N.Z. market under holiday spell

Press, 10 January 1983, Page 24

N.Z. market under holiday spell

By finance reporter Any hopes that the New Zealand sharemarket would continue its pre-Christmas bullish trend evaporated in the first three days trading for 1983. Investors seemed content to soak up the sun rather than shares, and profit-takers moved in to take advantage of the higher prices on which market leaders closed at the end of the 1982 trading year.

This reflected in the net loss of 11c that N.Z. Forest Products incurred in the three morning calls of the week. Alex Harvey Industries fell Bc. Bunting 10c. and Rothmans 4c. The N.Z.U.C. industrial index sustained a net loss of 7.30 points to 629.67 on the w r eek.

After the rush of buying towards the end of December’s trading, caused partly by a reduction in interest rates by Marac Holdings, the lull of the first three morn-

ing calls was a great con trast.

The morning calls of the first week of trading on the national market are not much of a guide, because of the holidays. Last year, however. trading was brisk at this time, almost matching the headv final days of the 1982 trading year.

So far the euphoria on the sharemarkets across the Tasman. sparked by improving metal prices, falling interest rates, and rallies on Wall Street, has not made much impression in trading on New Zealand exchanges. However, investors will keep a weather eye on indications that the United States recession is actually ending, the reason behind the bullish Wall Street stockmarket. Interest began to increase in the New Zealand sharemarket on the second day. reflected in the greater length of the closing quotations from the Christchurch Invercargill Stock

Exchange. On Friday. turnover totalled 462.677. a busy market for a morning call, helped by a sale of 190.700 Cue Energy options at a steady 7c each. Cue accounted for 41 per cent of the total turnover, and brought the unusual occurrence of mining and oil shares outnumbering the industrials traded. As the industrial index has been falling, so has the N.Z.U.C. mining index improved. It gained 1.40 points on the week to close at 7.184. helped by proposals for oil explorations in New Zealand later this year. There was little company news. Manawatu Radio Company incurred a net loss of $3530 in its first half, but predicted that trading would improve in the final six months.

There will be morning calls on the New Zealand sharemarket today and tomorrow. and afternoon calls will resume on Wednesday.