THE MARKET Downward trend persists

Press, 30 August 1985, Page 8

THE MARKET Downward trend persists

The New Zealand sharemarket did yesterday what analysts expected it to do for quite some time, and lost more than one per cent, knocking Barclays’ index of industrial shares down almost 20 points to 1705.47. High interest rates and a strong New Zealand dollar did not hold, but basically the market has had nowhere to go, and there were no new factors to persuade it to change direction.

However, there was no panic selling, and trading was quiet.

“A fairly rugged day by recent standards,” said Mr Max Mathias, market operator for Lawrence Millton Howarth, a Christchurch sharebroker.

“There was very little depth to trading, and the negative talk around is not helping the sharemarket decide where to go.” Mr David Auton, market operator for Frank Renouf and Co, a Wellington broking firm, said that the market was weak, but that this had been expected by analysts for a long time. As a chartist, Mr Auton said that the market had broken through a previous support level and was now headed for a probably 1680 on the index. Some brokers said that there had been a withdrawal of institutional buying interest and offshore investors were now coming to grips with the fact that the kiwi dollar had remained strong for longer than was previously thought.

Turnover was down at 3,361,839 worth $6,137,110.

Seventeen market leaders fell in price, while the remaining four closed unchanged.

Brierley Investments topped the list, shedding 11c to 565, followed by Wattie Industries, down 10c to 445, and Equiticorp down 10c to

255. Other leaders to fall were Carter Holt, down 8c to 220, Waitaki NZR, down 5c to 225, Fletcher Challenge, down 5c to 315, and Progressive Enterprises down 5c to 370.

Losing 3c were UEB at 155, Lion Breweries at 365, Goodman at 350, and Dominion Breweries at 282.

Fisher and Paykel fell 2c to 310, NZI Corp 2c to 173, Farmers Trading Company 2c to 148, NZ Forest Products 2c to 245, Feltex 1c to 192 and Winstone down 1c to 167.

Thoroughbred Holdings, newly-listed yesterday, debuted strongly on the Stock Exchange, the 50c shares closing at 90c.