Market close: Little change as investors wait for US inflation data

Contact Energy was the most heavily traded stock, increasing 7c to $7.92 on trade worth $10.63 million. Photo / Grant Bradley

The New Zealand sharemarket eked out a small gain today but there was no real commitment as investors wait for the latest United States inflation number and any signal that interest rate rises will slow.

The S&P/NZX 50 Index got cracking after an early-morning fall and closed at 11,665.26, up 18.81 points or 0.16 per cent. The index has now risen by 1.3 per cent in the five trading days this year.

There were 67 gainers and 64 decliners on the main board, with 22.84 million shares worth $105.76 million changing hands.

Shane Solly, portfolio manager with Harbour Asset Management, said all eyes are on the December US Consumer Price Index (CPI) and whether there is enough evidence to show that inflation is slowing.

Analysts are picking the CPI — to be released Friday morning NZ time — will reveal a 0.1 per cent drop in headline inflation, representing an annual rate of 6.5 per cent, down from 7.1 per cent. Stripping out food and energy, the December CPI is expected to increase 0.3 per cent.

Solly said the US market was up initially but then rolled over when two Federal Reserve officials said there was more work to be done in taming inflation.

“The markets are wanting to run on the latest softer economic data but the central bank is saying ‘you are getting ahead of yourself’. Our market was positive on the day and we will take that, but there is a general wariness as investors wait and see what comes out of US inflation,” said Solly.

At home, there were few moves among the leading stocks, though Fletcher Building was up 7c to $4.89, and Auckland International Airport gained 5c to $8.09.

Contact Energy was the most heavily traded stock, increasing 7c to $7.92 on trade worth $10.63m. Other stocks in the sector were mixed. Meridian was up 6c to $5.38; Manawa decreased 5c to $4.98; and Vector declined 6c to $4.17.

Some property stocks made gains. Kiwi increased 2.5c or 2.76 per cent to 93c; Property for Industry was up 1.5c to $2.275; Goodman Trust added 1.5c to $2.05; Precinct collected 1c to $1.27; but Stride was down 2c to $1.43.

Pacific Edge rose 4c or 8.16 per cent to 53c; AFT Pharmaceuticals increased 8c or 2.15 per cent to $3.80; PGG Wrightson was up 6c to $4.66; Booster Innovation Fund climbed 4.9c or 3.55 per cent to $1.43; and Tourism Holdings collected 4c to $3.64.

Vista Group was up 5c or 3.31 per cent to $1.56; Allied Farmers increased 3c or 4 per cent to 78c; Marlin Global Fund added 2c or 2.13 per cent to 96c; Green Cross Health collected 3c or 2.22 per cent to $1.38; and ArborGen gained 1c or 4.55 per cent to 23c.

Summerset Group was down 5c to $9.22 after reporting its highest fourth-quarter resale settlements of 138 retirement units and second-highest new sales of 139.

Solly said Summerset had a better update with its December sales and people were actually paying for units. “There’s been a wariness over the retirement sector around the housing market. But what’s happening is that [some] people do need to move on and get into a retirement village.” Ryman Healthcare was down 8c to $5.51; and Oceania Healthcare was up 1c to 80c.

Chorus declined 13.5c to $8.135; Synlait Milk was down 7c or 1.92 per cent to $3.57; Seeka fell 9c or 3.01 per cent to $3.01; and Steel & Tube decreased 3c or 2.31 per cent to $1.27.

My Food Bag was down 1c or 2.5 per cent to 39c; Millennium & Copthorne Hotels NZ declined 4c or 2.11 per cent; MHM Automation shed 2c or 2.06 per cent to 95c; and ikeGPS decreased 2c or 2.13 per cent to 92c.

Medicinal cannabis stock Cannasouth was down 1c or 3.45 per cent to 28c; and Greenfern Industrials declined 0.004c or 3.67 per cent to 10.5c.