Around the bourses

Press, 27 May 1985, Page 26

Around the bourses

Amsterdam Prices firmed slightly, held their gains mid-week and then moved lower as investors in Amsterdam floundered in the absence of fresh signals. The market received a healthy boost from a record performance on Wall Street early in the week, but local investors generally ignored a cut in U.S. discount rates as uncertainty surfaced over the health of the U.S. economy. Turnovers were heavy at times, particularly in the middle of the week, as bouts of profit taking were ginterspersed with intermittent bargain hunting. But trading ended on a ouiet note with investors reluctant to take positions ahead of the holiday week-end. Frankfurt Strong foreign demand, cuts in domestic interest rates, and further encouraging corporate reports spurred the Frankfurt market index to a new series of record highs. Strong demand for selected shares from foreign institutional investors spilled over into stocks which were lagging behind and continued a three-week run of gains. Banking stocks were well supported, although some late profit taking took the edge off the strong advance on speculation that interest rates had bottomed. Zurich A strong rally which dominated trading in the first two days ran out of steam under an assault by profit takers and as investors switched to second-line issues in Zurich. Recently favoured blue chms, insurances, and banks tended slightly lower ahead of the holiday week-end, although brokers said profit taking was generally well absorbed by fresh buying orders as prices came off highs. Early demand was fuelled by a cut in US discount rates and an encouraging performance on Wall Street. Johannesburg Gold shares finished generally steady in Johannesburg last week after hesitant fluctuations in line with international bullion prices. Midweek turnovers were heavy as a sharp drop on international bullion markets sent gold shares reeling, only to recover the next day on higher gold prices. Industrials and banks attracted some support as cuts in domestic interest rates focused attention on sectors that have been sorely neglected in recent months. Hong Kong The tlong Kong market moved lower throughout the week as profit taking gathered momentum. Brokers said investors lacked a general incentive to enter the market although the steady decline was checked by a technical correction towards the end of the week. The market finished on a down trend, and some brokers predicted further con-

solidation this week as buying support waned in the face of institutional selling. But they said any setback would be brief. Tokyo Prices fluctuated wildly in Tokyo as profit taking and the downturn on Wall Street on Thursday eliminated earlier gains which had driven the market index to a new high. Wall Street’s fall undermined international populars and the approaching end of May transactions kept many investors on the sidelines as domestic oriented and speculative shares that led the rally early in the week fell back on profit taking. Turnovers were high as investors switched from export oriented shares to domestics on growing sentiment that exports are unreliable and unproSingapore Stocks moved lower over a broad front as early short covering and bullish sentiment quickly evaporated. Technical factors dominated business as profit taking triggered stop loss orders in fairly active trading. Early speculative buying among selected stocks which easily absorbed profit taking was not sustained as a generally bearish sentiment took hold on the market.