SHAREMARKET Late spurt helps

Press, 23 February 1989, Page 35

SHAREMARKET Late spurt helps

The New Zealand sharemarket put on a spurt in the afternoon call yesterday to recover some of Tuesday’s 41-point drop in the Barclays index.

A helping hand from a stronger Australian market and firmer prices among selected market leaders caused trading to end higher. The market was a tad easier in the morning call, the Stock Exchange’s capital index being 0.81 points behind, before recovering to finish 3.40 points up to 647.63. The Barclays industrial indicator rose 8.68 points to 1964.16, as turnover reached 10.47 million and fails shaded rises.

Mr Grant Taylor, a senior operator at Francis Allison Symes, a Wellington sharebroker, said the market had languished in the morning, but firmed in the afternoon call because of buying support on the Australian exchange. The Bank of New Zealand lost ground, selling as low as 118 compared with Tuesday’s 125 c close, but came back to end at 121. However, the real interest in the bank still surrounded what the actual bad debts provision would be for the year. NZI Corporation found buying support yesterday, recovering from Tuesday’s close at 42c in reaction to the company's suspension from trading, to end at 50c, he said.

Selling was only moderate in the Bank of New Zealand

in spite of the furor surrounding the resignation of the deputy chairman, Mr Rob Campbell, who had accused the Government of creating instability for the bank. The BNZ lost 4c, the same amount it fell on Tuesday. NZI was the second most active issue traded, on a volume of 2.218 M shares, compared with Tuesday’s 1.7 M turnover. The issue moved between 44 and 50 on the day. Pacer Kerridge recovered 12c to 32, having been queried by the Stock Exchange on Tuesday about the reason for its price slipping since it sold 48c ex bonus on February 13. Pacer said it knew of no reason why its price was falling, noting that volumes were low.

Waitaki International, another, company queried by the Exchange, on Tuesday, also had a turnaround in its share price, the issue gaining 6c to end at 18. Again, the company could not offer any reason to the exchange for its price falling. Waitaki reported a S97M loss for its latest year, on December 20. Countrywide remained steady at 230 in spite of reporting a 48% leap in profits. However, it would appear the bank’s good result had been expected as the issue has been steadily firming this month. ANZ Banking Group, which retains a courtesy listing on the New Zealand market, gained 15c to 705. Capital Markets was 2c firmer.

The market remained unimpressed about the Hanimex result as Chase Corporation slid 4c to 62 on the highest individual turnover of the day —2.2 M shares. Chase owns 89% of Hanimex, the Australian photographic equipment group, which it intends to sell to reduce its debt. Chase’s price dropped 26c to 66 last week after an Australian credit-rating firm downgraded Chase’s credit rating. Among the leaders, Fletcher Challenge gained 2c, Goodman Fielder lost Ic, and Carter Holt jumped 7c. InterPacific Equity, which is about to be known as McConnell Dowell, slumped 17c to 10. Lion Nathan also stood out on a 6c gain. Wilson Neill, the Dunedinbased liquor and primary resources group, finned 2c to 68. Its 63%-owned subsidiary, Cascade, of Australia, reported an improved profit earlier in the week. Lane Walker Rudkin, the Christchurch clothing manufacturer, which will make its interim profit report tomorrow, lost 2c to 125. Among second-line issues, Michael Hill rose 8c to 100 after reporting a half-yearly profit 143% ahead of the previous corresponding period. Lasercorp slipped 3c to 22, but its parent company, PDL Holdings, rose 5c to 170. AUegra Corporation, the bloodstock company, eased 6c to 30. New Zealand Light Leathers, the Washdykebased tanning company, fell 5c to 105.