Feltrax dominates trading

Press, 7 October 1988, Page 12

Feltrax dominates trading

Feltrax dominated trading on an active, firmer New Zealand sharemarket yesterday, in reaction to the BTR Nylex take-over. The Feltrax sales included special off-market parcels of more than one million shares at 322 c, 2c above the offer price that BTR Nylex is paying for the 80 per cent stake held by Equiticorp International and the remaining public shareholding. Market speculation was that the sales were deliberately above the 320 c level because the alternative cash and scrip offer from BTR was seen as a cheap entry into the Australian company. The scrip offer has yet to be finalised. BTR has been selling for about Aust 820 c. On Tuesday, Equiticorp International announced that it was selling its 80 per cent stake in Feltrax to BTR Nylex, an Australian diversi-

fied industrial group which is owned by BTR, Pic, of Britain. The deal is subject to Equiticorp’s finding a third party for New Zealand Steel, but likely buyers already named include Fletcher Challenge and Broken Hill Proprietary. Mr Ken Stevens, market operator for Guthrie Equities, a Christchurch sharebroker, said that although market attention was on Feltrax, selling pressure checked Brierley Investments and Fletcher Challenge. Besides the special sales in Feltrax, NZI Corporation continued to be actively traded, 280,000 shares selling at 122 c, the same price as the insurance issue closed at on market, he said. After the profit report by Pacer Kerridge, buying orders started to come in at 450, but there was little market reaction.

The Barclays industrial index rose 9.45 points to 1973.36, but the same trend was not reflected in the Stock Exchange’s capital index, which firmed 0.92 points. The Barclays futures index ended on its low for the day for a 17-point premium to the physical, up two points on Wednesday. Rises just shaded falls 27 to 25 and turnover was an active 13.4 M shares, including 5.8 M Feltrax shares. Feltrax closed at 321 c up 8c on the day, and its new shares jumped 82c. Brierley closed 1c up to 132, but Fletcher Challenge was again weaker, losing 1c to 473. Goodman Fielder Wattie was prominent on a 6c gain after retreating recently in line with the Australian market.

Pacer Kerridge dropped 70c to 450 in spite of a higher dividend and profit an-

nounced yesterday. Robt Jones Investments was 2c up at 112 on the company’s stating it would be announcing a record half-yearly profit later this month. General Properties stood out on a 15c loss, and Helicopter Line was 5c firmer. Lane Walker Rudkin climbed 6c to 101 on a statement in the company’s latest annual report that it was debt free. Prudential Building and Investment Society was 10c firmer on its result earlier in the week, and Apple Fields also gained 10c. The Australian market was firmer. In Toyko, the Nikkei index was down all day, reaching a high 27,395.79 at the start of the afternoon session, but falling sharply to a low 27,078.56 towards the close of mounting concern over Emperor Hirohito’s health.