SHAREMARKET Fear of cash issues

Press, 25 September 1987, Page 12

SHAREMARKET Fear of cash issues

Falls outnumbered rises three to two in active trading yesterday as the downward trend continued. The indices were down for the fourth day in a row — Barclays industrials lost 28.73 points to 3828.85 and the NXS.E. Capital index 8.83 points to 1317.75. The Barclays index has given up 148.84 points (3.75%) so far this week. Almost 18.7 million shares worth $21.9 million were traded for the low average of 117 c a share. There was little interest in the market as domestic buyers are worried about the foreshadowed. large cash issues, and overseas buyers wait for a trend reversal.

Industrial Equity announced a 1:10 cash issue at sAust4.oo to be followed by a 1:5 bonus issue, but Goodman Fielder contented itself with the. announcement

of a bonus issue only. The shares lost 4c yesterday ahead of the excellent result, to be added to the loss of 18c in the previous two days. Today the market might firm a little on Friday book squaring. “The weak trend from Wednesday accelerated yesterday as sellers swamped buyers in early trading,” said Mr John Hutchinson, of the Christchurch sharebroking firm Anderson Reid and Company. “There was little support for market leaders, but most second-line stocks remained unchanged.”

“In the afternoon session prices stabilised but still looked a bit fragile at the close,” Mr Hutchinson said.

Most price changes were small, with the exception of a few leaders. Brierley Investments slipped 6c to 504, and its Hong Kong-based subsidi-

ary Industrial Equity Pacific fell 20c to 590. Other leaders to fall were Fletcher Challenge down 15c to 710, Wattie Industries down 10c to 655, Fisher and Paykel 10c to 520, and Robt Jones 5c to 298. Rises of 5c were posted by Equiticorp at 360, Chase Corp to 485, Judge Corp to 445, and BNZ Finance to 240. Bank of New Zealand

put on 1c to 198, but Carter Holt shed 2c to 454, Ceramco was 4c lower at 618, Feltex was 3c down to 422, LD Nathan lost 8c to ■ 732, Lion 1c to 725, LWR was 3c cheaper at 175, Mainstay 2c to 68, and NZ Steel gave up 1c to 42. December share price futures traded in a range between 4080 and 4025 finishing at 4069.