Market close: NZ shares flat as investors eye Federal Reserve's monetary policy statement

Federal Reserve chairman Jerome Powell is expected to deliver a 75 basis points increase. Photo / AP

The New Zealand sharemarket staged a recovery, and any future direction will be dictated by the United States central bank's latest view on hiking interest rates to control inflation.

All eyes will be on the Federal Reserve's monetary policy statement in the morning (NZ time). For the meantime, buyers moved from the sideline and steadied the local market, especially in the afternoon.

The S&P/NZX 50 Index finished flat, down 5.44 points or 0.05 per cent to 10,635.92 after trading in a range of 10,566.21 and 10,671.88 during the day.

There were 52 gainers and 94 decliners over the whole market with 33.8 million shares worth $132.78 million changing hands.

The Federal Reserve's leap of faith is expected to deliver a 75 basis points increase in its benchmark interest rate, triple what it normally does.

Greg Smith, head of retail with Devon Funds Management, said a lot is hanging on the Fed's move, more than in the past.

"We are continuing to get strong inflation reads around the globe and what the Fed does, other central banks will follow. The market has priced in a 75 basis points rise, and there might be a positive reaction if the Fed shows it is not falling behind the eight ball," he said.

"There's been some relentless selling to date but the New Zealand corporate landscape hasn't suddenly got super bad overnight. Some buyers are dipping their toes in the water, and whether we see some respite time will tell."

Shane Solly, portfolio manager with Harbour Asset Management, said there was better economic data coming out of China and their markets had perked up.

The Shanghai Composite Index was up 1.95 per cent to 3353.15 and the Hong Kong Hang Seng Index had risen 1.63 per cent to 21,411.02 at 6pm NZ time.

At home, Mainfreight recovered $1.60 or 2.28 per cent to $71.80; Spark was up 11c or 2.43 per cent to $4.64; Napier Port rose 14c or 5.34 per cent to $2.76; and Sky Network Television gained 4c or 1.81 per cent to $2.25.

Amongst the energy stocks, Mercury gained 14c or 2.61 per cent to $5.50; Meridian was up 7c to $4.50; and Manawa Energy was down 25c or 3.97 per cent to $6.05.

Auckland International Airport gained 10c to $7.37 after experiencing an increase in terminal activity. Total passenger volumes increased 4.2 per cent in April compared with the same month last year, and rose 19.3 per cent in May. During both months, international passengers were up 233.3 per cent and 108.7 per cent as the border reopened.

Other gainers were Scales Corporation up 20c or 4.76 per cent to $4.40; Sanford increasing 7c to $4.18; Tower gaining 2c or 3.13 per cent to 66c; and CDL Investments improving 2c or 2.41 per cent to 85c.

Among the retailers, Hallenstein Glasson declined 17c or 3.27 per cent to $5.03; and KMD Brands (formerly Kathmandu) was up 4c or 3.81 per cent to $1.09.

Ryman Healthcare declined 25c or 2.89 per cent to $8.40 after telling the market it is building a $220m retirement village, with hospital and dementia care, in Acacia Bay near Taupo.

Fellow retirement village operator Summerset Group Holdings was down 20c or 2.1 per cent to $9.32; and Arvida Group was up 3c or 2.1 per cent to $1.46.

Fletcher Building declined 14c or 2.83 per cent to $4.80. Investment firm Jarden has forecast an 18 per cent fall in New Zealand's median house price by the end of 2023 as mortgage rates rise – though house prices have risen almost 50 per cent in the past two years.

Market leader Fisher and Paykel Healthcare was down 27c to $19.23; Delegat Group fell 41c or 3.86 per cent to $10.20; Vista Group decreased 5c or 3.13 per cent to $1.55; and The Colonial Motor Company declined 32c or 3.4 per cent to $9.08.

Other decliners were Ampol down 47c to $40.61; Accordant Group falling 16c or 8.33 per cent to $1.76; and Pacific Edge decreasing 2c or 2.78 per cent to 70c.

Ventia Services Group declined 7c or 2.62 per cent to $2.60; Tourism Holdings was down 8c or 3.04 per cent to $2.55; and Gentrack fell 8c or 5.26 per cent to $1.44.

Medicinal cannabis company Rua Bioscience was up 1c or 3.33 per cent to 31c. Carbon Fund increased 5c or 2.35 per cent to $2.18 after the latest auction.

New Zealand Oil & Gas subsidiary Cue Energy Resources told the market that 12 additional oil production wells will be drilled in the Indonesia Mahato field. Cue has a 12.5 per cent interest, and NZOG's share price was down 1c or 2.17 per cent to 45c.