World bourses round-up

Press, 25 February 1985, Page 36

World bourses round-up

Hong Kong In a week shortened by the Chinese New Year, small investors squared positions ahead of the holidays, starting on Wednesday. A counter-bid for all Wheelock Marden shares by HK Wharf on Saturday triggered active speculative buying in shares linked to the take-over target, helping the Hang Seng index touch a 41-month high of 1,452.33. Wheelock shares were suspended from trading at the request of the company’s board. Attention continued to focus on Wheelock after Falwyn Company, Ltd, announced a bid higher than that of HK Wharf. Jardine was very actively traded despite its denial that a take-over bid for the company was in the offing. The Hang Seng index finished on 1,435.17. Tokyo The market average touched an all-time high of 12,181.69 in early trading, but prices failed to extend their rally. Late buying interest, mainly in incentive-backed issues, saw prices recoup early losses. The yen’s decline helped

to increase the wait-and-see sentiment, and investors remained hesitant after Wall Street’s soft post-holiday market. The average hit another record high of 12,192.31 early but the market then slid on profit-taking. At week’s end, buying centred on financials, and spilled into selective speculatives. The market average finished on 12,147.06. Singapore In a week shortened by the Chinese New Year, prices were higher over a broad front on sustained buying interest and shortcovering ahead of the holidays. The “Straits Times” industrial index finished on 810.90. Frankfurt Shares stagnated in a carnival atmosphere, with few investors prepared to enter the market. Strong demand fuelled by the firm dollar and reinforced expectations of strong Germany corporate earnings pushed many prices sharply higher in hectic trading with large turnover. The Commerzbank 60

share index reached a new all-time high of 1181.0. Enthusiasm generated by the firmer dollar and expectations of inflated profits from exports gave way to uncertainty about the interest rate outlook and some profit-taking ensued. The index set its second consecutive all-time peak at 1188.5. Prices then gave way on profit-taking after two days of records as investors held back following a sharp drop on United States credit markets and after Fed chairman Paul Volcker’s Congress remarks. Prices finished the week mixed in active trading with chemicals in particular, underpinned by expectations of higher profits, rising strongly on re-emerg-ing foreign investor buying. The index closed at 1176.3. Zurich Many investors were sidelined in the absence of significant developments on other Swiss financial markets and with United States markets closed. Changes were confined to a tight range in a market which lacked new incentives, and many operators continued to stay out of the market.

Some second-line issues were sought while blue chips were mostly neglected. The rising United States dollar contributed to caution among operators and price changes were small among leading issues. Prices finished the week mostly steady with the market receiving a small boost from the announcement that Credit Suisse will raise its dividend. Amsterdam Investors stayed away because of a holiday in the United States and closure of several bourses in neighbouring countries because of a carnival and a domestic seasonal holiday. But continuing favourable economic fundamentals helped maintain the market’s firm undertone and the slightly higher United States dollar also had an impact on share prices. The surge of the dollar was cited as a major strengthening factor with both domestic and foreign demand. Institutional and private investors were particularly active. In mid-week, the all-share index rose to an all-time high of 204.4 but many in-

vestors were staying on the sidelines, looking to Wall Street, and awaiting the outcome of the new state loan tender. The market was then described as lacking clarity, making investors reluctant to enter. Prices finished the week mixed in active trading with continued profit-taking and some position-squaring ahead of the week-end applying pressure. The all-share index closed at 204.1. Johannesburg Gold shares began quietly firm in response to the slightly stronger bullion price, but the rest of the market was generally little changed, with gains mostly small. Gold issues were then mixed with a firmer bias, buoyed by a sharply weaker rand and despite a lower bullion price, as the United States dollar surged back to record highs. Gold shares then fell sharply as the bullion price weakened on the dollar’s further gains to new highs. They finished the week quietly easier as the gold price remained below SUS3OO an ounce.