Share prices take a sharp tumble

Press, 8 October 1987, Page 25

Share prices take a sharp tumble

ADRIAN BROKKING

New Zealand share prices tumbled yesterday, as falls outnumbered rises more than three 'to'one and indices fell some two per cent, after Wall Street’s biggest one-day fall ever, and the New Zealand dollar’s highest post-float rate of 66.3 c. Sellers dominated the market, .and 18.4 million shares worth $30.1 million were traded for an average of 164 c. The impact of the soaring New Zealand dollar is enough to make anyone nervous, as it undoubtedly would prompt overseas investors to sell and take profits.

The announcement of a

tighter monetary policy stance came after the close of trading is likely, to lead to higher interest rates, and is not goingto help . a. sharemarket that is already being Sold down. . “ “On ttie back of weak share markets In - both New York and Australia share prices were sold down during the morning and afternoon sessions,” said Mr Kerry Porter, of Forsyth Barr, Ltd, South Island sharebroker. ' "The local market has now fallen some 6.5 per cent since September 18. However, this fall must be viewed in perspective. In a 5-months period from

May 18 the Barclays index rose 40 per cent A rise of that magnitude cannot be sustained without a. correction of tea-, sonable degree.'<• “When reviewing theirportfolios, investors should .be" Objective whether buying or selling, as corrections are both inevitable and healthy. Should any ’ t additional . weakness prevail in our market, leaders would become very attractive,” Mr Porter said. < ' • Fletcher Challenge and Brierley Investments lost 9c each, to 686 and 485; Brierley’s offshoots were in empathy, with lEP down 23c to 570, and

20c to 600, WaStefsiSo 690, NZ Forest/ Products was 15c lower at 475, and another > .“international,” NZI 6C to 295. JP . Needless to say, all Ox- \ were hard hit. To ' ■those, already mentioned may be added Allflex, 8c down .to 147, and Mair, 3c to 277. 1 Other large falls to important leaders were Renouf Corporation, 35c to 230, Robert Jones lpvestments, He to 286, Malnzeal, 22c to 120, INL 20c to 505, Chase, 14c to

458, Capital Mtaiteta,; 26c to 345/ JaroM,9e to 270, and EquittcotiK «c to NO. .. Baycorp, jON Entest Adams, 340, ' '*■ '-ftny ~ HYsttiport (190), Pacer Pacific (13X), Unigroup (450) aM VMMOley, at 260, all tost ife. The < tew .- riMfte J&y - smalL www'''oY;*lMMDdHne stoctat la ttdif cntegory, Übix up 200 <l7O, Wormaid, .10c huh* to "300, Southcorp also lQc to 160, and Questar, 'again 10c to 140, all cauMt the eye.