THE MARKET Sharp falls

Press, 10 July 1985, Page 34

THE MARKET Sharp falls

The predicted profit-taking became a reality on the New Zealand sharemarket yesterday, and most market observers think that it will continue today. Barclays’ index of industrial shares fell 10.58 points to 1688.84 — most of it in the afternoon. The turnover was 4.4 million shares worth $7.3 million. The reinvestment of the proceeds of the Lion bid has obviously come to an end, said Mr Max Mathias, of the Christchurch sharebroking firm, Lawrence Millton and Howarth. “The market lost ground generally, and will probably be like that for a few days. One of the brightest spots was NZI Corp., up 3c to 202 c, and the options gaining 5c to 112 c,” Mr Mathias said. Although the market has been strongly underpinned by the reinvestment of the cash proceeds of recent take-overs, we would expect it to level off in any case, said Mr G. R. Cleland-Pottie, of the Auckland broking firm, Frater Cornwell Williams and Company. Both the September tax-

drain and the uncertainty surrounding the forthcoming Bud- , get will begin to take their toll soon, he said. Among the leaders Fletcher Challenge, one of the most sought-after stocks of late, was marked down 13c to 330, and Goodman Group lost 10c to 410, the biggest falls among leaders. Other falls included ANZ Banking Group, 7c to 298, Feltex, 5c to 285, and NZ Forest Products, 2c to 281. Some leaders, however, posted small gains: Waitaki NZR rose 5c to 245, Cable Price Downer, 4c to 362, NZI Corp, 3c to 202, and Brierley Investments, 2c to 502. Elsewhere there were still some fairly substantial rises. PDL regained 15c to 530, after a 10c fall on Monday. Rising on predictions of good future growth prospects were Brother up 10c to 255, and Trans-Ashburton, subject to a take-over bid, gained 10c. The $8 million Tauranga floricultural float, Greenhouse Park, Ltd, achieved subscriptions of nearly 80 per cent of the total sought when it opened yesterday.