Fifth decline in as many trading days

Press, 11 August 1988, Page 28

Fifth decline in as many trading days

The New Zealand sharemarket slid lower yesterday, extending its recent bearish trend with the fifth decline in as many trading days. Trading opened on a weak note but prices recovered a little in the afternoon.

The Barclays index of industrial shares lost 8.8 points to 2041.05, while the NZSE gross index closed 3.32 points lower at 738.06. Falls outnumbered rises about four to three, as 8.9 million shares changed hands for $15.1 million — an average of 171 c a share. But the New Zealand market took the weakness of overseas exchanges in its stride, and largely ignored the 28 point tumble in the Dow Jones index and the heavier fall on the Tokyo exchange on Tuesday. It also showed

no reaction to the United States Federal Reserve’s raising of its discount rate half a percentage point.

In fact, the local market first did not react at all.

Mr Ken Stevens, of Guthrie Equities, said that there was little action on the exchange yesterday, and no evidence of any direction, with the market drifting on low volume. Prices were down in the morning but recovered slightly in the afternoon. Brierley Investments finished 1c lower at 159, while Fletcher Challenge held steady at 493 and Goodman Fielder Wattie did the same at 303. Carter Holt Harvey was treated less kindly, closing 6c down at 152; Chase Corp lost 5c to 115 and Equiticorp Holdings 3c to 79.

Elders Resources-NZFP

continued to benefit from Australian buying, finishing steady at 392, after a 150,000 unit trade offmarket at 398. Most price changes were again small, only three extending into double digits. Canterbury Roller Flour, in one of its rare trades, put on 50c to 400, Comalco rose 10c to 510, and Pacer Kerridge lost a further 10c in addition to the 120 c drop in the last ten days. Newspapers were mixed: INL gained 4c to 416 but Wilson and Horton slipped 1c to 614. NZI Corp shed 3c to 137, lEP lost 4c to 246, while falls of 1c each were posted by Robert Jones Investments at 109, Waitaki at 47, and Fisher and Paykel at 337. ANZ Banking group rights traded yesterday at 100 c, well below their theoretical value.