SHAREMARKET
The sharemarket, as predicted, was again easier yesterday as the corrective redistribution process continued. Trading was particularly weak in the morning session, while the easier trend seemed to show in the afternoon. Falls outnumbered rises two to one in the morning, but only nine to eight over the whole day. Some 84 per cent of the index losses occurred in the morning. The Barclays index of 40 industrial shares dropped 39.00 points to 3907.52, and the NZSE capital index was 11.75 points down at 1345.62. Turnover was lower, with 13.2 million shares exchanged for $26.1 million — an average of 198 c a share.
“At first sight investors may be forgiven for believing that the sharemarket looked rather fragile at the close of yesterday’s trading, with the Barclays index having lost some 70 points in the past three days, said Mr David Templeton, of Jordan Sandman Smythe, Ltd, Auckland and Christchurch sharebroker.
“Investors should, however, be aware of the make-up of this index,
particularly as a measure of market activity,” he said. “Because it is based on the top 48 stocks, the Barclays index is heavily influenced by the leaders and does not truly reflect general market activity. “The fall in the last few days, as well as the rise in recent weeks, reflects more the movement of these leading stocks rather than general market direction,” Mr Templeton said. Among easier leaders Fletchers lost 13c to 733, Brierleys 6c to 519, and Goodman Fielder 4c to 608. Watties eased 2c to 670 and Waitaki 3c to 255. Tozer KM shed 15c to 325, and lEP lost 25c to 620.
Carter Holt Harvey gave up 7c to 458, but our other forestry giant, NZ Forest Products, recovered 3c to 485.
September share price futures continued to be traded opening at 3960 but down to 3895 at the close giving some indication of the Barclays Index in five days time when the September contract expires.
The December contract, which will attract more interest when the September contract closes, also came off 65 points.
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Press, 23 September 1987, Page 45
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341SHAREMARKET Press, 23 September 1987, Page 45
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