THE MARKET Quietly easier

Press, 5 December 1986, Page 25

THE MARKET Quietly easier

Selling pressure, with little buying support to counteract it, left the sharemarket looking weak at the close of trading yesterday. The Barclays Index fell 33.16 points to 3708.40, and but for a very few rises among leaders it would have been worse, brokers said.

Trading was relatively quiet, with a turnover of 9.8 million shares worth $24.2 million — an average of 248 c a share. There were almost three falls for every two rises. Investors, particularly private clients, had been unnerved by indications that the economy was not as healthy as it had appeared, and bearish sentiment had crept in, they said. Institutions had, for the most part, stayed away from the market. Brokers had different views of yesterday’s fall.

One said the market had been due for a correction, but some shares were now nearing an oversold position, and would probably improve. Firm overseas markets in the US and Australia also augured well for the local sharemarket.

“It’s not a good market,” another said. “Generally it firms up at this time of year — it's just not doing that,” he said. Brierley Investment’s rights trading, which closes today, could have put that stock under pressure, they said. BIL fell 12c to 640.

"People wait until the last minute to take them (the rights) up, and then decide to sell,” one broker said.

“The market weakened in the afternoon after a quiet but steady morning,” said Mr Tim Preston, market operator for Hamilton Hindin and Greene, Christchurch sharebroker. “Investors have taken stock of the economic news, and got the jitters again, bringing some sobriety back into the market,” he said. “Brierleys rights, which close this week-end, offer a cheap entry into the

company as they are selling for 330 c. “The firm interest rates are beginning to affect margin traders, but there is still basic support for leading stocks at certain levels,” Mr Preston said. Otherwise, leading stocks which had made recent rises bore the brunt of the selling. Wattle fell 25c to 580, Renouf Corp 18c to 600, ind Kupe Group 5c to 165. Down by 10c were Robt Jones to 290.