Market reaches new high

Press, 30 March 1981, Page 22

Market reaches new high

< By

ADRIAN BROKKING

■, commercial editor

Takeovers and rumours of take-overs kept the New Zealand share- market on the boil last week, and many share prices reached hew high points, in active trading. The N.Z.U. index broke through the 600-level. and, in spite of some hesitation in the middle of the week, stayed there to close on Friday at 610.18 — a gain of 18.40 points on the week, and the highest level it has ever reached. Hard on the heels of. the bid by Brierley Investments for a 20 pcr cent stake in Dominion Breweries came a bid by Allied Farmers, the Auckland stock and station agent for a minimum of 40 per cent of the shares of R. and W. Hellaby, the Auckland meat processor and ex-

porter, which gave a new' boost to take-over' enthusi- ' asm; , ■ jAlthough jat this stage it must be ~doubtful, whether this bid will succeed, the Hellaby shares rose 73c to 285 c during the week —48 c short of the value of the AFCoop bid. However, Allied Farmers shares declined 30c during the week, which reduces the original value of the bid to 263 c. This decline is natural enough, as Allied Farmers would be issuing a large quantity of shares in exchange’ for Hellaby shares, with a consequent depressing effect on the market. Take-over enthusiasm received a further boost from the news that Phillips and Impey is negotiating

with Hardie Industries, of Australia, to merge its New’ Zealand Activities. ' Oh Friday Odlins ’ shares gained 18c to 112 c in a string of sales on strong take-over rumours. However, the Odlins directors issued a prompt statement that they knew of no reason for the movement of the shares, and Odlins closed at 101 c. for a gain of 10c on the week. Fletcher Challenge shares gained 20c during the week to reach a new peak of 260 c. after suggestions that the dividend may be higher than the 28 per cent which was anticipated by market observers. Ceramco. which has been recommended as a good purchase by several brokers, rose 25c to 270 c. Alliance

gained 10c to 102 c. C'.P.D. 10c to 310 c. Feltex 13c to 176 c. and L. D. Nathan 12c to 232 c: all four have been in the news lately because of encouraging developments within the companies.

Shares connected with the forest industry continue to be in demand: C.T.P. rose 15c to 390 c. Henderson and Pollard 20c to 375 c. and N.Z. Forest Products 10c to 400 c. It is perhaps ironical, to observe that the latter share price is still 18c below the. 428 c reached by it at the top of the previous sharemarket boom seven years ago.

Among local companies. Skellerup. 10c higher at 365 c, Prudential, also 10c better at 125 c. and Taylors, which put on 15c to 150 c, stood out.