Holiday season share trading

Press, 29 December 1986, Page 18

Holiday season share trading

NZPA-AAP New York Share prices moved moderately higher in New York on Friday in one of the slowest trading sessions of the year. The Dow Jones average of 30 industrials rose 3.52 points to close at 1930.40, bringing its gain for the week to 1.55 points. As is typical on the day after Christmas, many market participants left work early or already were gone for a long holiday weekend. Financial markets were

closed on Christmas Day. Trading slowed sharply from Wednesday, which was the slowest trading day in nearly a month. Stock prices moved within a narrow range for much of the session, briefly pushing higher in late trading before settling back. Analysts said much of the tax-related selling of the early week — when many investors sold holdings to take profits under this year’s more favourable capital gains tax rate — probably had ended, and market gains and losses were reflecting seasonal factors rather than broad trends.

Some market watchers expected moderate advances through year end as investors bought stocks they believed remained bargain priced, or as portfolio managers added well-performing issues to their holdings to close out 1986. Australia Take-over play,., higher oil prices, and the prospect of lower interest rates boosted sentiment on Australian share markets during the two and a half days of trading last week. Key market indices closed

a few points off their all time highs as investors took profits ahead of the Christmas break after three consecutive days of record closes, they said. Herald and Weekly . Times shares finished the week s(tc firmer at 1290 c after reaching 1300 c when Holmes a Court's Bell Group subsidiary J. N. Taylor Holdings announced a counter-bid. Fairfax shares finished steady at 1100, News Corp was also unchanged at 1690 c, and Herald associate Queensland Press put on 10c to 1660. Banking stocks fared poorly, despite heavy turn-

over as institutions bought stock to take advantage of tax-free dividends. The National Australia Bank lost 40c to 560, Westpac fell 26c to 500 and the ANZ 2c to 584. London Share prices in London were generally firmer over the three day pre-Christmas week but volume was small. The market was buoyed mainly by the accord of the Organisation of Petroleum Exporting Countries over the week-end to limit production and lift prices. Equities also moved up on steadier sterling and a newspaper Gallup opinion poll showing Britain’s Conservative Party 8.5 per cent ahead of the opposition Labour party. U.S. dollar The U.S. dollar closed lower against most currencies in extremely thin trading in New York on Friday after the Christmas holiday in a market driven by the action among the foreign currency futures in Chicago. The thin trading conditions exaggerated the dollar’s moves, particularly against the yen and Canadian dollar. The dollar ended at 159.75/ 85 yen.