Market ends at high

Press, 17 June 1988, Page 19

Market ends at high

The New Zealand sharemarket yesterday broke its previous high for the year in spite of afternoon profittaking creaming off some gains. The Barclays industrial index rose 10.77 points to 2035.30, bettering the previous best high of 2032.34 set on April 14. However, the market was stronger in the morning session, the Stock Exchange capital index being ahead 4.40 points at mid-session compared with 3.39 points at the close. Reassuring noises from the Government, discounting any blow-out in the Budget deficit, plus a last-minute rally on Wall Street overnight helped extend the firm trend into the second session. The Australian sharemarket was also stronger, and the Tokyo market closed on a second consecutive record yesterday, analysts predicting that the bull run still had a lot of steam. Turnover was a higher 11.2 M shares, again helped by active trading in Brierley Investments and Chase Cor-

po ration. Rises were ahead of falls, 46 to 36. Mr Peter Talbot, the market operator for United Sharebrokers’ Christchurch office, said Industrial Equity (Pacific) continued to find support, reflecting its international exposure to overseas markets. Brierley Investments and Fletcher Challenge were also well bid. However, both the Australian and New Zealand sharemarkets were waiting for important announcements which would determine their immediate future. These were the current account figures in Australia, and today’s result of Brierley’s tender for its 35 per cent stake in NZI Corporation. Interest rates continued to be firm, call rates going as high as 20 per cent, although benchmark 11/93 Government stock yields eased from 13.17 per cent to 13.13 per cent, he said. Fletcher firmed 3c to 438 on the announcement' that it had received permission to take 50 per cent of Australian Newsprint Mills. Lion Nathan

was another strong performer, gaining 7c to 280, its high of the day. Investors also took a favourable line on NZI Corporation, after it reported S22BM in abnormal losses from the October crash on Tuesday, the issue gaining 2c to 95 ahead of Brierley’s tender result today.

Wilson Neill was marked back 2c after reporting lower earnings, but New Zealand Refining continued to firm, adding 10c to Wednesday’s 8c gain. A Government guarantee on the future of the Marsden Point oil refinery has lifted some uncertainty about the future of the refining company. Chase was again the subject of heavy buying, a further 1.9 M shares changing hands between 92c and 98c, before closing at its top range for a 3c gain. Brierley’s turnover was 1.5 M, the issue firming Ic, and its Hong Kong offshoot, lEP, jumped 6c to 238 on almost 500,000 units. Donaghys Industries, the Dunedin ropemaker, lost 2c to 115 after a Renouf Corporation subsidiary sold its 38.5 per cent stake in the

company to a Dunedin investor. Harcourt remained unchanged at 35c in spite of reporting a large fall in earnings. Skeggs Corporation gained 4c to 51, its highest points since the directors of the Dunedin-based food group issued a “don’t sell” notice, stating discussions were taking place which could affect the value of the shares. Somex options climbed 3c to 5 as moves were made to organise minority shareholders into seeking more money from Transequity Holdings, which has made a take-over offer for ' the second-board investment group. The shares of Mount Cook Group continued to show some volatility, the issue losing 30c to 150, having jumped 20c on Tuesday. Landmark eased 2c in reaction to its chairman, Mr Ollie Newland, selling his holding to Richmond Smart. Renouf Properties, which is targeted for sale by its parent, Renouf Corporation, gained 10c, and Robt Jones Investments firmed Ic.