SHAREMARKET Forest issues fall

Press, 19 July 1989, Page 40

SHAREMARKET Forest issues fall

The sharemarket edged down yesterday, led by heavy sales of Fletcher Challenge, which closed 8c down at 457. Fletcher Challenge has been falling since Monday of last week. It is down 18c (3.7%) this month and is only 10c above its price at the beginning of the year. Reports suggested a fall in newsprint prices and the purchase of a large block of shares by the staff, who now control about 30% of the company. Almost 2.5 million Fletcher Challenge shares traded yesterday, after strong sales on Monday. The number of Fletcher shares on the market on a quiet day outstripped demand. The Barclays industrial index fell 15.30 points to 1904.92. Issues whose prices fell from Monday were 25, and rises were only 18. Volume was moderate, 12.6 M shares worth $19.9M changing hands. Overnight London was steady, and Wall Street was a tad down after its strong run of the last two weeks. The Australian market was up a fraction, the all-ordinaries index closing 1.2 points up.

Carter Holt which has strong forestry interest, was also down yesterday. A total of 470,300 shares changed hands closing at 242, down Bc.

Tozer Kemsley Millbourn, the British motor-vehicle holding company in which Industrial Equity (Pacific), Ltd, the Hong Kong arm of the Brierley empire holds a 63.7% stake, rose 13 to 355. It has risen from 310 at the beginning of the month a lift of 14.5%. lEP was up 3c at 292, taking its rise for the month to 9%. The newspaper stocks, which have been bought up this year, eased. Wilson and Horton eased 5c to 705, and Independent Newspapers was 3c down at 442. Of local issues, Firestone eased 20c to 275 on a small parcel. It has fallen from 325 in the second week of May, and is now at its lowest since just before Christmas. However, Ernest Adams continued to surge ahead, rising 5c to 290, the peak it reached last, month before going exdividend (3.5 c The issue will go ex-bonus (1:10) on

August 2. Leslie Scurr, market operator for Egden Wignall and Company said that political squabbling in Wellington, the lack of direction of interest rates, and little investor commitment before next week’s Budget, was still adding to the confusion of the local market. “The short term outlook for the market is of concern, as several factors appear to be working against it,” Ms Scurr said. Apart from Fletcher Challenge and Carter Holt, the balance of the market leaders had remained firm such as Lion Nathan at 348 (up 1c) and Brierley Investments at. 178 (up 1c). The futures market slightly revised.its view of the sharemarket yesterday. It fell 21 points to close at 1949, a premium to the physical of 2.3%, compared with almost 2.6% on Monday.