Market slip eases

Press, 9 January 1987, Page 14

Market slip eases

The decline in share prices tapered to a small 4.12 point fall in the Barclays index yesterday on slightly higher volume, but still about half the trading of typical days in the last year. However, it was the market leaders who braked the fail which has continued since the market opened for 1987 on Monday. In total 104 issues fell In price yesterday, compared with 70 to rise. .The volume was 7,619,211 for a value of $18,066,573, compared with 6,700,000, valued at SI4M, on Wednesday.

Mr Nigel Kerr, market Operator of the Timaru broker, J. S. Satterthwalte and Company, said it was disappointing that Brierley’s was down again (4c to 635). lEP (down 6c at 710), and TKM (down 3c to 465) were other Brierley issues to fare poorly. .The falls were surprising

with the bonus issue coming up for Brierley shares on January 21 and with lEL prices holding up in Australia.

Mr Kerr believes that some of the pressure on the market this week is because of the dearth of international investors.

Some shares made good recoveries in yesterday's trading, Mr Kerr said. These included Renouf, up 15c at 630, Robt Jones, up 10c at 275, and Wilson Neill, up 50c at 1500.

European Pacific, the international banking and trust investment company dominated by Brierley’s, Fay Richwhite (through Capital Markets), and the Bank of New Zealand, seems to have bounced back into favour. After opening on the exchange at 3150 on Tuesday, and falling to 3000 on Wednesday, it was at 3200 yesterday. Wormaid International N.Z., Ltd, was up 8c at 260. Large things are astir for this company. The parent firm. Wormaid International, Ltd, controlled by Mr Lee Ming Tee, the Australian magnate, is reconstructing overseas. A number of Australian companies are shifting ownership of their overseas

operations out of Australia to avoid a new Australian tax measure, the foreign tax credit scheme, which comes into effect on July 1. The Australian parent is selling down its equity, in Wonnald N.Z. to 49.89 per cent, reports the “Bulletin.” The Australian parent will then sell its Asia-Pacific activities into the deconsolidated New Zealand company, which will become the vehicle for expansion in the Pacific Basin.

The Wormaid companies are a major force in fire protection, and a growing force in general industrial electronics.

Among locally based, issues, Applefields was down 15c to 100,- Brother, down 60c at 1400, Ernest Adams up 5c at 210, Mainstay was up 5c at 140, Marine Farms up 9c at 177, Smiths City Market was up 4c at 185, Skellerup was down 2c at 142, Transpac was down 20c at 140, Trans-Ash-burton was down 10c at 280, and Waitaki International was 2c firmer at 185. Trading in Mainstay has been heavy and there is speculation in the market that an announcement of interest will be made this month.