SHAREMARKET Indices touch new lows for year

Press, 15 May 1987, Page 11

SHAREMARKET Indices touch new lows for year

The sharemarket slide continued yesterday in slightly more active trading, with indices falling to new lows for the year. ' Volume was about 30 per cent higher than normal, as 9.8 shares changed hands for $14.7 million — an average of 151 c a share. Falls outnumbered rises four to three, and the N.Z.S.E. capital index fell 6.01 points to 1089.20, its lowest level this year and the lowest since August 8.

“The trend was down again, with Barclays index 20.18 points down to finish at a low for the

year of 3025.82, said Mr Ken Stevens, of Harkness and Company, Christchurch sharebroker.

“Heavy weights lost ground again in the absence of buying support but on low volume. Without continuing support in evidence in this market, the worst is probably yet to come,” said Mr Stevens.

Most brokers expect a quiet, boring, and thin time — “unless Auckland panics.” “All those sellers left over from the first quarter finally triumphed over reasonable fundamentals,” another broker told NX Press Associa-

tion. “Where to now? It’s back to very conservative fundamentals, price earnings ratios based on recurring cash earnings, price close to net tangible asset backing, and no premiums for flashy management Watch out Chase, Judge, Wellesley to name a few.”

National Pacific accounted for 2.6 million shares traded yesterday, 1c down to 102 but Brierely Investments was the leader by value, with the shares steady at 366. Kupe Group was also active, as 591,000 shares changed hands for $1.2 million — up 5c to 200. Leading industrials

among the falls were Carter Holt, 6c down to 466, Feltex 5c ts 326, Lion 2c to 656, PDL Ic to IBS, Smiths City Market 3c to 146.

Goodman Feiider, in a further reaction to the upset of its merger plans, fell 16c to 546, while Wattles fell another 5c to 555.

Falls among the oncepopular entrepreneurial stocks Rainbow loot 16c to 248, while Capital Markets shed 8c to 426. Down 3c were NX Equities to 262, and Hameiyn to 62c, and 2c lower were Equlticorp at 346, Chase at 388, and Omnicorp at 133.