Shares soar to new heights

Press, 19 February 1986, Page 35

Shares soar to new heights

Renewed corporate activity stimulated New Zealand shareholders across the board yesterday. Barclay’s index of industrial shares leapt 20.68 points to an all-time high of 2036.96 on a turnover of 9.3 million shares valued at $20.4 million — for the solid average of 218 c a share.

Investors have plenty of cash to re-invest, but quality scrip is short, driving prices up, with leading stocks particularly firm. “The sharemarket closed firm with another good rise in the Barclays index,” according to Mr Tim Preston, the market operator for the Christchurch sharebroking firm of Hamilton Hindin and Greene, “Further position taking in Farmers Trading rubbed off on to other stocks,” he said. “Also, the new Government deficit forecast of SI7OOM although higher than originally predicted, is still lower than the S2OOOM being predicted by many analysts, and this was seen as a positive factor by the market.” Mr Preston said the two-tier situation which has dominated market trading recently was again evident with the market leaders, Brierley’s, Chase, NZI and Fletchers, all keenly sought. Mr Andrew Buttle, client adviser for Buttle and Company, Auckland, said that the sharemarket

had a very buoyant day with prices generally firm across the board spearheaded by the market leaders. “The market is flush with cash as the 5 per cent bid for FTC puts money back into the market. In Auckland circles the bidder is believed to be friendly to the Chase interests, as the two holdings together (25 per cent) will be able to block special resolutions,” Mr Buttle said. Not surprisingly, FTC headed the gains, closing up 16c to 176 after 2.8

to 415, Watties to 345, and Lion to 490. L. D. Nathan, at 322, and Capital Markets, at 274, gained 4c each.

NZI Corporation, which had been bogged down for some time, enjoyed a spurt of 3c to 167 c.

Some 1.2 million Carter Holt shares changed hands at an unchanged 325 c a share. All were believed to be bought by the Auckland broking firm Morrow and Benjamin, who last week stood in the market for an unidentified client at 320 c. However, the bid for one million National Insurance shares by Guardian Royal Exchange, at 400 c plus escalation, is still lagging — Francis Allison Symes reported that they bought only 55,572 shares so far. National Insurance closed 2c higher at 402. One entrepreneurial share lost ground: Apex shed 10c to 370 c.

The largest falls, were among second-line stocks; NZ Salmon lost another 20c to 770 c; National Bloodstock and Mace gave up 15c each, to 425 and 405, while 10c losses were chalked up by Barclays at 210, Command at 250, NZ Equities at 240, and Waste Management at 200. Two other financiers also gave ground; Jarden Corporation 9c to 152 and IFC 8c to 125 c. NZ Steel continued its slide and closed 2c down at 68c. Share table, page 40