SHAREMARKET Some ground recovered

Press, 27 July 1988, Page 37

SHAREMARKET Some ground recovered

The New Zealand sharemarket recovered some ground yesterday but trading was dull and volume low ahead of the Government’s Budget on Thursday night. Although investors are not expecting any major surprises — most market observers regard the Minister of Finance, Mr Douglas, as reliable and predictable — they prefer to take a wait-and-see attitude. The Barclays index rose 7.65 points to 2030.53 and the broader-based NZSE gross index was 2.78 points up at 730.09. There were twice as many rises as falls, but the turnover was a low 6.5 million shares worth an even lower $6.0 million —

an average of 92c a share. Trading was fairly evenly spread, without any exceptionally large parcels. Mr Roger Howell, of the Christchurch office of Jordan Sandman Smythe, Ltd, said that trading on the New Zealand Stock Exchange yesterday was uninspiring, which continued the pattern established since the start of the week. “While the leaders remain well bid, the market has gone into a state of limbo awaiting Thursday night’s Budget announcement. Investors are preferring the lower risk strategy of standing on the sidelines until some of the current uncertainties surrounding taxation and

superannuation are addressed in the Budget. This was similarly reflected in the foreign exchange and money markets where activity was veiy quiet and no clear direction was apparent. “Market commentators seem cautiously optimistic about the likely content of the Budget, and view the pending announcements as being very important to the future of Rogernomics and New Zealand’s economic recovery prospects,” Mr Howell said. NZI Corp topped the turnover with 733,800 shares trading worth $l.l million after its shareholders approved the purchase of majority control

of the insurance giant by General Accident of Scotland. NZl’s share price rose 2c to 150. Other leading shares to rise included Carter Holt Harvey up 3c to 150, Elders NZFP up 7c to 340, Fletcher Challenge 2c to 488, lEP 3c to 258, Lion Nathan 2c to 247, and Robt Jones Investments 2c to 113. Against the trend, Bank of NZ fell 1c to 164, Brierley Investments also 1c to 157, Ceramco 2c to 193, and Wilson and Horton 5c to 610. September share price index futures closed on their highs at 2115 after trading down to 2070 but only 26 contracts crossed.