SHAREMARKET Correction occurs in quiet trading

Press, 12 June 1987, Page 23

SHAREMARKET Correction occurs in quiet trading

The long-awaited sharemarket correction occurred yesterday, in quiet trading with low volume. Fails only marginally outnumbered rises as 7.4 million shares changed hands worth $11.7 million — an average of 159 c a share. Movements were again

small, but declines among the market leaders pushed the Barclays index of 40 industrial shares down 16.57 points to 3065.10, while the NXS.E. capital index gave up 4.36 points to 1082.21. “Yesterday’s downturn was characterised by a lack of institutional buy-

ing support, with low volumes being traded,” said Mr Tim King, of the Auckland and Christchurch sharebroking firm Jordan Sandman Smythe, Ltd.

“The market downturn represented a reversal of a 16-day market rally which was largely stimulated by isolated overseas investment

“It would appear likely that the market will continue to weaken this week. This view is reflected by the Barclays Share Price Index June contract which closed at 3055, 10.1 points below the physical market” Mr King said. Fay Richwhite continued to buy L. D. Nathan at 718 c after advising the Stock Exchange they had bought 8.5 per cent of the diluted capital bringing their holding to just over 20 per cent enabling them to equity-account

their stake. Leaders to fall included Brierley Investments down 2c to 302, Capital Markets down 7c to 375, Chase Corp 2c to 367, Equiticorp lie to 337, Fletcher Challenge 6c to 553, and Judge Corp 8c to 568.

Against the trend Fisher and Paykel rose 3c to 528, lEP up 2c to 467, NZI up 4c to 262, and Smiths City Market 16c to 145.

Others to catch the eye among the falls were Waitaki, down 12c to 216, Lion, Sc lower at 665, Kupe 4c off .at 186, while 3c falls were recorded by Watties at 575, Wilson Neill at 157, Charter at 72, Rainbow at 227, Donaghys at 127, and Robert Jones Investments at 177. The seaford farming sector was weaken NZ Salmon lost 30c to 136, and Big Glory dropped 5c to 166.