SHAREMARKET Easier trend fails to grip

Press, 9 March 1988, Page 38

SHAREMARKET Easier trend fails to grip

The rally on the New Zealand sharemarket appeared to slow yesterday, although the expected correction failed to grip. The Barclays industrial index rose a further 4.81 points to 1817.45, putting its gains for six sessions at 192.12. The Stock Exchange’s capital index was 0.24 points behind in the morning session, but recovered to end 2.90 points up at 624.81.

Predictions that the expected correction will occur today might go awry if the Fletcher Challenge result is a healthy one. Some brokers are picking the Fletcher profit and pro forma balance sheet will be better than expected. If this is the case, it might be the tonic required to push prices higher.

Rises outnumbered falls 68 to 40 as turnover was an active 13.5 M shares. Mr Shane Edmond, the marker operator for Hamilton, Hindin, Greene, of Christchurch, said brokers were looking for a correctidn after five days of gains, but were surprised that the selling did not cause too much concern. | There was still considerable interest in the leading issue, such as Fletcher Challenge and Goodman Fielder Wattie (GFW), especially from Australia. ■ Market sentiment appeared to be Improving with every day of the rally, as turnover of more than 13. million shares was well ahead of the volume of just a few weeks ago, he said. Fletcher Challenge rose 2c to 435 ahead of today’s interim result, its high for the day after selling as low as 429. GFW, another keenly sought issue, gained a further 7c to 262 slightly off its peak of 265. Feltex was off 5c to 254 in spite of reporting an improved result. Equiticorp, which owns 60 per cent of Feltex, came under renewed selling pressure, losing 6c to 94 on a total turnover of 4.2 M shares. It was sold down to 84c on March 1. Aurora, an associate of Equiticorp, was unchanged on 180 c and Fisher and Paykel, also an

associate, firmed sc. Lion Corporation rose 16c and L. D. Nathan 29c as Lion shareholders approved a merger with Nathan’s. However, the turnover in both issues was minimal. Magnum, a competitor with the merged group if final approvals are i given, gained 10c to 405, its top price for the session.

Among the investment issues, Brierley firmed Sc, Chase sc, and Capital Markets sc. The Bank of New Zealand was unchanged at 115, having sold as low as 95 in the last week of Febru- ■ Cr itr vidr 9c.

ary. countrywide rose . Among other Industrials, Ceramco Jumped 22c to 228, having been sold down to 198 at the beginning of the month, and Newmans, another issue also under pressure, recovered 10c to 100. NZI Corporation firmed sc, but N.Z. Forest Products eased Ic. Waitakl International rose a further 10c to 95 having been pulled down after reporting a loss of staff cuts. Hotelcorp was again in the “most actives,” a further 2.2 M shares sold at a steady 15. Among the media issues, N.Z. News (fell 5c on its smaller profit, Independent Newspapers was steady at 375 on a busy volume, and Wilson and Horton gained 15 to 510. i

Among second-liners, Compass Duty Free was sold down to 15c before recovering to a steady 20, having lost 20c on Monday. The issue has been under the spotlight because of the resignation last week of its managing director, Mr C. R. Hill. Capital Investment Trust, which has issued a “don’t sell,” firmed 3c. Carr Business, the seldom-traded Auckland-based accounting firm, rose 60c to ISO on the second board.

On the mining and oil boards. Petrocorp improved 1c to 163, Oil Fields lost 2c, and Southern Petroleum was steady on 18c. New Zealand Goldfields eased 5c and Mineral Resources gained 4c. The Barclays mining index was marginally ahead 0.14 points to 165.48. | | Share sales. Page 40.