement village operator can expects to delist from the NZX on November 3.