Market continues firm

Press, 20 October 1980, Page 26

Market continues firm

Bv

ADRIAN BROKKING,

commercial editor

Political developments! overshadowed the economic and commercial news on both sides of the Tasman last week, but — unlike its! Australian counterpart — the New .Zealand share-i market took them in its! stride, and continued its re-i cent firm trend. The N.Z.U. index reached! a new peak of 470.5 S on ! Tuesday, before easing a; little to close on Friday at 469.19 for a gain of 2.27 points on the week. Compared with the previous Friday, the week closed with ’ rises roughly outnumbering falls two to one. in moderately active trading. It looks if the market might be set for another period of consolidation. Most of the substantial rises were by second-line stocks, but Feltex. Tasman. Printpac. L. D. Nathan, Car-; ter Holt, and Arthur Yates! were market leaders which! chalked up good gains. . I

Arthur Yates, the successful ■ bidder for J. E. Watsons, rose 15c to 380 c, and in-

ilvestors are obviously keen! :|to climb aboard this dynam-| i|ic and rapidly expanding! i i company. Watson shares ijrose 140 c to come almost in • i line with the.bid price. ■ i Dalgety. which is known ;!to be not "entirely happy" • iwith the Yates/Watson com- ! bination, made it clear that ['it does not plan to engage in ja contested take-over battle. : i Carter Holt rose 25c to 340 c during the week; some investors may be speculating that the hearing on the Fletcher take-over proposal by the Commerce Commission — due to begin on November IB — may decide in favour of the latter. The shares of L. D. Nathan, now the country’s largest retailer, rose 7c to 187 c during the week. The company, which reported a fairly satisfactory profit the week before, is making good progress with the rationjalisation of the Woolworths and McKenzies stores, and has plans for considerable

expansion. Printpac shares gained 25c to 215 c on the strength of!

the company’s 42 per cent ■profit rise for the year. The dividend was increased to 16 per cent, and on the current price the shares yield 7.4 per cent.

Feltex shares rose 10c to 142 c. but on Thursday 1.6 M shares were traded ' at a price reportedly around 146 c. This is believed to be the holding’ of the B. F. Goodrich confpany, the United Slates tyre manufacturer which has a technical co-operation agreement with Reidrubber. This agreement will in any case not be affected by a sale of the Goodrich interest, a Feltex spokesman said.

The news from Tasman Pulp and Paper continues to be good: exports are doing well, and the company’s latest expansion plan: is to double the production of chlorine and soda — a move expected to also benefit the company in energy savings and greater efficiency. The market was excited enough to raise the price of Tasman shares 23c to 368 c.

Share's of companies

engaged in the rural sector did well last week, the exception being Dalgety which [lost 7c to 225 c.

Goodman Group, which is obviously successful in its reconstruction and expansion endeavours, plans to raise 86M from a 1;4 rights issue at 200 c a share. At the current price of 265 c. the theoretical value of the rights would be 52c. and shares should average down to 252 c. The Christchurch Press j Company also announced a cash issue, to be made next year; details to be announced later. The company also announced a good profit result- for the first half year. The shares put on 5c to 280 c.

The market greeted the news that the C.B.A. bank would exchange its 21 per cent interest in Marac for a 51 per cent interest in Transvision — and turn the latter into a major financier — by bidding Transvision shares up I3c to 243 c. Marac also gained —loc to 275 c.