SHAREMARKET Investors’ hopes of rally dashed

Press, 26 June 1987, Page 11

SHAREMARKET Investors’ hopes of rally dashed

The sharemarket eased yesterday, dashing investors’ hopes that the spurt of Wednesday afternoon was a turn in the market

The Barclays industrial index was down 5.59 pointe at 3069.46. This compares with 3112.27 a week earlier. The Stock Exchange gross index was down 2.72 pointe at 1112.49 and the exchange capital index was down 2.65 pointe at 1081.05.

The broader-based Reserve Bank index, which is calculated on morning trading, was up 59 pointe on . the day though it was down 139 pointe on a week ago. It was 14.3 per cent higher yesterday than on June 25 last year. Falls in prices. outnumbered rises about 4:3.

Mr Patrick Lee, a market operator for Chamberlain Sturge and Company, a Christchurch sharebroker said that it had been a lacklustre day’s trading with little enthusiasm shown in the market.

Prices were slightly easier from Wednesday’s levels. Turnover was boosted by special sales in Fisher and Paykel and Kupe Group.

One stock to stand out was L. D. Nathan, which went against the trend. It finished above the price

that Fay Richwhite Equities had been paying for the issue earlier this month. “For the close of the week’s trading I would not expect the market to vary greatly from current levels,” he said. Northern brokers said L. D. Nathan, which rose 29c to 745, was now scriptight after Fay Richwhite bought 10 per cent of the company earlier this month. People who now want the stock have to pay 10c above the last price to get it, one broker said.

Wattie added 35c to 520, after going ex its one-for-three bonus issue on Wednesday. Equiticorp put on 3c to 338 and Fisher and Paykel 5c to 565 after the announcement that the “virtual partnership” moves had been completed. Brierley’s was down 6c at 390. This is still well up on its price at the beginning of the month — 361. Among other issues to fall, Cory-Wright Salmon was down 15c at 380, a low for the year. Comalco dropped 50c after rising 20c on Wednesday, and traded at 310.

Commercial Securities was down 15c at 215, and Hobson dropped 10c to 55, its price of a week

earlier. Kiwi Gold, NL, the miner, was down 15c at 250, its lowest for about five weeks, in spite of a marginal rise in the world gold price. Venture Pacific, which was floated in 1985 as the New Zealand Venture Capital Corporation, dropped 18c to 70, ‘ XS Corporation (formerly Manawatu Radio) was down 10c at 150.

The Christchurch clothing manufacturer, Lane, Walker, Rudkin Industries, was down 25c to 115, a low for the year. Progressive Enterprises was down 20c at 335. The mining company Restech International, Ltd, was down 15c to 60.

Otago Press and Produce, another miner, fell 10c to 700, which is 50c down on its price at the beginning of the month.

Strada Holdings fell for the second successive day, this time by Bc, but is still well up on its price at the beginning of the month, 68c.

Robt Jones Investments eased 2c — 202, but Fletcher Challenge was unchanged at 540.

Issues to rise included Mutual Pacific (20c), Mount Cook (10c), whicp report on Wednesday that results were well up, and Pacer Pacific (10c).