Market mixed despite good profit news

Press, 27 February 1984, Page 14

Market mixed despite good profit news

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Mostly good company news and the emergence of the Dairy Board as a force in the private sector were the main points of interest in a mixed and fairly quiet New Zealand share market last week.

Although rises outnumbered falls about eight to seven, the NZU index slipped a bit — reflecting the losses of some market leaders with considerable weight in the index.

Fletcher lost 5c on the week, Alex Harvey 30c, NZSB 7c, and Brierley Investments 10c, losses that could not be wholly offset by the many second-line stocks among the rises.

ADRIAN BROKKING,

Thirty-six issues reached new highs during the week, although a number of these could not manage to hang on to the gains, and closed below their best.

Most of the new highs were second-liners, but they included ICI and I. W. Dow, Alliance, Rothmans, Mair, and Emco. Apart from Mair, other local companies in this category were R. W. Saunders, Transport North Canterbury, Transport Ashburton, Ebos, Brother, Westbridge, Christchurch Press, and Kearns Oatina.

Newspapers continued to be in demand, with the exception of INL, which continues to go against the

finance editor

trend and lost another 5c during the week. Transport companies featured among the rises, after good profit reports from Freightways and TNL. Mogal rose 70c to 670 c, and Freightways put on 40c to 450 c. TNL was unchanged at 225 c.

Another locally headquartered company, Command Services Corporation, announced plans for a 1:6 bonus issue after a slightly lower profit. The market treated the news by paring 10c of the shares — rather harsh considering that at a price-earnings ratio of 8:5 the shares appear to be underpriced.