THE MARKET Sharp falls feature

Press, 24 May 1985, Page 10

THE MARKET Sharp falls feature

Sharp falls among companies that have just made big profits and bonus proposals was the feature of trading on the New Zealand Stock Exchange yesterday. The Barclays index fell 12.79 points to 1570.35, putting its losses for the last three trading sesssions at 37.89 points. Turn-over was a high 9.3 million shares, of which Oil Fields contributing shares accounted for 45 per cent of the total. Falls outnumbered rises by just under two to one.

A spokesman for an Auckland sharebroking firm, Paine Belcher and Company, said that many of the leading issues had been oversold, causing prices to drop. Included in this category was the ANZ Banking Group. NZI Corporation had also weakened after Australian buying interest had disappeared. The market showed its disappointment in Equiticorp not announcing another bonus issue. A bonus would have been surprising, even though the company came back with a good result, he said.

Jedi Corporation also dropped, but the spokesman attributed the fall to the high number of shares on issue. This meant that Jedi was always under selling pressure. Mrs Ellen Croxson, the market operator for Anderson Reid and Company, Christchurch, said the market seemed to be looking ahead to next month’s Budget, with the possibility that tax-free dividends might be knocked on the head. Also, the new issues coming out were taking funds away from the market, she said.

The bid by United Resources for 15 per cent of Oil Fields had little impact on other oil issues. Trading in Oil Fields contributing shares totalled 4/261,000 at the offer price of 16c. This is close to the asset backing. One operator said there had been a lot of pressure from Morrow and Benjamin, the Auckland brokers, for Premier and Spectrum in the afternoon call. Kiwifruit Industries, the horticulture float, made its debut yesterday, but held little joy for stags. The 50c shares traded at 51c and 52c, closing at the higher price. Issues to drop in spite of

good profit results were Carter Holt, Chase, Equiticorp, and Newmans. Mogal fell 15c to 180 c ahead of its result, and issues to close on their lows for the day included Brierley and N.Z. Forest Products. McConnell Dowell went against the trend, jumping 30c to 300 c on a one-for-one bonus and a 50 per cent profit improvement.