THE MARKET Selective rally pushes index

Press, 2 July 1985, Page 27

THE MARKET Selective rally pushes index

Barclays’ index of industrial shares yesterday rose to within half a point of its record high of 1608.24 set on May 20. The index closed at 1607.71, 7.93 points higher than Friday, on a selective rally that was limited mainly to market leaders. Volume was low — only 2,378,032 shares changed hands, worth $3,210,566. Brokers said that overseas interest in New Zealand shares had been kindled by a firmer exchange rate and signs of a stronger economy. Prices firmed on an active market, with Brierly Investments standing out, said Mr Humphrey Sherratt, market operator with the Christchurch sharebroking firm Anderson and Reid.

There was also good buying support for situation stocks such as Blandford, Eastern Deer, and Queenstown Resources, Mr Sherratt said. Mr Derek Wickenden, of Finch Webster and Nathan, Wellington sharebroker, said that the market was extremely firm on low turnover. He attributed the firm trend mainly to two factors — Alex Harvey money coming back into the market and newspaper comment on Australian interest in New Zealand shares.

Brierley Investments was largely responsible for the rise in the index with a rise of 12c to 495. One broker said the stocl had been taken up or speculation that it may become listed in Australia. Alex Harvey Industries caught up 10c to 340 after going through a lull in trading last week. Other gains among the leaders were ANZ Banking up 5c to 290, Farmers Trading Company up 3c to 139. Crown up 3c to 168, Wattie Industries up 3c to 390, NZ Forest Products, up 2c to 267, NZI Corp, up 2c to 184, Fletcher Challenge up lc to 323, and UEB up lc to 161. Falls were chalked up by Lion Breweries, down 7c to 305, Cable Price Downer, down 5c to 350, Carter Holt down 4c to 296, Goodman down 2c to 388, Feltex down lc to 272, Fisher and Paykel down lc to 342. The mining index reached a new high for the year at 90.49, up 1.33. Brokers said that, unlike the industrial index, the mining index was unweighted, and companies with small market capitalisation ratings, such as NZ Petroleum and NZ Oil and Gas, could have had a bolstering effect on that sector.