SHAREMARKET Late firm trend

Press, 12 October 1988, Page 40

SHAREMARKET Late firm trend

After a sluggish opening, the New Zealand sharemarket picked up the bit to finish firmer in busy trading yesterday. The market took little notice of Wall Street’s setting a post-crash high overnight as the Dow Jones average added a further nine points to its 42point gain on Friday. However, a firmer Australian market added impetus to the early steady trend, to help the New Zealand market finish higher. At the mid-session, the Stock Exchange’s capital index eased 0.48 points, but it finished 1.69 points firmer at 656.98. Volume was heavier, 11.6 million shares, compared with Monday’s 6.8 M. The Barclay’s industrial index gained 2.41 points to 1979.87, as the futures premium moved from 26 points to 36 points. Rises beat falls almost two to one.

Mr Simon Flood, market operator for Egden Wignail and Company, a Christchurch sharebroker, said a few more private clients were dipping into the market.

But buying by them was cautious, mainly confined to small parcels in market leaders such as Brierley Investments, Chase, Robt Jones, and Fletcher Challenge. “I think that there will be a substantial surge once October 19 and October 20 are

past, the dates associated with the sharemarket crash of last year." Busy trading in Southern Petroleum was the feature of the market. Brierley later told the Stock Exchange it had acquired 8M Southern Petroleum shares to take its holding in the company to 68.6 per cent. The oil issue gained 2c to 40. The company has filed a promising report on the Waihapa oil exporation area.

Carter Holt Harvey continued to recover from Friday’s He drubbing after news of political uncertainty in Chile. CHH rose 2c to 180. Feltrax also firmed to 320 c, BTR Nylex’s offer price, having retreated from that mark on Monday. Equiticorp, which sold its 80 per cent stake in Feltrax to BTR, was 1c easier, having firmed since the deal was announced last week.

Among second-liners, Bancorp jumped 8c to 115 on its $2.9M half-year profit, and Pan Austral, formerly Miniskips, firmed a further 1c to 7c. Taylors Group added a further 20c to 240, and McKechnie Pacific gained 20c on last week’s profit report.

Kupe Group lost 2c to 28 in reaction to news that its cash issue had been altered from one-for-two to one-for-six. It indicated some caution by its

major shareholders, EuroNational and Government Life, with payments spread over four years. Pacer Kerridge fell 20c to 430 in spite of paying a higher dividend and showing earnings growth. The diversified trading group was hit by a wave of selling which saw the issue drop from 500 to 325 in four sessions last month. The issue recovered as its chairman, Mr David Phillips, made a personal offer of 600 c for 5 per cent of the capital, which had conditions attached.

Trans-Tasman issues were mixed. Elders Resources NZFP and Goodman Fielder Wattie were both weaker, but Fletcher Challenge gained 3c. ANZ Banking Group continued to improve, gaining 5c to 670. Jarden Morgan lost 2c and its Luxembourg-based company, Jarden Europe, was 20c down.

Miners were largely absent from price changes as gold reports continued to be bearish for bullion. Sigma Resources eased 2c as Delta announced it was extending its offer. The Barclays mining index firmed 0.82 points to 162.57.

In Tokyo, the Nikkei index rose 211.33 points to 27,469.60 in quiet trading, with many investors still absent after a national holiday on Monday.