Market remains firm

Press, 23 November 1981, Page 24

Market remains firm

By

ADRIAN BROKKING,

commercial editor

The New Zealand sharemarket continued to firm last week, spurred by a number of large.“first come, first served” buying orders.

The first of these was the S22M offer by an Auckland businessman, Mr A. D. Myers. for a 15 per cent stake in Lion Breweries. Shareholders fell over themselves to sell at the price offered —190 c — and this buying spree was over in less than‘3 hours. In fairness to the smaller shareholders Mr -Myers extended his offer to 20 per cent of Lion’s capital, which was achieved the next day. Both Mr Myers and the chairman of Lion Breweries (Sir Ralph Thompson) are to be commended on their prompt and unequivocal statements made on Monday morning, which left the market in no doubt as to what was happening. However, it would have been better if the bid had been announced on Friday after the close of trading, so as to allow time for the news to be broadcast more widely. Rothmans bought a 20 per

cent shareholding in Ballins, some large parcels of Winstone. MSI, and TNL shares were crossed, and an Invercargill party announced that it was standing in the market for 60,000 Farrier Waimak shares at 105 c each. On Friday 18,700 Farrier shares changed hands at this price.

Wilson Neill shares rose sharply in price during the week, gaining 24c to 125 c. In response to an inquiry by the stock exchange the directors of Wilson Neill said that they ‘'had no knowledge of any reason why this should have occurred."

Some excellent profit

results were announced during the week, • including Ballins which earned more in the latest six months than in the whole of the previous year. Allflex, which doubled its profit, and Alex Harvey — a profit increase of 88 per cent for the half year.

Allflex shares rose 17c to 182 c, Dominion Breweries benefited from' the action in the liquor industry and put on 13c to 130 c, Buntings rose 20c to 260 c, ICI rose 18c to 210 c. Rex reacted to a good profit report with a gain of 20c to 300 c. and Smith Biolab likewise put on 13c to 155 c. Newspaper shares were keenly sought, and most recorded good rises.