Easier market last week

Press, 31 March 1980, Page 24

Easier market last week

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The New Zealand sharemarket showed an easier irend last- week; the N.Z.U. hdex held up pretty well, jut did not really reflect the barker. On most days falls jutnumbared rises, and market leaders were weak. Two rather gloomy reports were published during ’ the week. The quarterly predictions of the New Zealand Institute of Economic Research, and'the annual economic survey of New. Zealand by the Organisation for Economic?, Co-operation and Development, of which New Zealand is a member coun-

tryThe two reports are in good agreement, and they predict for New Zealand little economic growth this year, but increasing inflation, continuing unemployment, s and a persistent balance-of-payments problem.

ADRIAN BROKKING,

Well, we knew that anyway. As Mr Muldoon said, its emphasis bri restructuring should help cohfinri in people’s minds -.that measures such as a flexible dollar, elimination of price control, and a reduction in import controls are needed. The documents’ emphasis on the harm done by trade pro'tectionism by other countries, many of them O.E.C.D. members, should also be of use to our trade negotiators and our delegates to multi- : nation trade policy conferences, although in the past these arguments have failed 'to carry the day. In any case, both reports would like us to take a less protectionist stance ourselves. • •

Meanwhile our long-term prospects are good, as Mr Muldoon and Mr AdamsSchneider pointed out forcefully at last week’s centen-

commercial editor

rial conference ' of- the Canterbury Manufacturers’ Federation. . ’ Provided always,}-that .we get on.with it, of course. ■Company reports 7were again . mixed. ' Brierley- Investments stole the. limelight with a 50 per {cent profit : increase, which made the shares jump / 15c to' 250 c, after ; which profit... takers pushed the price down to 240 c. ' ’ - -. . Fair reports were issued by New Zealand Industrial Light Leathers, when the annual meeting was told that markets were improving; Trans Ashburton, which had a nice profit recovery; M. O’Brien which increased profit 13.5 per cent; Canterbury Roller Flour. Mills which doubled profit and is planning a 2:3 bonus issue; James Smith whose profit increased 31 per cent; and N.Z. Refinery, which raised

profit 40 per cent, •' i J AN.Z. bank shares <were . listed bri Tuesday for the ■ 'first--time,' and initial sales were at 210 c, although stags . quickly pushed the' price down to 206 c, at which price . the shares yield 6.8 per cent ' from the forecast 14 per cent dividend. There is bound to be con- : siderable amount of redistri- , button of these shares, but they are worth hanging i onto, for the prospects of the New Zealand banks . appear to be excellent I The mooted merger between Mosgiel Woollens and : Alliance Textiles — which had been ' teetering ever I since Mosgiel disclosed a . plunge into the red for the December half year — was ■ scotched by Alliance during the week. Alliance an- ■ noimced that it intended to continue with its own plan to restructure product lines, and that current results are in line with expectations.