THE MARKET Prices react to dollar
The quite unexpected and large fall of the New Zealand dollar, pushed the New Zealand sharemarket to unprecedented highs yesterday, with leaders finning across the board, and the Barclays index of industrial shares finning 33.84 points to almost 1900 — a record.
“Exporters aside, the Kiwi’s fall is also good for the market generally, because overseas buyers can come in, and buy more shares with their currency,” said one broker. Also, a fall in the New Zealand dollar has to be good for assets.
“The dollar collapse made for a hectic day of trading right across the board, with strong buying support everywhere,” said Mr Tim Preston,
market operator for Hamilton, Hindin and Greene, Christchurch sharebroker.
Mr Richard Boulton, of the same Christchurch sharebroking firm, Hamilton, Hindin, and Greene, said that the market was very active, with institutions trading both ways. There were not many indications of a transfer of money from fixed interest to equity investment, he said, but some money released for TCDs, went into short-term money or equities because of tax considerations, Mr Boulton said.
One of the major exporting manufacturers, Fisher and Paykel, put on 25c to 290. Also up by 25c was the investment company, Equiticorp, which closed at 400 — well short of
the value one firm of brokers put on it in the latest bullish report on the company. Other leading exporters to gain included NZ Forest Products, 12c to 238, Feltex 12c to 280, Fletcher Challenge, 10c to 350, Carter Holt Harvey, 7c to 282, Waitaki NZR 5c to 175, and Wattie 5c to 340, while NZI which has many overseas assets firmed 9c to 190. Elsewhere among the leaders, Progressive Enterprises firmed 10c to 340, and Brierley put on 7c to 822. Up 6c each were Chase at 574, FTC at 149 and Winstone at 160.
Goodman was the only leader to be marked down — 5c to 355 on going ex-dividend yesterday. Rainbow Corp, which stands
to gain a big profit from selling its stake in Queenstown Resorts, headed a long list of second-line risers with a 35c jump to 310. Another leisure park operator, Leisureland, picked up 13c to -155. Also firming were Wilson, and Horton, 30c to 650, NZ Salmon, 25c to 550, Mair, 25c to 260, Allflex, 15c to 270, Bendon, 10c to 320, and Ceramco 10c to 510. Among the few losers were L. D. Nathan, down 10c to 510, and Mt Cook, down 10c to 290 A special sale of 900,000 NZ Steel shares went through at 148 c, 8c above the market price. Sharemarket turnover was 7.0 million shares, worth $8.7 million.
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Press, 17 December 1985, Page 31
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441THE MARKET Prices react to dollar Press, 17 December 1985, Page 31
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