Soft opening but confident close

Press, 15 February 1989, Page 44

Soft opening but confident close

The New Zealand sharemarket closed yesterday on a confident note after a soft opening in a continuation of Monday’s falls. Many issues that lost heavily on Monday regained ground yesterday. The NZSE gross index, which stood at 742.70 at lunchtime, recovered to close 3.81 points higher to close at 748.97. It made up about twice as much in the afternoon as it lost in the morning. The Barclays index of industrial shares also had a good recovery, regaining the morning’s losses and 11.58 points of Monday’s loss, to close at 2058.08.

Most buying was again from overseas, as Australian investors found their confidence again, and turned to the New Zealand market in spite of a strengthening dollar. Domestic investors are still sellers on balance.

They ignored the advice of the chairman of the New Zealand Stock Exchange, Mr H. Robert Wilson, and are obviously quite content to let offshore investors own our best stocks.

Monday’s dramatic plunge in the Barclays index acted as a catalyst for a new bout of buying from overseas, and the market recovered well. Rises and falls were in balance, as 13.9 million shares changed hands for $20.4 million, an average of 147 c a share.

More than 63 per cent of the total sales were scored by the four most

heavily traded stocks. Brierley Investments once again topped the list, with 3.9 million shares, which closed at 162 c, up Ic. lEP put on 3c to 240, and Tozer KM 2c to 302. Wormaid was next on the list with 2.4 million shares, followed by Carter Holt Harvey with 1.4 million shares traded. These closed at 260, 5c higher than Monday. The fourth on the list was Chase Corporation; 1.2 million shares sold 6c down at 92.

Among the leaders Fletcher Challenge had the best gain, 10c to 535. Goodman Fielder Wattle, at 301, NZI Corp at 58, and Waitaki at 18, all slipped Ic, as did Equiticorp, to 2. Elders NZFP edged up 1c to 345, while the two brewers both gained ground, Lion Nathan 6c to 300, and Magnum 3c to 420.

Other improvers were Robert Jones Investments, 2c to 110, Corporate Investments, up 3c to 180, and NZ Oil and Gas, up 3c to 93 after recent promising finds in offshore Taranaki. Theseus Investments, which announced its merger with British company Noble and Lund, earlier yesterday morning, had a traded 11,000 shares in a price range from 50 to 52c. A parcel of 50,000 Ararimu Holdings (in receivership) shares crossed hands at 1, down 27c from its previous trade, after its annual general meeting

NZ Equities dropped 6c to 38, and Pacer Kerridge shed 3c to 45 after the 10.2 for one bonus issue.