THE MARKET Improvement shown in late trading

Press, 14 March 1985, Page 31

THE MARKET Improvement shown in late trading

The New Zealand sharemarket began to firm yesterday afternoon, after trading nervously in the morning in spite of sharp falls in interest rates. Barclays’ index of industrial shares rose 2.93 points to 1438.11, and turnover was slightly higher at 4,082,971 shares worth $4,976,080, for a lower average value per share. Although the market has been held back by high interest rates, it has shown great resilience and does not want to fall, said Mr Blake Nixon, an analyst with the Auckland sharebroking firm Jordan Sandman Smythe and Company. A base is being formed for the sharemarket to build on once it begins to respond to the excellent profit results from Fletcher Challenge and Brierley Investments.

Mr Tony Norbert-Munns, of the Christchurch firm Egden Wignail and Company, said that the market began to show signs of improvement towards the close of trading, now that’ interest rates are really coming down. As the money markets return to normal, the sharemarket will move up sharply as investors withdraw money from fixed-

interest markets and put it back into equities, Mr Nor-bert-Munns said. “A point of interest is the continuing interest in the FTC share price,” he said. Rises and falls were in balance, as were market leaders, but the real heavyweights were all among the rises. Fletcher Challenge rose 2c to 325 c in advance of the announcement of the booming $lOO million interim profit later in the day. Brierley Investments gained 4c to 420 c and NZI Corp was up by the same amount to 163 c. There was a large special sale of 700,000 NZI options at 86c against 88c on-market. NZ Forest Products added 3c to 298 c as did Winstones at 173 c, and EMCO at 265 c. Unmoved were Wattie Industries on 345 and AHI on 305. There was a large special sale of Motor Holdings, the second recently — 266,500 sold at 175 c compared with 160 c, up 10c on-market. NZ Salmon was one of the other rises, jumping 5c to 345 c. A parcel of 201,000 Southland Frozen Meat shares sold at 155 c, unchanged. Leaders to fall included

ANZ Banking down 5c to 310 c, Goodman Group down 3c to 305 c, and Progressive Enterprises down 1c to 404 c.