Market commentary

WELLINGTON: Investors are sitting back and playing a waiting game as the New Zealand sharemarket drifted, although leading stock Fisher and Paykel Healthcare took a spurt on late heavy trading.

The S&P/NZX 50 Index slipped 29.77 points or 0.24% to 12,432.61, after reaching an intraday high of 12,502.89. There were 70 gainers and 67 decliners over the whole market, and volume reached 64.91 million shares worth $195.51 million.

Jeremy Sullivan, investment adviser with Hamilton Hindin Greene, said the market was in a holding pattern to see how things played out in the United States election.

Investors are also looking for guidance from the Reserve Bank next month.

‘‘The Reserve Bank of Australia has indicated further stimulus and an easing in monetary policy, and I’m sure we will follow in kind,’’ Sullivan said.

Fisher and Paykel Healthcare had another good recovery day rising 87c or 2.45% to $36.40 on trade worth $40.6 million, but a2 Milk was down 32c or 2.03% to $15.46 on trade worth $17.2 million.

Global investment bank UBS Group AG has reduced its stake in a2 Milk to 4.95%, from 5.05%.

Mainfreight climbed another 63c to a new peak of $54.50. Asked if the company would consider a share split, Sullivan said it depended on Mainfreight’s intention.

‘‘In New Zealand we like to buy $2$10 stocks, in Australia they like to buy $10$30 shares and in the US you don’t buy anything under $30. If Mainfreight wanted to satisfy the New Zealand investor, then yes they could consider a share split, but if they were appealing to international investors, then there’s no need.’’

Meridian, which reached a high of $5.90 on October 15, fell 13.5c or 2.43% to $5.415 on profittaking. Mercury slipped 7c to $5.21. Genesis, up 2.5c to $3.21, and Vector, down 2c to $4.37, reported operating performances for the three months ending September.

Genesis’ total electricity sales volumes increased 3.4% and bottle LPG volumes rose 5.3% compared with the corresponding period last year, despite small and medium enterprise sales declining 6.6% due to the Auckland lockdown. Genesis’ backup thermal generation increased 20% because of declining lake levels and gas production constraints.

Vector’s electricity network connections increased 1.7% to 582,990 and gas connections were up 2% to 114,584. There was a 7% lift in LPG bottle swaps, and Vector now has 1.74 million advanced meters installed in Australia and New Zealand, indicating growth of 9.2%. —