SHAREMARKET Firm trend reversed in afternoon trading

Press, 17 May 1989, Page 38

SHAREMARKET Firm trend reversed in afternoon trading

The New Zealand sharemarket reversed course in afternoon trading yesterday, after a very firm start in the morning. The Australian sharemarket turned easier after news of the mostly-expected sAustl.2 billion deficit. This in turn put pressure on our market. The Barclays index of industrial shares closed 8.11 down at 1984.27, despite the market having been about 12 points firmer at midsession, while the NZSE gross index closed 3.35 down at 727.38, 8.25 points off its high for the day.

Falls outnumbered rises three to one, as 19.3 million shares changed hands for $62.0 million — an average of 322 c a share. Most leaders moved only a few cents either way. An exception was Fisher and Paykel Industries, which slipped 5c to 405. This followed news yesterday that Equiticorp’s statutory receivers had sold 26 million F and P shares for 400 c a share.

More than 12 million Fisher and Paykel shares, worth $55 million, were reported to have traded yesterday, but most were late sales from Monday. “Volume yesterday was actually low. That’s why it didn’t take much to send the market down,” one broker told NZ Press Association. A spokesman for Jordan Sandman Were, Ltd, commented that 2000 points on the Barclays Index and. $5 for Fletcher Challenge’s share price seem to be the immediate barriers to further market advances, but these modest checks in prices are healthy and yesterday afternoon’s reversals were not of any moment. “The jaw boning on interest rates continues and yesterday saw a strong market for bank bills bringing yields for 90 day paper down to the low 13.20’s — the lowest for some time. The 11/93 indicator Government Stock traded down as low as 12.98 per cent during the day closing around

13.03 per cent. In the bond market the immediate outlook is for yields to show a period of consolidation while we await further news. “On the local front Amuri’s result probably disappointed the market, and the group has experienced difficulties with the subsidiary activities. However, a strong balance sheet reflects a proprietorship ratio of 70 per cent. As a result the NTA a share of 77c compares very favourably with the latest share price. Amuri will be quoted ex a final dividend of 1c of July 7,” the spokesman said. Changes of one cent were chalked up by Fletcher Challenge (down to 495), Brierely Investments (down to 167) Carter Holt (up to 243), Magnum (down to 440), Robert Jones Investments (down to 98) and NZI (down to 56). The Barclays share price index futures contract closed at 2031, a 45 point premium to the physical, but closer than on Monday.