SHAREMARKET Share prices retreat in quiet trading

Press, 28 July 1987, Page 28

SHAREMARKET Share prices retreat in quiet trading

The New Zealand sharemarket was easier yesterday and retreated a little after last week’s sharp rise. The Barclays index of 40 industrial shares dropped 10.75 points to 3389.41 — back from Friday’s psychological 3400 barrier.

The NZSE capital index lost 3.07 points to 1160.08. Falls outnumbered rises about six to five, in moderately active trading. Turnover was 8.5 million shares worth $17.1 million — an average of 201 c a share.

Goodman Fielder fell 5c to 560, while its prospective merger partner, Watties, lost 15c to 555; both rose sharply on Friday in response to Goodman’s proposed sale of a 20 per cent holding in Elders IXL. “A slow start to the week, with only small parcels changing hands,” said Mr Simon Flood, of the

Christchurch sharebroking firm Egden Wignall and Company. “An exception was the sale of 1.3 million Goodman Fielder shares in Australia.

“On the negative side for the New Zealand market was the rise in the interest rate for the benchmark 5-year Government Stock. “Volume was low, and many investors appear to be pulling out to sit on the sideline until after the election,” Mr Flood said.

The market will probably be off this week, volatile in the face of Thursday’s Heylen/“Eye Witness” poll on Thursday, another broker told NZ Press Association.

“Polls suggesting a closer tie between National and Labour were causing pre-election jitters.” He suggested that National’s campaign so

far was having some effect on the market.

“If private clients have any brains they will sell into any strength or at least take the top off their investments, because 3400 is a pretty sexy level,” another broker said. “Institutions stayed out of the market yesterday." Brierley Investments slipped 3c to 435, and its Hong Kong offshoot lost 5c to 565. Other leaders to fall were Chase Corp 15c to 400, Carter Holt Harvey 4c to 432, and Equiticorp 5c to 400.

Lion Corp was down 5c to 690, and Rainbow Properties 5c to 95. Judge Corp shed 12c to 440, Skeilerup 9c to 121, and Smiths City Market gave up 5c to 145. Against the trend, Fletchers put on 8c to 614, while Wilson and Horton and Mainstay rose 5c each to 870 and 75c.