SHAREMARKET Bout of financial end of year blues

Press, 31 March 1989, Page 15

SHAREMARKET Bout of financial end of year blues

The New Zealand sharemarket eased yesterday in fairly active trading as investors stayed on the sidelines ahead of the end of the financial year. Institutions appear to have their balance sheets the way they want them, and were quiet. Little or no action is expected until next week.

The Barclays index of industrial shares fell 12.51 points to 1905.87 while the NZSE gross index closed down 3.79 points at 704.01. This index was virtually unchanged, at 707.85, after the morning session.

Falls just pipped rises, 24 to 22, as 8.2 million shares changed hands for $10.4 million, an average of 126 c a share. The easier New Zealand dollar against the Australian dollar failed to rekindle institutional interest, and overseas buyers were conspicuous by their absence.

Mr Patrick Lee, of the Christchurch office of United Sharebrokers said that after a steady morning session the local sharemarket retreated in the afternoon. “Advancing and declining issues were generally in balance, but weakness in the Australian market caused the prices of our leading stocks to slip in the afternoon.

“Wormaid was the major mover, rising 27c to match the price of 145 offered by the Australian parent company. “The money markets remain subdued, but retail short-term rates continued to soften, as they have done all week,” Mr Lee said. Robt Jones Investments was actively traded and topped the turnover rankings with 1.2 million shares, which fell 2c to 90. On Monday the chairman, Mr Bob Jones, receives a cheque for $75 million for a management contract he holds througli Robt Jones Holdings. It is understood that he will use some of that to purchase more shares in the company.

Over the whole market price movements were in a narrow range. Among the leaders falls of 2c each were recorded by Fletcher Challenge at 522, Goodman Fielder Wattle at 258, and Wilson and Horton at 630. Capital Markets lost some of the wind out of its sails and slipped 3c to 127 after Wednesday’s momentous news. Brierley Investments also lost 3c, to 144, but Hong Kong offshoot lEP was unchanged, and Tozer KM, of the UK, put on 5c to 300. Elders NZFP dropped sc, to 315, Chase Corporation 4c to 54, while Wilson Neill slipped 1c to 72.