Investors remain on sidelines
By
ADRIAN BROKKING,
7 commercial editor
Trading on the New Zealand sharemarket was again very light last week—for the third successive week. Share prices were generally weaker, and the NZU index closed at the end of the three-and-a-half- day trading week at 649.49—a loss of 10.52 points for the week. This is about four points above the year's low of 645.57—5 et on March 29—and about 11 per cent below the highest point of the index, the 729.55 reached on February 5. Technical factors adversely affecting the sharemarket are the continued rise in interest rates, and the undiminished popularity of the Government's inflation-adjusted bonds. On the fundamental side are uncertainty over such political factors as the Falklands Islands .dispute, the health of the deputy Prime Minister (Mr Maclntyre), as well as worries about tax reform and the immediate prospects of the economy. In the absence of company news, investors are clearly remaining on the sidelines, at
least until the holidays are over. The announcement of the flotation of a new company. Landmark Properties. Ltd. was one of the few items of good news: this float is likely to prove popular. Other cheerful intelligence came from New Zealand Steel, which reported record production and sales, and from Yates Corporation, which in a downright bullish report said that it expects significant increases in earnings a share. Alcan also produced a report during the week; the chairman (Mr J. B. Jackson) was cautiously optimistic over the company’s prospects for the year. No further news during the short week came from Vacation Hotels. At the close of the previous week this company issued a "don't sell" warning; the chairman (Mr J. T. Sheffield) said that discussions were taking place which could affect the value of the share, and that "a further statement would probably be made next week.
The Australian sharemarket staged a small rally last week, as international political factors that boosted gold bullion prices prompted buying of resources shares. Uncertainty over the Falkland Islands/and rumours of Soviet military activity, caused firmer gold values in New’ York on Monday and Tuesday, and this in turn generated activity on lowvolumes in metal and oil stocks. During the week the allordinaries index put on 8.7 points to 468.9. The resource indicator increased 11.8 points to 342.4. the industrial measure gained 4.7 points to 624.5. and the metal marker rose 13.7 points to 342.0. However, the gains reflected an absence of sellers rather than intensive buying of energy stocks. The sweeping Fraser-How-ard victory in the Liberal Party • leadership ballots caused hardly a stir as the result was merely in line with sharemarket’ expectations.
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Press, 13 April 1982, Page 22
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441Investors remain on sidelines Press, 13 April 1982, Page 22
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