Brief pause but no alarm

Press, 30 August 1986, Page 24

Brief pause but no alarm

The sharemarket came off the boil for most of the week, as investors decided to take a profit and sit on the sideline, said Mr John Hutchinson, market operator for the Christchurch sharebroker, Harkness and Company. The result was a small drop in the Barclays index during the week, but with it closing three points up on last Friday. “The sell-off had no air of alarm despite Sir Robert Muldoon’s bearish comments during the week. The highlight of Monday’s trading was the listing of the well publicised Wellesley Resources. Its' listing price around the $3 mark was much as expected, and provided a healthy profit for stags.

Tuesday saw a quiet day’s trading with prices soft and most top-tier stocks losing ground. Wednesday and Thursday followed in a similar vane with much reduced

volume, giving brokers a chance to catch up on a massive backlog. Lack of corporate activity and few buying orders did little to keep prices up. To close the week Friday’s trading was a lot more buoyant with prices markedly firmer especially in the afternoon session. Apex stood out with a sizeable gain on rumours of a possible take-over. Brierley’s and Equiticorp were also keenly sought, with the latter’s associate, Equiticorp Tasman, being rumoured to have sold its BHP stake.

Over all the market finished on a firm note which should continue in the early part of next week if the corporate activity and yesterday’s rumours continue. In the main I expect the market to drift a little inbetween buying sprees and corporate activity, but any bearish sentiments will be short-lived.