Goodman Fielder brakes advance

Press, 28 April 1989, Page 19

Goodman Fielder brakes advance

A drop in the share price of Goodman Fielder Wattie restrained an otherwise firm New Zealand sharemarket yesterday, in fairly active trading.

Goodman Fielder led the market, trading 2.3 million shares worth $7.2 million. The shares closed at 303 c, down 9c on Wednesday’s close. New Zealand buyers accounted for most cf the trading in Goodman shares — speculating on a further and higher offer from Ranks Hovis McDougal. The Barclays index of industrial shares edged up 0.19 points to 1957.06. Total turnover was 10.8 million shares exchanged for $lB.B million — an average of 175 c a share.

There were three rises for every two falls. Demand for Goodman stock dried up as investors became confused by comments from the chairman, Mr Pat Goodman, that he was prepared to discuss a merger proposal with Ranks.

The dual-listed stocks suffered a little from a stronger New Zealand dollar, but other stocks were firm as investors spent the cash from their sales of Goodman stock. On the whole, the market held well, as shown by the broadly-based N.Z.S.E. gross index which outstripped the Barclays, with its proportionately heavy weighting of G.F.W. Among the stocks listed on both sides of the Tasman Fletcher Challenge was unchanged at 500 c,

after being 505 c at lunchtime, Elders NZFP was also steady, at 306 c, while Brierley Investments slipped 1c to 156 and Chase also 1c to 44. Against this trend, NZI Corp put on 7c to 57, and lEP rose 2c to 242. Carter Holt gained 4c to 238, Lion Nathan 2c to 337, and Robert Jones Investments also 2c, to 93. Mr Derek Howarth, of Lawrence Millton and Howarth, said that concern over the outcome of the Gooddman bid reflected in the price falling to the $3.03 level, as a merger appeared the logical outcome thus reducing the possibility of a market flushed with cash as a consequence of an offer. The leaders all held their ground with substantial interest at support levels.