Broker comment

Press, 11 October 1986, Page 23

Broker comment

Investors were taken on a high-flying .ride this week as share prices soared and lost all sense of gravity, said Mr John Hutchinson, market operator for the Christchurch shai’ebroking firm, Anderson Reid and Company. The Barclays index gained no less than 70 points during the week reaching all-time highs of 3 successive days trading. It is interesting to note that this shows a rise in the index of 70 per cent plus, since late January. The true high flyers of the week came from the investment and property sectors, pushed higher and higher by constant buying pressure as investors scrambled to buy into these stocks. Equiticorp, Rainbow, Robt Jones and Capital Markets were all in demand, with the latter appearing to mirror the fortunes of KZ7 of Fremantle. The major drop of the week came from N.Z. Marine Farms which reported a serious loss in salmon stock which pruned the share price back 50c. The loss in stock apparently occurred in January. So it does seem odd that it has only just been announced now. Brierley’s result, announced last Friday, was well anticipated and had little impact on the market, although its share price did firm later in the week. Over all the market was very strong and it closed on a firm note with a few stocks finishing on new highs. “Next week I would expect the trend to continue in the main, but a correction somewhere along the way may well be expected, as often happens, when the market has experienced a period of sudden growth. “Some investors may well begin selective selling soon in preparation for the coming rights issues from Brierley’s, lEL, lEP, Ariadne and others, Mr Hutchinson said.