SHAREMARKET Tuesday’s pattern repeats itself

Press, 8 December 1988, Page 28

SHAREMARKET Tuesday’s pattern repeats itself

The New Zealand sharemarket repeated Tuesday’s pattern and finished higher in spite of a weakening in tone late in the day. It rose in the morning on the strength of gains by Wall Street overnight, but then failed in the late afternoon to respond to a firmer Australian market.

The market is still dogged by negative investor sentiment based on uncertainties over the political leadership and the fiscal outlook. The speech by the Prime Minister, Mr Lange, to a large gathering of Christchurch businessmen, although it was meant to be positive, did little to restore confidence on the day. But perhaps there has not been sufficient time to digest it. But it is obviously going to take a lot to reverse the present despondence to the much more positive and resilient sentiment of only a month ago.

The Barclays index of industrial shares rose 10.72 points to 1810.62 as many leading stocks closed higher although off their peaks. The N.Z.S.E. gross index was 2.58 points higher at 667.73.

One aspect of yesterday’s market that was difference from Tuesday was the ratio of rises and falls. Yesterday rises outnumbered falls if only by a small margin.

Turnover was average, 6.5 million shares trading for $8.2 million — an average of 127 c a share. Fletcher Challenge rose 2c to 450, Brierley Investments was unchanged at 118, but Goodman Fielder Wattie put on 6c to 274. Elders NZFP rose 3c to 319, Carter Holt Harvey was 4c dearer to 183, Chase Corp was up 2c to 103. Magnum edged up 1c to 388, and NZI Corp also 1c to 59. Robert Jones Investments gained 2c to 102, while Paynter recovered

1c to 41c after announcing a $6.4 million bottomline loss.

Stocks to fall included the newspapers, with Wilson and Horton slipping 2c to 538 and INL 5c to 355. Waitaki continued its relentless slide with a 2c fall to 38, Wilson Neill dropped 10c to 70, while Lion Nathan eased 1c to 252.

Mr Patrick Lee, of the Christchurch office of United Sharebrokers, said that the New Zealand sharemarket recorded a minor rise yesterday on average turnover. “The improvements in both the U.S. and Australian markets helped investor sentiment but the market failed to react to any degree to Mr Lange’s speech in Christchurch. Both fixed interest and currency markets were steady, and, like in the sharemarket, nobody is prepared to make the running,” Mr Lee said.