NZ shares edge higher; Australian, Auckland holidays sap volumes

New Zealand shares edged higher in thin trading, with holidays in Auckland and Australia keeping a lid on activity. Fonterra Shareholders' Fund and Freightways gained.

Monday, January 28th 2019, 6:12PM

by BusinessDesk

The S&P/NZX 50 index increased 3.97 points, or 0.04 percent, to 9,114.52. Within the index, 20 stocks gained, 15 fell, and 15 were unchanged. Turnover was quieter than usual at $25.8 million. Auckland anniversary and the Australia Day holiday across the Tasman kept the market very quiet. Just 5.2 million shares traded on the benchmark index, about a fifth of the 25.9 million volume daily average over the past three months. "Market volumes are very low today and it's hard to find any convincing pattern," said Tom McBride, an investment adviser at Hamilton Hindin Greene. "A fair amount of our market volume comes out of Australia as well as Auckland - that's the major reason it's so quiet." Spark New Zealand was the most active stock, with 1.2 million shares traded - well short of its 3.5 million 90-day average. It fell 0.9 percent to $4.805. No other top-50 stocks traded on more than a million shares, with Contact Energy the second-most traded on a volume of 402,000, less than half its average activity. Contact slipped 0.2 percent to $6.07. Fonterra Shareholders' Fund units led the market higher on less than a tenth of their average volume, up 1.7 percent at $4.85, its highest close since Nov. 11. Fonterra shares, which trade in a closed market for farmers, rose 1.7 percent to $4.85. Smaller rival Synlait Milk today lowered its forecast farmgate payout to $6.25 per kilogram of milk solids from a previous forecast of $6.75/kgMS. Synlait shares were unchanged at $9.76 McBride said Synlait was still riding on the coat-tails of A2 Milk, which it supplies. A2 gained 0.8 percent to $12.40 on less than a tenth of its average trading volume. Freightways rose 1.4 percent to $7.50 and Ebos Group increased 1.2 percent to $21.80 on very light volumes. Fisher & Paykel Healthcare fell 2.1 percent to $13.20 on a third of its three-monthly average. The breathing mask maker derives more than half its earnings in US dollars and benefits when the local currency is weaker. However, the kiwi traded near a two-week high after the US Federal government shutdown ended. Tourism Holdings decreased 0.2 percent to $5.14 in light trading after government data showed record guest nights in November. Outside the benchmark index, Scott Technology was unchanged at $2.85 after announcing a joint initiative with Mt Cook Alpine Salmon to develop an automated de-boning system for King salmon. Rival fishing firm, New Zealand King Salmon, slipped 0.5 percent to $2.19. Oceania Healthcare fell 1.9 percent to $1.04, extending its decline after reporting lower operating earnings last week.

Tags: Market Close