Record share trading
NZPA-Reuter London
Leading stock exchanges around the world from Tokyo, Frankfurt, Zurich to Wall Street look poised for further gains after ending the first half of 1985 in record-breaking form. Continental European exchanges, in particular, have enjoyed a sparkling revival, with share prices in Milan up 57 per cent, Frankfurt and Paris up 27 per cent, and Zurich up 19 per cent since the beginning of 1985. Bargain-hunters on Wall Street pushed share prices to a record close of 1335 last Friday. The Dow Jones industrial average of 30 leading United States shares eventually broke through the psychological 1300 level on May 20 after two years in the doldrums and triggered market talk of further rapid gains before the end of the
year. Tokyo, which also closed at a record level on Friday, saw a gain of 11.5 per cent on the Nikkei-Dow Jones market average index in the first six months of 1985.
Only London, of the major world financial centres, ended the first half of 1985 with average share prices at a lower level, after a rapid fall from a record 1024.5 touched in January and again in May. The Financial Times 30-share index closed on Friday at 938.6, down 0.2 per cent from the start of 1985.
Higher share prices on Wall Street in the first half of 1985 were achieved in spite of evidence of a weaker United States economy as investors revelled at the prospect of higher company profits resulting from lower interest rates, stock market analysts said.
Miss Elizabeth Frank, portfolio manager for Wood, Struthers and Winthrop management, said: “We look for a modest uptrend in economic activity in the second half. The bad news is that corporate profits will be flat to down this year.” In Hong Kong, the Hang Seng index closed at 1570.61 on Friday, up 29 per cent since the beginning of 1985.
The London Stock Market, which touched record levels in May, has suffered a significant shakeout in the past five weeks, which some analysts had been predicting since the beginning of 1985. Now they expect shares to recover.
In Europe, the leading continental stock markets have all enjoyed an influx of foreign capital, especially from the United States, and average share prices are at or near record levels.
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Press, 2 July 1985, Page 26
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383Record share trading Press, 2 July 1985, Page 26
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