Pacer wilts on N.Z. market

Press, 29 September 1988, Page 36

Pacer wilts on N.Z. market

Pacer Kerridge continued to wilt on the New Zealand sharemarket yesterday, losing a further 80c to 380 c. The investment, entertainment and bloodstock group shares sold at 550 c at the beginning of the month, and at 1065 c at the beginning of the year. This means that Pacer, a frontrunner in share prices last year, has lost ground of more than 60 per cent since trading started in 1987. Pacer was queried by the Stock Exchange in February after the shares dropped from 950 c to 620, and last month the shares dipped from 600 c to 520 after it was revealed that the company’s chairman, Mr David Phillips, held an option to buy more Pacer shares, which was not disclosed in the 1987 annual report. The diversified company, which also includes tourism, health foods and banking among its activities, must be due to report its annual result soon. The company’s balance date was altered to June 30 after merging with the Kerridge Odeon Group. The New Zealand sharemarket managed to come off a three-month low yesterday in moderately active trading, the Barclays industrial index firming 4.22 points to 1949.15. This means that the December futures premium against the physical is 34 points against 32 on Tuesday.

Mr Simon Flood, market operator for Egden Wignail and Company, a Christchurch sharebroker, said that there was little buying interest from Australia after the release of that country’s higher current account deficit figures. Some buying support for market leaders was apparent towards the close. There was some situation interest, such as Brierley Investments buying more of Wellesley Holdings, from institutions, but the private investor had just pulled out of the market, he said. The Australian market closed barely steady, but Tokyo stocks roared ahead, the Nikkei index climbing 252.45 points to 27,752.01. Wall Street was marginally lower and London slightly firmer overnight. Southern Petroleum’s optionholders could feel justifiably annoyed that news of production tests at the Waihapa No. 2 may have come too late to help them make a decision on whether to convert their options or allow them to expire. Trading in the options ceased last Friday, the final delivery date on options for broker-to-broker accounting was Tuesday, and the options expire tomorrow. Optionholders had been pressing Southern Petroleum for news on the Waihapa No. 2 well, but last week the company said it could provide little information because of delays in testing.