Market close: Missing overseas investors makes for light trading

Investors are watching for some direction from the United States, with the Federal Open Market Committee (FOMC) meeting this week. File photo

A lifeless New Zealand sharemarket had one its lightest trading days of the year and is waiting for some direction from the United States, with the Federal Open Market Committee (FOMC) meeting this week.

The market was also missing overseas investors with the Australian market closed for Queen's Birthday Weekend in all states except Queensland and Western Australia.

The S&P/NZX 50 Index did rise 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 per cent, after reaching the morning high of 12,583.45.

A miniscule 29.65 million shares worth $93.58m changed hands, and there were 104 gainers and 40 decliners over the whole market.

Shane Solly, portfolio manager with Harbour Asset Management, said people will be watching the outcome of the FOMC meeting which will 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 long-term interest rates have fallen, instead of rising as was expected. The tone and words from the FOMC will be closely followed," Solly said.

He said the pull-back in bond yields has allowed the local market to bounce back, with the leading index having increased more than 1.5 per cent 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 per cent 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 per cent 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, with a2 Milk rising 16c or 2.61 per cent to $6.29, and Synlait gaining 13c or 3.87 per cent to $3.49. Solly said a2 Milk has been pushed around by international investors lately and they were not as active.

Ebos Group climbed 79c or 2.39 per cent to $33.90; Freightways rose 12c to $12.22; Restaurant Brands was up 30c or 2.2 per cent to $13.92; Fletcher Building gained 6c to $7.88; Port of Tauranga increased 15c or 2.05 per cent to $7.45; Summerset Group Holdings collected 11c to $12.99; and Sanford picked up 15c or 3.06 per cent to $5.05.

Heartland Group Holdings climbed 12c or 6.09 per cent to $2.09; Oceania Healthcare was up 3c or 2.05 per cent to $1.49; Scales Corporation gained 10c or 2.11 per cent to $4.85; Accordant Group rose 8c or 4.94 per cent to $1.70; Enprise increased 13c or 6.13 per cent 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 per cent in May, with the biggest increase in small medium business, up 49.2 per cent. National hydro storage increased from 67 per cent to 70 per cent of historical average, with South Island storage reaching 75 per cent and North Island unchanged at 35 per cent 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 per cent to $2.10; Metro Performance Glass decreased 1.5c or 3.41 per cent to 42.5c; and Blis Technologies was down 0.002c or 3.28 per cent to 5.9c.

Carpet maker Cavalier Corporation has signed up to the New Zealand Farm Assurance programme, and therefore adopting the national wool standard. Cavalier's share price edged ahead 1c or 2.38 per cent to 43c.

Livestock Improvement Corporation chief executive Wayne McNee is stepping down after eight years in the role, and its share price was unchanged at $1.20.