Little rest for sharebrokers

Press, 10 January 1984, Page 18

Little rest for sharebrokers

Any hopes of sharebrokers for a rest during the morning calls which traditionally open trading for the year on the New Zealand Stock Exchange, vanished after the first four of the five calls ended yesterday. Trading resumed in 1984 at the same brisk rate that it ended on in 1983. In spite of there only being morning calls so far, sharebrokers and the stock exchange have been busy.

A Press Association report from Auckland says that brokers have been advising their clients to buy heavily. Christchurch brokers have been a little more circumspect on what course to urge. “If people want to get into the market, then they shouldn’t delay,” said Mr John Wignall, of Egden Wignail and Company.

He added a note of caution by saying that only seasoned investors should enter the market at a time of record prices.

The brokers interviewed

last evening tended to agree that the market would remain firm for some time, but they expect some profittaking during the month as more investors return from holidays. An official for Hamilton, Hindin, and Greene said that traditionally the market opened each year on a firm note, one of the main factors being a shortage of sellers. But the brokers agreed that this time the market has been helped by people seeking to reinvest money gained from the selling spree in Wattie’s, Goodman’s, and NZ. Forest Pro-" ducts shares during the last two months.

During the morning calls, the NZUC industrial index, the market’s major indicator, has gained 69.74 points to close at a record 1353.87. The index has a base of 100 points set on January 31, 1957.

The Press Association report from Auckland says that leading stocks rose about 10 per cent in the

first three days of trading last week and most industrials fared well.

Only the oil sector, reflecting uncertainty over commercial oil prospects in the Taranaki Bight and Great South Basin, failed to respond to the widespread confidence in equities.

The secretary of the Auckland exchange, Mr Doug Wright, said the New Year start of trading was the busiest he could remember in nearly 25 years association with the exchange.

Investors’ attention had been focused on stocks generally since the publicity about oil shares last year. Industrials had been the beneficiary. Market capitalisation — the market value of companies’ issued shares — was slightly more than $lO billion at the close of trade on Friday, compared with $4.7 billion at the start of trading last year.