Around the bourses

Press, 24 June 1985, Page 32

Around the bourses

Amsterdam Prices turned mixed during the week, with declines outnumbering advances in fairly quiet trading. The higher dollar had little impact on Dutch internationals, while favourable U.S. data did not affect the market generally. At the close, the usual position squaring by professionals ahead of the weekend caused several shares to fall back from earlier levels. Thursday’s announcement that KLM is to pay its first dividend for five years had little impact on its shares which fell 0.40 guilders to 58.50. Banks also slipped further back from opening levels. Frankfurt The week ended with the Commerzbank 60 stock index at its fourth consecutive record, and individual blue chips continuing to score spectacular gains. A dealer said earlier in the week “Investors are chasing everything — it’s unbelievable.”

The market has been boosted mainly by continuing expectations of falling U.S. and German interest rates, and bullish forecasts for German corporate earnings. The index rose to 1427.1 from 1417.7 on Thursday and is at the eighth record set this month, as the powerful rally continues almost uninterrupted. Yet another boost to trading was Friday’s news that the Bundesbank is urging an abolition of bourse turnover tax. Hong Kong After a slow start which saw prices lower, the market gained momentum and closed sharply higher, buoyed by renewed confidence in the banking sector. Brokers said US investors, bargain hunting for blue chips, were the major buying force. The market was also aided by expectations of an interest rate cut and after the close, the HK Association of Banks announced a cut in the local prime to 8.0

per cent from 8.5 per cent. Highly liquid local investment funds supported the advance at the close, pushing the Hang Seng 18.98 points higher to 1561.13. Investors were also encouraged by the US flash GNP data. Swire Pacific “A” rose 80c to $23, and Jardine Matheson 10 to $11.40. Johannesburg After a midweek surge, in answer to a stronger bullion price, gold shares closed mostly easier in an otherwise featureless market. Heavyweight losses stretched to two Rand, as in Winkelhaak at 57 Rand. Cheaper share losses ranged to 30 cents, as in Sallies at 5.40. A few shares firmed slightly against the trend among them Harmony and Doorfontein. Financials were mixed, while other minings were quietly firm. Singapore Shares recovered marginally to close slightly higher,

after mixed earlier sessions. Price changes were small while the closure of the Kuala Lumpur stock exchange dampened sentiment slightly. The “Straits Times” index rose 2.3 points to 784.66, and the Stock Exchange allshare index closed at 277.30, up 0.45. Promet led the actives with a one cent rise to $1.39, Pan Electric rose 5c to 2.48, while Tuan Sing Holdings eased half a cent to 49.5. Tokyo Selected trading houses, railways, and machineries led the climb early in the week and were joined later by financials, utilities, oils, and most leading drugs. However, a bearish sentiment prevailed at the close, in reaction to the sharp drop of the yen’s exchange value against the dollar. The market average lost 43.21 at the close to 12,634.76. The yen’s fall depressed oils and power firms, and some trading houses declined on higher U.S. interest rate levels.

International populars ended mixed. Sony fell 20 to

3780 and Hitachi 5 to 702, but Fujitsu gained 8 to 979 and TDK 60 to 4500, mainly on buying at lows. Large-capital shares weakened slightly, with Nippon Steel down one to 168. Zurich Domestic stocks continued firm during the week on selective demand for in-terest-sensitive stocks and the transport sector. At the close, prices were steady as investors responded to favourable economic and corporate news. Swiss gross domestic product growth quickened slightly to 2.0 per cent in the first quarter, after an increase of 1.9 per cent in the fourth quarter last year. In pre-bourse dealings, tour operator Kuoni gained 1750 francs to a record 11,750 on further consideration of annual results. EMS-Chemie was also up 35 francs to a new high for the year of 11,610. Major banks felt the effects of some profit taking, while engineerings held steady and insurances ended little changed.