Market commentary

NEW Zealand shares edged higher in thin trading, as holidays in Auckland and Australia kept a lid on activity. Fonterra Shareholders’ Fund and Freightways gained.

The S&P/NZX 50 index increased 3.97 points, or 0.04%, to 9114.52. 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,’’ Tom McBride, an investment adviser at Hamilton Hindin Greene, said.

‘‘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 90day average. It fell 0.9% to $4.805.

No other top50 stocks traded more than a million shares. Contact Energy was the secondmost traded on a volume of 402,000, less than half its average activity. Contact slipped 0.2% to $6.07.

Fonterra Shareholders’ Fund units led the market higher on less than a tenth of their average volume, up 1.7% at $4.85, its highest close since November 11. Fonterra shares, which trade in a closed market for farmers, rose 1.7% to $4.85. Smaller rival Synlait Milk yesterday lowered its forecast farmgate payout to $6.25 per kilogram of milk solids from a previous forecast of $6.75 kg/ms. Synlait shares were unchanged at $9.76

Mr McBride said Synlait was still riding on the coattails of a2 Milk, which it supplies. A2 gained 0.8% to $12.40 on less than a tenth of its average trading volume.

Freightways rose 1.4% to $7.50 and Ebos Group increased 1.2% to $21.80 on very light volumes.

Fisher & Paykel Healthcare fell 2.1% to $13.20 on a third of its threemonthly 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 twoweek high after the US Federal government shutdown ended.

Tourism Holdings decreased 0.2% 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 deboning system for King salmon. Rival fishing firm, New Zealand King Salmon, slipped 0.5% to $2.19.

Oceania Healthcare fell 1.9% to $1.04, extending its decline after reporting lower operating earnings last week. — BusinessDesk