THE MARKET Index at new peak

Press, 25 July 1985, Page 23

THE MARKET Index at new peak

The New Zealand sharemarket continued its strong trend yesterday and climbed to a new peak, as Barclays’ index of industrial shares rose 13.03 points to 1751.84. on a turnover of 4.2 million shares worth $7.3 million. Trading was highlighted by a huge price jump by Progressive Enterprises. The Auckland-based ‘•Foodtown” supermarket and fast-food chain operator closed 40c higher at 375, and its rights gained 28c to 140. Wellington brokers were at a loss to explain such a sharp rise for a market leader. “It was strongly bid up, but we don’t know why,” said one broker. “There’s been nothing new announced or anything like that.” Progressive announced new supermarket development plans several weeks ago, and last month at least one firm of brokers tipped

it as a stock to buy. But its shares have been trading on a mixed note lately. The strongest share in a strong market was Progressive Enterprises, said Mr John Rattray, of O’Connor Grieve and Co., Wellington sharebroker. “It was in keen demand, on small buying from Auckland. It kind of looked as if it had been written up in a stock market letter.” Elsewhere the market remained pretty firm, with buying through some Auckland brokers suggesting overseas interest. “The experience of our firm is that the New Zealand institutions are sitting rather than buying, Mr Rattray said. “A very active and firm market, remaining resilient on a lot of overseas institutional buying,” said Mr Tim Preston, of the Christchurch sharebroking firm, Hamilton Hindin and Greene.

There is still a shortage of scrip, and it is hard to see what is going to push this market down, Mr Preston said. A couple of sizeable parcels of Waitaki NZR shares changed hands at rising prices; market rumours have it that Wattie is increasing its holding. At the same time there seems to be some position taking in Watties itself, which maintained its run of 10c daily rises by closing at 455 c. Other leaders featuring among the rises were Cable Price Downer up 8c to 390, and UEB firming 7c to 177. Five cent rises were recorded by Carter Holt at 285 and Goodman at 425. Up 3c were Brierley at 540 and Dominion Breweries at 288, while NZ Forest Products edged up 2c to 292, and Fletcher Challenge at 344 and NZI Corp at 219 each put on Ic.

Leaders going against the trend were Crown, down 5c at 170, and Fisher and Paykel down 1c at 338. Mount Cook, ardently wooed by Air New Zealand and Newmans, jumped 35c to 465. The small parcels traded reflected the shortage of available shares. United Transport, to become a new investment vehicle, followed a 20c rise on Tuesday with a 30c jump to 265. Rising 10c were BNZ Finance at 240, Equiticorp at 290, and Morrison-PIM at 420. Down 10c were Irvin and Stern at 90 and Charter Corporation at 110. Angora Corporation, the new goat breeding venture, had a quiet debut on the sharemarket, trading between 45c and 48c before closing at 46c. The 40c par shares were issued at a 10c premium.