THE MARKET Index surges to new high

Press, 3 July 1985, Page 35

THE MARKET Index surges to new high

A jump of 49c by Lion shares after an on-market bid by the Myers family interests for 10 per cent of Lion Breweries’ capital saw the Barclays index of industrial shares surge no less than 24.32 points to an alltime high of 1632.03 yesterday. Almost 2 million shares changed hands, boosting national turnover to 5.2 million shares, but some were bought by speculators, buying through two Auckland sharebrokers, who, however, had pulled out by the end of the day. The bid was $3.50 a share but the shares were pushed to 372 c at one stage of the morning, and closed at 360 c. The sharebroker handling the bid, Jarden and Company, had advised the stock exchange that if it had to pay more than 350 c it would pay the higher amount to

everyone who had sold to Jarden’s during the next three months. Brierley Investments was the other share to stand out, closing 7c higher at 502 c after touching a high of 505 c during Monday. Market leaders and shares of the first rank predominated among the rises, although most price changes were small. “After several trading days of indecision and lack of direction, the sharemarket received yesterday the tonic it badly needed,” said Mr Tony NorbertMunns, the operating partner of Edgen Wignall and Company, Christchurch sharebroker. “The bid of the Myers family for an additional 10 per cent of Lion Breweries caused the whole market to move up sharply, as investors realised that a further $27 million will prob-

ably be reinvested in the next few days.” Clearly there is a shortage of scrip in ale sectors, which is compounding the rising trend, and turnovers may be expected to increase until the money from the Lion shares has been redistributed, Mr NorbertMunns said. Mr Paul Nicolson, market operator for Buttle Wilson and Company, Auckland sharebroker, said that the market was significantly stronger, more because of lack of scrip than sustained buying, as the “numbers were not great.”

Lion Breweries and Brierley’s stood out, and on the whole the market is being carried by half a dozen stocks that are performing well while the rest of the market is rather “ho-hum,” Mr Nicolson said. Dominion Breweries and Wattie Industries rose 10c

each. DB’s profit announcement is due today, and brokers attributed Wattle’s rise to shortage of scrip. NZI Corporation was actively sought: 218,800 shares were crossed with the closing price up 5c to 189 c. Waitaki NZR, at 225, Smiths City Market, at 440, Mair, at 385, Marac, at 200, Fernz, at 260, Allflex, at .340, and Progressive Enterprises, at 315, all rose sc. Fletchers put on 4c to 327, Forest Products, Newmans, and NZ Steel rose 3c each, and 2c gains were made by Goodman, Feltex, Ceramco, and Alliance Textiles. I. W. Dow, Pacer, Huttons, and Apparel were the biggest losers, shedding 10c each. NZ Gold Fields was actively traded, including a special sale of 100,000 shares at 110 c — up 22c on the day. Sales — page 37.