THE MARKET Overseas aid?

Press, 26 February 1987, Page 28

THE MARKET Overseas aid?

Share prices firmed markedly yesterday, possibly because of renewed overseas buying Interest. The market was led by the movement of Brierley’s, which ended 13c up at 428 in Wellington. Brokers said that there appeared to be buying Interest from Australia in the issue and this helped the market along. Brierley’s price fluctuated during the day, trading between 411 and 449 c. One market operator said that the buy quote was at 438 c in Auckland at the close. The New Zealand Stock Exchange Index, which accounts for all shares,

and convertible issue to ordinary units, on the market; was ahead 18.85 points to 1154.97. The more selective Barclays industrial index was up 36.16 to 3189.89 points.

Rises beat falls 92 to 79 on a. slim turnover of 7,257,793, worth 312.7 M. Mr Mike Daniels, a director of Morrow and Benjamin, an Auckland sharebroking .firm, said that the market had shown a lot of strength but not much volume.

Buying was light and if more sellers came into the market they could saturate the gains and cause price’s to slide, he said.

The deals between Renouf Corporation, Judge Corporation, Eure-National, Kupe Group, and Ariadne Australia, seemed to resemble a paper chase. Except for a 29c gain by Kupe, market reaction 'to the proposed deals was modest

Renouf Corporation added 8c to the 34c it gained on Tuesday, ,the day before the proposals.were reported to the Stock Exchange. Mr Daniels said the deals were “a-bit hard to follow" and the'market , reaction to the tie-up was “nothing fantastic.”

The proposed transactions had not brought a cash Injection into the market, although Euro-National would end up being more liquid, he said.

Euro-National closed steady at 466 c, after trading between 459 and 486. Judge firmed 5c to 759. West Coasters have not lost their interest in the sharemarket in spite of the bearish trend so far. this year, according to Mr C. E.

Heaphy, of Greymouth, a country member of the Stock Exchange. Interest in the market had not been as high as late last year when buyers had been seeking issues such as Robt Jones Investments, but Coasters were still buying. There was also a lot of interest in debentures and Australian shares, he said. Other investment Issues followed the Brierley lead, and an Auckland * market operator indicated that the quotes from that city: were higher than the ‘ closing prices. Capital Markets gained 7c to 519, 28c below its high, Chase up 20c to 570, 2c below its high, arid Equiticorp firmed 2c t0'385. Corporate Investments,. Charter Corporation, and Irivestment Finance fell.

Buying Interest stayed with Fletcher Challenge, the issue gaining 12c to 512. NZI Corporation firmed 5c and Goodman Fielders 10c, ahead ol its profit report. Carter Holt, NZ Forest Products, and Magnum Corporation were easier.

Among second-line Issues, Mainstay Properties rose 2c to 110 in spite of reporting a net trading loss. Transpac, formerly Transport (North Canterbury) gained 15c, but Trans-Ashburton, formerly the Ashburton transport group, lost 15c to 250. Ashby Bergh, soon to be renamed John Edmond, fell 40c to 100.

New listings continued to make it on the boards. Pacific Metropolitan, the investment group, was the most active, almost 600,000 50c shares being traded. However, the stags made a slight loss as the issue carried a 10c premium and the shares sold between 50 and 59c, closing at 58. Markham Developments, the property company sold between 150 and 175, closing at 160 c.