SHAREMARKET Gains dissipated in dull trading

Press, 28 June 1989, Page 38

SHAREMARKET Gains dissipated in dull trading

Absence of overseas interest caused the New Zealand sharemarket to give up most of the gains made on Monday. It had started weaker as falls on overseas markets kept the lid on local trading, but was markedly steadier in the afternoon, with the easier trend almost completely arrested. The Barclays index of industrial shares shed 10.28 points to 1923.57, while the NZSE gross index closed 3.05 points lower at 726.88. This index closed at 727.03 after the morning session. Falls outnumbered rises five to four, as 9.6 million shares changed hands for $12.9 million — an average of 134 c a share. Mainzeal easily led the turnover, accounting for- 4 million shares. Among the leaders, Bank of New Zealand stood its ground, closing at 85, compared with a rights-adjusted price of 84, and earlier sales at 83. The rights gained 3c to 13, below the theoretical price of 14. Miss Leslie Scurr, of Egden Wignall and Company, said that a weaker Dow Jones on Monday night caused our market to lose some confidence yesterday, which was compounded slightly by a weaker Australian market. “Turnover was 12.8 million, helped by a trade of four million Mainzeal at 100 c, a premium of 16c. Brierley traded with good volumes of 861,400

shares at 176 c. The Chase Corporation share price is still suffering from lack of information from the directorate, with the price easing to 18c. Pacer Kerridge remained trading at sc, as the chairman outlined an asset sales programme at yesterday’s general meeting. “The Reserve Bank offered $325M in Treasury Bills, with financial institutions only taking up $80.5M — signifying that liquidity is not overly abundant in the banking system,” Miss Scurr said. As has become common-place this year, there was virtually no interest from local buyers, and coupled with the absence of overseas buyers this had the effect of weakening the dual listings. Fletcher Challenge and Goodman Fielder Wattie fell 4c each, to 484 and 280, while Elders NZFP lost 2c to 308. Robert Jones Investments dropped 5c to 98, while both brewers also eased; Lion Nathan 3c to 322 and Magnum 1c to 300. ANZ was the biggest loser by far, 25c to 595. Canterbury Roller Flour Mills fell 14c to 120. Kiwi Oil lost He to a mere 3c, while 10c falls were posted by PDL at 140 and Mount Cook at 230. Commercial Securities (in receivership) was proportionately the biggest loser of the day, with a drop of 8c to 1c on turnover of 20,000 shares.