Market down again in heavy trading

Press, 9 October 1987, Page 14

Market down again in heavy trading

Individual iaveaton, perhaps panicked by. the steepaesa ef Wedaesday’b faU la the sharemarket, kept ap aeUlac pit mare yesterday to eoatiaae the dowa tread of the last few days. Trading was very heavy, but sellers had to drop their prices by substantial amounts before buyers would nibble. However, at the lower levels a few selected stocks found support from institutions. Some sharebrokers viewed this as a sign that the market might turn around soon, but most sharemarket analysts refused to commit themselves on what direction the market would take. They are looking to the September quarter inflation figure, due out next Tuesday, to provide this direction. Rising interest rates are worrying New Zealand investors, and the consequent strength of the New Zealand dollar is making offshore investors cautious, if they are not tempted to take profits. One sharebroker told

New Zealand Preaa A—clama: “WeVe aa a The Barclays index ut 41 tadMtrial shares feH S7J4 pelats, sr mare than ene per cent* tn NtZM, after losing 7MS an Wednesday. The NZSE ’ capital index fell 14J9 ■’ points, a hjg£ perceatage, tn d As this Index was more than IS points down by luneh-time, the market? clearly bounced buck a little in afternoon trading. The December index futures contract fer December rose 2* points to M 44, after trading as high as 3MC and as low as 3772 ~ stffl bullish ; against the physical market, with a premium of almost IM points. One broker who is quite bullish is Mr Roger Howell, of the Christ- \ church office of Jordan Sandman Smythe, Ltd, who said: “Despite media suggestioas that prices on the New Zealand Stock Exchange, were about to fall dramatically, there was no large

xuin ® exchuuge yeutcrday. huyen* esabfiaf mum taEditor iaveutun CMCtru, the eutlMk Mr the marhet Mr HeweM esuMuwedr iucMed: *' Z' • The snusuurrmret that Fermi directors will reriat the takeever offer Pacific • The - acqufaMea by local company WaltaH Irteraatioaal Liadtod of a high technology Hochemical, company from Canadian Packer*, Ltd, a Canadian company. • The disclosure by Rothschild Australia that 15 per cent to 24 per cent of the funds of their new unit trust the Five Arrows Companies Trust wiH be invested in New Zealand companies. Rises outnumbered fulls three to oue, as

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