SHAREMARKET Offshore interest buoys leaders

Press, 12 July 1988, Page 27

SHAREMARKET Offshore interest buoys leaders

The New Zealand sharemarket yesterday rose for the fifth consecutive day, mainly on the back of overseas buying for our leading stocks. The Barclays index of industrial shares jumped a further 20.71 points to 2017.22 — well past the voodoo 2000 mark.

The NZSE gross index closed 6.92 points higher at 720.02, while rises outnumbered falls 11 to six.

Trading volume was 11.1 million shares. Brierley Investments accounted for 4.8 million of this, boosted by big offmarket sales. The share gained 3c on the day to close at 154. Fletcher Challenge had the next highest volume, with 1.4 million shares crossed in a range of 475 to 496. The share closed the day 9c higher at 488. The average for the whole of the market was 155 c a share. Sharebrokers said that these sales reflected largely offshore interest,

and not all from Australia either. “Perhaps some of it was out of America ... it was that aggressive.”

Mr Patrick Lee, of United Sharebrokers, said that the quiet trading of recent days continued yesterday, but that the lift of Barclays index above the 2000 level provided welcome news to offset the announcement of yet another receivership — Goldcorp.

“Interest at present only centres on our market leaders, especially as the continued strength of the Australian market fuels demand for our international stocks,” Mr Lee said.

Among the other leaders, Goodman Fielder Wattie put on 2c to 320, Carter Holt Harvey 3c to 153, Robt Jones Investments 3c to 107, and Lion Nathan 5c to 240. Chase Corp continued to consolidate above 100 c, with a 1c rise to 107.

Market reaction to the Independent Newspapers acquisition of NZ News’ Auckland interests, announced late on Friday, was not favourable. The stock dropped 7c to 405, although turnover was just 1000 shares.

Reid Farmers was also marked down, 10c to 120, after news that Waitaki International sold its 25 per cent stake in the company to Pyne Gould Corp for an undisclosed sum.

Goldcorp, which announced that it was in receivership, shed 5c to sc.

Brokers said they expected the market would continue to lack direction until future economic policy and other market trends became clearer after the July 28 Budget. “I think the market will want to take a breather,” one broker said after the Barclays rose again. September share price futures gained 32 points for the day, with a last trade at 2062.