Market falters in victor’s wake

Press, 30 March 1989, Page 23

Market falters in victor’s wake

The New Zealand sharemarket failed to get much mileage out of the America’s Cup victory, as rises and falls were in balance, and leading stocks were mixed. The market should also have been helped by the strong rises by Wall Street and Tokyo, and it was discouraging that it was not moved.

Capital Markets, the subsidiary of the Fay Richwhite merchant bank, was the centre of attention after the news that New Zealand has won the America’s Cup on a United States court ruling. The shares traded as high as 138 in the early morning, and closed at 130 c — up 18c on the day. The shares appeared to be chased by private investors starry-eyed by the prospect of Capital Markets being linked to

the financial benefits of a cup defence in Auckland in 1991. Whatever excitement there was happened in the morning, and was dissipated by the afternoon. The Barclays index of industrial shares finished up 3.30 points to 1918.38, while the NZSE gross index closed up 0.64 points at 707.80 after standing at 709.04 at lunchtime.

Trading volume was fairly good, with 9.2 million shares exchanged for $lO.l million — an average of 110 c a share.

Mr Richard Boulton, research partner of Hamilton Hindin Greene, said that yesterday’s highlight was the judgment in New Zealand’s favour on the America’s Cup. “It was the psychological boost the market needed, although the effect did not spin off into

other stocks. “The rest of the market was fairly quiet. “Brierley Investments again led the turnover. Its fundamentals look good, and if the share prices go lower offshore, interest should reappear,” Mr Boulton said.

“Buyers of longer assets have emerged as the cash rate has eased. Yields are down across the board. April primary liquidity is projected to be easy and rates are currently expected to ease further, except for March monthend balancing,” Mr Boulton said.

Fletcher Challenge finished steady at 524 in moderate trading, and Goodman Fielder Wattie put on 2c to 260. Elders NZFP was also unchanged, but Brierley Investments slipped 1c to 147.