N.Z. sharemarket rallies

Press, 5 September 1983, Page 21

N.Z. sharemarket rallies

By

ADRIAN BROKKING,

commercial editor

The New Zealand sharemarket recovered a little of the ground lost in the previous week and the first two days of last week. However, the price level remains some 4.5 per cent below its high of July 28, more than five weeks ago. Trading volumes were similar to the previous week — averaging about 2.3 million shares daily — but somewhat below the volumes of the four weeks before.

For the whole of the week rises outnumbered falls about four to three, and issues reached new highs for the year. Most of these were second-line stocks, but included were BHP and CSR, Fisher and Paykel, LWR, two newspaper publishers — Wilson and Horton, and OPP — and Transport North Canterbury continues to go from strength to strength. Disregarding the Australians, Carbonic Ice had the best gain during the week —50 c to 400 c, on the news of its proposed one-for-five bonus issue.

Brierley Investments put

on 31c for the week; 20c rises were chalked up by Arthur Barnett, Nuhaka, and McConnell Dowell. Progressive Enterprises reversed its weak trend of the past few weeks and rose 25c to 330 c; this compares with its high for the year of 400 c.

Another share making a come-back is Clyde Industries which rose 15c during the week. The strong demand for Humes is continuing, and this share also gained 15c. The timber group reversed its trend of the previous week: Fletchers rose 8c to 248 c, NZ Forest 15c to 430, no doubt on its optimistic report, Carter Holt 10c to 315 c, while Winestone was steady at 134 c.

The mining and oil sector was weaker last week; investors remain worried about the two huge issues which will come on the market soon. NZ Oil.and Gas lost 10c to 90c, and NZ Petroleum 15c to 240 c, but falls by Crusader and Cue were small — 1c each.

Petro Taranaki was first traded on Wednesday, when it dominated trading. The contributing shares sold that day in a range of 42c to 55c, and closed on Friday at 45c on the largest parcel; the options, which reached a high of 41c on Wednesday, finished the week at 36c.

The three-way battle for Southland Frozen Meat was quickly decided on Friday, when Waitaki NZ Refrigerating — after learning that it would not receive the necessary consent from the Examiner of Commercial Practices — sold its holding to Fletcher Challenge, which gave the latter control of the Southland Meat Processor. The other contender was the Primary Producers Cooperative Society, which has become a considerable force in the industry through its holdings in Canterbury Frozen Meat and R. and W. Hellaby. In a comment during the week-end, the chief executive of the PPCS, Mr lan Jenkinson, said from Dunedin that he thought

that the meat processing industry would end up in two very large groups, dominated by Watties and Fletchers.

He expects a battle of the Titans in the next couple of years, he said. Although the Examiner left the shareholding question open to the parties concerned he did set down special conditions and assurances for both the PPCS and Fletcher Challenge moves. The conditions for Fletcher Challenge said that no special preference should be given for clients by its subsidiary Wrightson-NMA for drafting, killing, and transport of stock for SFM. And similarly SFM should not engage in any anticompetitive discrimination, or give special preference to clients of Wrightson NMA.

The conditions for PPCS said that it should not seek any special preference for members or clients for drafting, killing, or stock transport. PPCS was also to determine independently its own charges for drafting.