BROKER COMMENT Bullish trend to continue

Press, 14 December 1985, Page 22

BROKER COMMENT Bullish trend to continue

Another brisk and busy day on the New Zealand market yesterday, said Mr Martin Harriman, of Creagh Harriman McKenzie and Company, Auckland sharebroker. “The market observers are once again being outguessed by the market,” he said, “as it behaves contrary to all expectations.” “One would have thought that, because of the latest Government economic package, the market had some imponderables to digest. A stock such as Fisher and Paykel, for instance, stood up remarkably well.” “There is still some cash being recycled from previous market stands, and there are still new entrants

into the market, so it looks if this bull run will not be so easily stopped. Easing interest rates and an easier New Zealand dollar are also a big plus,” Mr Harriman said.

“The increase in equity prices continued at a rate which could not have been anticipated during the week under review,” said Mr Brian Kreft, partner in the Dunedin sharebroking firm Forsyth Barr and Company. “The main reason advanced for this is the expectation of a decrease in the rate of inflation. As evidence we have the small rise in the consumer price index for the quarter just ended, lower interest rates in yesterday’s Government

Stock Tender, and now the falling New Zealand dollar. “While it will take some time for these factors to flow through the various economic structures, there appears little doubt that Government policies now appear to be having an effect. “Brierley and Chase have continued to dominate the market throughout the week, with Friday showing some upward movement in exporting and manufacturing stocks, reflecting the changed profit outlook as a result of the falling dollar.

“Investment and property companies continue to capture the market’s attention, and the flow-on effect which

began to manifest itself two weeks ago into second-line stocks is now gathering momentum. “Second-line stocks which the charts show warrant attention are Omnicorp, Horizon, and Hallenstein Bros. “The freezing industry sector with the exception of Apex has been quiet of recent times though there has been some increase in the turnover of Southland Frozen Meat, while NZI continues to attract speulative attention despite measures taken to counter rumours of a possible overseas move on the stock,” Mr Kreft said.