Offshore influence strong

Press, 28 September 1988, Page 42

Offshore influence strong

SHAREMARKET

Prices continued to retreat on the New Zealand sharemarket yesterday, as investors tracked overseas markets. Mr Ken Stevens, market operator for Guthrie Equities, a Christchurch sharebroker, said that buying support came for market leaders near the close after a firmer Australian sharemarket and the higher Nikkei index in Tokyo. Earlier, the lack of buying support had caused the market to weaken again in line with weaker overseas markets overnight, he said. The Barclays industrial index ended 10.12 points down at 1944.92, putting its losses for the last two sessions at 25.73 points. Falls exceeded rises more than two to one, and turnover was a low 7.4 million shares. The Barclays share price futures contract finished at a slightly lower premium of 32 points for December, against 35 points on Monday, but ended off its lows. Australian industrial issues firmed, and the Nikkei index was much stronger in Tokyo, gaining 165.81 points to 27,499.56 on the first day of the new fiscal year for securities houses. Both New York and London markets were marginally weaker. News that Fletcher Challenge

was considering bidding for the Bank of New Zealand failed to stimulate demand. The BNZ held steady at 167, and Fletcher retreated a further 4c to 478, putting its losses for two sessions at Bc. Feltrax, another company that Fletcher has expressed interest in fell 2c to 252, although it had been sold down to 248 in the morning, and Equiticorp, which owns 80 per cent of Feltrax, slipped 5c to 52c. The Como Holdings receivership did not shake up trading, the consensus being that the fall had been expected for some time. Como lost 0.5 c to close at rock bottom at 0.5 c in quiet trading, in contrast to the pre-receivership business of more than IM shares on Monday. Prodigal Gold, a subsidiary of Como, was steady at 0.5 c, and Premier Mining Securities, an associate, was untraded. Renouf Properties, which is 95 per cent owned by Renouf Corporation, jumped 30c to 80. The corporation’s managing director, Mr Andrew Strange, said last evening that he did not know what had caused Renouf Properties price to jump. Renouf Corporation had publicly said it would sell them but it still currently held them. Landmark, another Auckland property group, which has been surrounded by recent controversy,

eased 2c to 15. A fiery annual meeting is expected on Monday. Carr' Business, the second-board listed accounting firm, gained 20c to 140. Lasercorp firmed 2c to 25c ahead of yesterday’s annual meeting, with its directors’ fees increase. Mair Astley lost a further 8c to 176 on its lower result. The primary produce group lost 6c on Monday. Goodman Fielder Wattie eased 4c to 300 in spite of its profit announcement being imminent, and Brierley Investments was 1c off at 130 ahead of next Monday’s result Carter Holt Harvey eased 2c to 175 in busy trading. Among second-line issues, Apple Fields eased 10c to 70, the Christ-church-based orchardist being seldom traded. Ebos eased 10c ex dividend in spite of reporting a higher result, but Reid Farmers was ahead 9c ex dividend and bonus. Mayfair, an Auckland property group, climbed 7c after the directors expressed some confidence in the property market. Gold miners were weaker on the declining trend in bullion prices, L and M losing sc, Max Resources, Ic, and Otago Press and Produce sc. Mineral Resources was also easier, and the falls were reflected in the Barclays mining index losing 2.67 points.