SHAREMARKET Rally’s momentum maintained

Press, 21 May 1987, Page 25

SHAREMARKET Rally’s momentum maintained

Tbe sharemarket staged a strong rally yesterday, continuing the movement of Tuesday when the market began to recover from the sharp sell-out on Monday. Towards the close share prices appeared to be pegged back. Barclays index of 40 industrial shares rose 64.39 points to 2945.93. This index has now regained almost half of the 276 points it has lost in six trading days up to Tuesday. However, the rise in this index seemed exaggerated compared with the rise in the N.Z.S.E. capital index, which gained 11.31 points to 1048.75. The reason for the discrepancy is probably the weight given to entrepreneurial stocks in the Barclays index.

Almost 17.8 million shares were crossed; at a total value of $91.0 million it represented 513 c a share. Both volume and average share price were boosted by sales of 6.4 million Press shares at $lO.OO, and 3.4 million NZ Forest Products shares at $3.55 each. If allowance is made for the trading in these

two issues, only 8 million shares are left at an average of 191 c.

Rises outnumbered falls five to three. June Share Price index futures closed at a 25 point discount to the physical index, but had a volatile day — opening at 2950 and trading in the range 2895 to 2975 before closing at 2920. One of the major news releases to the stock exchange was made by Hendry Hay Mclntosh, Auckland sharebroker, who announced that the Australian Bell Group had now taken their stake in Wilson and Horton to more than 10 per cent.

Brierley Investments bounced back 14c to 345, while its New Zealandlisted overseas offshoots, I.E.P. recovered 20c to 410, as Tozer KM reversed its recent strong upward trend by falling 10c to 410.

Fletchers recovered 18c to 558, and other large gains were chalked up by Euronational, 29c to 289, B.N.Z. Finance 25c to 175, L.D. Nathan 27c to 635, Leyland 30c to 170, R. and W. Hellaby 25c to 200, Mayfair 20c to 360,

Bendon 20c to 420, and Auckland Gas also 20c to 380.

Feltex and Fisher and Paykel rose 5c each to 315 and 505, and I.N.L. also put on sc, to 515. Rises of 2c were posted by Carter Holt at 462, Waitaki at 212 and Bank of New Zealand at 158. Kupe recovered 8c to 186, and Equiticorp 7c to 305. Blue-chip industrials with 3c rises were N.Z. Forest Products, to 355, Lion to 645, Paynter to 328, and Progressive Enterprises to 398. Wellesley Resources and Judge Corporation put on 5c each, to 210 and 575; Capital Markets was 7c dearer at 372 and Omnicorp 9c to 127. Wilson Neill made 10c to 160.

Gold shares were marked back in spite of a strong gold price: N.Z. Gold lost 40c to 450, and kiwi gold 20c to 200. Among other doubledigit falls were Trans Ashburton, down 25c to 225, Richmond 20c to 250, O.H.L. 35c to 170, Bridgcorp 40c to 100, Crowe 40c to 40, and Betacorp 20c to 360.

Watties slid a further 3c to 592.