SHAREMARKET Price slide continues

Press, 1 December 1987, Page 49

SHAREMARKET Price slide continues

The New Zealand sharemarket lost further ground yesterday. The total number of shares traded was quite high, but the total value was quite low. Half yesterday’s turnover consisted of New Zealand Steel Shares, of which 19 million sold for $4.2 million. Altogether 21.2 million shares changed hands for $12.8 million — the very low average of 80c a share.

Heavy sales of such shares as Prodigal, Judge Corp, Brierley rights, NZ Salmon, Perry Dines, and South Pet options kept over-ail value down. There were seven falls for every three rises. Barclays* index of 40 Industrial shares dropped 45.61 points to 2168.39, while the NZSE capital Index fell 16.36 points to 779.13.

As corporate activity dried up and failed to stimulate the market, the Brierley cash issue assumed greater proportion, and the market is likely to remain depressed until this is out of the way. However, market observers note a lingering of bearish sentiment, especially in the investment company sector, and some say it may take until well into the New Zealand until buyers return to this market

“A lethargic day’s trading, with prices of leading stocks weakening across the board,” said Mr Patrick Lee, of the Christchurch sharebroking firm Chamberlain Anderson and Sturge.

“Buyers remain hesitant about the short-term outlook for our market,” he said. “The circulation of the

entitlements for the Brierley cash issue is having a dampening effect on the market in general, and until completed no major upward move is expected.

Brierley and Chase dropped 15c each, to 225 and 119. Equitcorp and Goodman Fielder both fell 13c to 163 and 368. Falls of 16c were posted by L. D. Nathan at 586, Magnum (436), lEP (155), Tozer KM (166), Wilson and Horton (465), Abcal (196), ICI (176), and Eurenational, to 96c. Five cent falls were also numerous. They included Fisher and Paykel at 445, BNZ Finance at 126, Carter Holt (266), Ceramco (326), Mainzeal (86), Transpac (75), Fernz Corp (245) and Robert Jones Investments at 155.

NZI Corporation lost 6c to 264, and NZ Equities, which had its annual

meeting yesterday, 7c to 125. Progressive Enterprises fell a further 26c to 369 now that Coles Myer has withdrawn from the market

Companies associated with Mr Bruce Judge continued their slide: Judge Corp itself 3c down to 9c, Kupe also 3c to 75c, while Renouf Corp lost 2c to 62.

Only a few went against the trend. Fletchers edged up 2c to 438, Ailflex recovered 25c to 129, Lion and Newmans put on 19c each to 579 and 152, and New Zealand Refining 23c higher at 135. Share index futures opened at their high for the day of 2165, but slipped steadily to their closing low of 2953 — more than 199 points below the physical— with more than 499 contracts traded.