THE MARKET NZFP bid enlivens dull trading

Press, 2 April 1985, Page 35

THE MARKET NZFP bid enlivens dull trading

A partial counter to Carter Holt’s bid for Alex Harvey Industries enlivened an otherwise dull New Zealand share market yesterday, when NZ Forest Products announced a stand in the market to buy up to 10 per cent of AHI, or about 15 million shares. AHI is already under a full take-over offer from another “top 10” company, Carter Holt Holdings, Ltd, also at 365 c. Carter Holt’s executive chairman, Mr R. H. A. Carter, advised the Stock Exchange yesterday that the market stand by NZFP did not in any way affect the bid by Carter Holt for all AHI shares. The AHI board advised on Friday that it was still considering the Carter Holt offer, and it advised shareholders not to sell in the meantime. There was no early reaction from AHI yesterday to the latest move. The sharp rise in the price of Alex Harvey shares, and small gains by other market leaders, showed up in an increase in

Barclays’ index of industrial shares of 8.78 points to 1471.31. The sharemarket had a very quiet, almost dull day yesterday, said Mr David Dott, a partner in the Christchurch sharebroking firm, Chamberlain Sturge and Co. “Although the market was firm, Alex Harvey shares had the only rise of any consequence, opening at 365 c — up 20c — climbing to 368 c at one stage, and closing once again at 365 — up 20c on the day. “Because of the short week leading up to Easter, the next two and a half days are likely to be quiet, although firm.” Mr Garth Williams, a partner in Fraser, Cornwell Williams and Co., Auckland sharebroker, said that the market was reasonably busy, fuelled by the activity in Alex Harvey shares, and the re-investment of proceeds in other shares. “While shares like NZI Corp, just plod along, property shares such as Mainstay and Williams have been in demand, as in-

vestors begin to realise that the lifting of restrictions will advance these shares. Market leaders to chalk up small gains were Fletchers, 1c to 323 c, Brierley Investments 1c to 440 c, NZ Forest Products 2c to 300 c, and NZI Corp., 3c to 162 c. Goodman Group, at 310 c, and LD Nathan, at 440 c, put on 5c each. There was a special sale of 3.1 million Equiticorp 13¥z per cent non-convert-ible preference shares at 39c. The sale price gives a yield of 17.3 per cent, and has no bearing on the capital of Equiticorp.