THE MARKET Easier trend continues

Press, 12 March 1985, Page 27

THE MARKET Easier trend continues

As predicted by most market watchers on Friday, the New Zealand sharemarket continued to weaken yesterday. Falls outnumbered rises more than two to one, and among market leaders and firsttime stocks the proportion was actually worse — more like three to one. Turnover at 3.5 million shares was moderate, and it could hardly be said that sellers were in command, even if they were in the majority. The oil sector of the market was quite active. The sustained high level of interest rates is undoubtedly responsible for the

easier tone, and it is remarkable that under the circumstances the market is not weaker than it is. Barclays index of industrial shares only lost 7.06 points to 1441.63. Gains by a few leaders put some brake on the market’s fall against the trend went Brierley Investments, which gained one cent to 415 c after its excellent

profit report, while NZ Forest Products and NZI Corp put on 2c each, Emco rose 5c to 265 c, and Waitaki was one cent better at 190 c. Wattie Industries and Henry Berry chalked up the largest falls, of 15c to 345 c and 155 c. Ceramco lost 12c to 330 c, and 10c falls were

posted by Carter Holt, LD Nathan, and UEB, and the two newcomers, Irvin and Stern, and Eastern Deer. Winstone, National Insurance, Mair and Allflex gave up 5c each, while Alliance lost 6c to 172 c. Two and one cent falls were numerous, and included Bendon, Newmans, NZ Cement, Skellerup, NZ Marine Farmers, and Motor Holdings. The market seemed very weak, said Mr Humphrey Sherratt, of Anderson and Reid, the Christchurch brokers. “Falls outnumbered rises by quite a large margin, and almost all market leaders were down.

“The exception was Brierley Investments, which was virtually steady on a very good result yesterday,” Mr Sherratt said. The sharemarket is holding up too well, said an Auckland broker, which he thought was bad as it increased the uncertainty over what would happen when interest rates settle down.

The market remained firm for two reasons, he said. First, the shortage of scrip because of the corporate position taking, and second, the liquid position of the institutions which brought them into the markets as soon as prices fell a reasonable amount.