SHAREMARKET Stands fail to stem flow

Press, 13 March 1987, Page 11

SHAREMARKET Stands fail to stem flow

Share prices continued to retreat on the New Zealand Stock Exchange yesterday, in spite of increasing take-over activity and recent healthy profit reports from some market leaders.

The NZSE capital index was 5.34 points down at the close at 1163.16, after being 3.52 points behind at the half-way mark. The Barclays industrial index lost 19.30 points to 3200.10. Falls beat rises 94 to 71 on a turnover of 7.3 million, worth 516.9 M. The stand in the market for Steel and Tube shares, plus a similar move for scrip of Progressive Enterprises failed to stem the easier

tone. An Auckland market operator, who would not be named, said that the stand for 3M shares in Progressive at 425 (about 2.9 per cent of its capital) was seen as a move to thwart the merger of the company and Rainbow Properties.

The issue became complicated when a second broker also began buying Progressive shares, but this company later withdrew, the operator said.

Market sales of Progressive was slow. Only 207,945 were recorded at the offer price, although a further 80,000 sold 1c above the bid. The issue finished at 425 for an 18c gain.

The operator said Brierley had been under some pressure, as had Chase Corporation and Capital Markets. However, Fletcher had continued to firm, with a special sale of 500,000 shares being recorded at 582, 4c above the closing price. Trading had continued to be mixed, based on a low volume, he said. Rainbow Properties eased 10c to 160 on a quiet turnover, although Ceramco and Bendon, which have also announced merger plans, were firmer. Steel* and Tube continued to be actively traded, but it finished 5c down at 195. There have been competing bids for the issue this week. The easier trend went across the board. However,

besides Fletcher, up Bc, L. D. Nathan stood out on a 35c gain, and Rada and Newmans were also firmer.

Among second-line issues, Montana Wines firmed 3c after announcing it was back in profit in its latest half-year. Smart Group lost 5c in spite of reporting it was setting up two companies in Australia. Golden Bay Cement was firmer, although the company had announced a decline in earnings earlier in the week.

Damba, a second-board issue, held little Joy for the stags, selling at its issue price of 190 in its debut Kiwi Bear and Rank Group, two issues to be listed earlier in the week, were untraded. However, Energy Corporation, another recent listing, continued to show some volatility, losing 30c to 160.