SHAREMARKET $65M turnover

Press, 14 September 1988, Page 42

SHAREMARKET $65M turnover

Turnover reached $65.5 million on the New Zealand sharemarket yesterday, helped by the sale of 31.9 M Met Life Group shares. The special sale of the Met Life shares, almost all to FAI Insurance, of Australia, accounted for 82 per cent of the total turnover of 38.1 M shares. Excluding the special sale, worth SS9M out of $65.6M, the volume of shares traded was mediocre. The Barclays industrial index firmed 21.14 points to 1969.85, its first gain in four sessions. However, the index may retreat again today, because as a capital index, the Barclays does not take into account the large number of issues about to go ex dividend as companies move to beat the October 1 tax changes, which includes taxing bonus shares. Top issues to go ex dividend today include Carter Holt Harvey, Lane Walker Rudkin, Magnum Corporation (ex bonus as well), and Mair Astley. The September futures contract closed at a four-point discount to the physical, although this contract has only two weeks to run, and the December contract was at a 21-point premium to the physical, down from 32 points on Monday, and not a strong position considering the lengthy period to the close. Mr Simon Flood, market operator for Egden Wignail and Company, a Christchurch sharebroker, said buyers yesterday took advantage of Monday’s oversold issues to come back into the market. The oversold issues had included Goodman Fielder Wattie and Fletcher Challenge. The buying support appeared to be languishing towards the close, giving some indication that there was a lack of direction for today’s trading, he

said. The Met Life Group special sale was at 185 c a share, well ahead of Monday’s closing price of 135. The issue quickly jumped in market trading on the news of the special parcel, moving to 150 and then closing on 170 for a 35c gain. Fletcher recovered from Monday’s drubbing ahead of the release of its annual profit figure today. The issue held its ground at 483 for much of the day for a 7c gain after trading between 482 and 485. Goodman also gained 7c after slipping 14c on Monday to end at 293, its high for the session. Goldcorp Holdings, which is enmeshed in legal battles over bullion ownership after being put in receivership, lost 3c to Ic, and Baillie Motors slipped 30c to 110. The company has proposed a one-for-one bonus issue. Canterbury Roller Flour Mills dived 150 c on a small parcel, having climbed to 700 after announcing a seven-for-two bonus issue. The directors are seeking approval for the issue on Friday. New Zealand Equities lost 16c, but New Zealand Refining was 15c up at 260. Transmark added a further 7c to the 18c gain on Monday to close at 225. Turnover in the issue has been low, Fortuna jumped 7c to 222 on news of expansion into Australia’s marine industry. Commodore Computer eased 5c in spite of reporting an increased profit last Friday, and U-Bix firmed 5c to 200 on its result yesterday. Spectrum Resources was 1c up at 41 on an optimistic annual report, in spite of moving offshore to continue mining. New Zealand Oil and Gas was also 1c firmer. The mining index gained 2.26 points to close at 174.76. Share table sales, page 44