THE MARKET Brisk and firmer

Press, 17 June 1986, Page 26

THE MARKET Brisk and firmer

The New Zealand sharemarket firmed in more active trading, boosted by a further easing of the New Zealand dollar, falling interest rates, and less pressure from cash issues. Barclays’ index of industrial shares rose 17.35 points to 2519.01, on the much better turnover of 7.6 million shares. The total was worth $22.8 million — a very high average of 300 c a share.

The average was boosted by the large number of Fletcher Challenge shares: more than 2 million were crossed, at 410 c a share. Fletchers closed at 405 c — 5c up on the day.

The rebound of the Dow Jones industrials index encouraged sentiment, and negated stupid talk of a repeat of the 1929 crash. When the Dow Jones recovered 36 points after losing 45 points in the same week, it reassured investors, and

stimulated overseas interest.

Rises outnumbered falls almost five to two. “There was a much better feel about the sharemarket yesterday,” said Mr David Dott, partner in the Christchurch sharebroking firm Chamberlain Sturge and Company. “The week opened on a bright note with prices firm in brisk trading,” he said.

“The combination of a fall in interest rates and exchange rates seems to be to investors’ liking.

“The international stocks — so-called — all firmed, and the offshoots of Brierley Investments, lEP and TKM, made good gains.

“Provided the exchange rate does not go up again, the indications for the sharemarket remain good in the near future,” Mr Dott said.

lEP, the Hong Kong subsidiary of Brierley Investments, had the biggest gain —130 c to 1150 c,

partly as a result of the weaker Kiwi dollar.

Chase added 15c, to 1095, and Lion at 460 was 8c down on its theoretical price on going ex its two-for-three bonus issue. Other leaders to firm included Wilson and Horton 10c to 630, DB 5c to 435, Goodman Fielder 5c to 455, L. D. Nathan 5c to 435, NZI 3c to 192, Apex 3c to 348, Winstone 3c to 148, and NZFP 2c to 230.

Leaders to ease were Carter Holt Harvey 4c to 388, and Waitaki 2c to 136.

Elsewhere, Pacer added another 15c to 720 as did Brierley’s take-over target, Colonial Motors, 15c to 390. Arnold and Wright, to be taken over under a scheme with Tag, rose Isc to 400.

Easing stocks included Beta Corp 15c to 325, Ivon Watkins Dow 12c to 258, and Montana 5c to 170. PDL recovered 10c to 220 c, NZ Salmon also put on 10c, to 520, and Ebos rose 15c to 380 c. x