SHAREMARKET Profit talking emerges

Press, 11 March 1988, Page 12

SHAREMARKET Profit talking emerges

Profit taking took the edge off the eighth day of rising share prices yesterday. The Brierley Investments assets sales to Fletcher Challenge kicked the market up another 39 points on the Barclays index. But selling pressure in the afternoon lowered prices. After morning leading, the Stock Exchange’s gross index and capital index were up 18.34 points and 17.33 points respectively. They finished the day 15.53 points and 14.67 points up. The Barclays index closed at 1909.09 points. It has risen almost 263 points, virtually 16 per cent, since the beginning of March. Another bearish signal yesterday came from the Barclays mining index. It fell 1.65 points to 162.95. Rises outnumbered falls slightly more than two to one on turnover of 14.43 M

shares, wot th $16.7 million. This was down on Wednesday's Irading. but still above gt neral postcrash levels. Mr Ken Sjtevens, the market operator for Marshall Equities, said the market held lup remarkably well, with big gains in blue chips across the board. But there was evidence of sellers emerging towards the close of trading. ' [ Brierley's, I Fletcher's, and Robt Jones were all well bid. partly because of rising prices! in Australia and lack of [major selling pressure in New Zealand, especially, with the Brierley interim; profit announcement [ on Monday, Mr Stevens said. Share-index futures sounded a warning on the market's direction. March contracts closed at 1921. down seven [points, cutting the premium on the physical to 12 points.

Trading closed near the low for the day. Brierley’s rose 6c to 140 on a turnover of more than 2M shares on news of ils asset [ sale. It has now risen 25 per cent since March! 1. Fletcher! Challenge was up 8c at 4681. It has risen 20 per cent [the last eight trading days'. Robt Jones Investments, which rose 8c to 115, has jumped 47 per cent since Tuesday of last week. Pacer [ Kerridge bettered its 25c lift of Wednesdayi with a 30c rise to 780. It has risen 70c since March 1. Ra Ora Stud, which reported a substantial annual loss last month, fell 5c to 95. It is up 33 per cent this month after a low of (50c shortly before its loss announcement. [ Goodman Fielder Wattle took a 5c correction to 265 after rising steadily

from 220 on February 29. Baycorp options jumped 20c to 320. These were issued to buy shares at the then, par of 100 c each. The par value was split to 25c in November. Baycorp glares traded at 102 c yesterday. This seems to indicate that the options buyers are paying 320 c for the right to buy four shares! at a total of 100 c — that is to save 308 c. Firestone fell 25c, perhaps on [the report of a retread plant closing in the south.: This issue is now at its low since the sharemarket crash, [after an against-the-tide rise in January. Main Corporation; rose 15c to 110. It has I risen from 82c at the beginning of the month. Transmark, the former Moyes and Groves, a light engineering firm, fell 15c against the trend to 265. SALES, PAGE 14