Sharemarket slips

Press, 1 August 1989, Page 38

Sharemarket slips

The sharemarket slipped 15 points oh the Barclays industrial index yesterday after its good performance of last week. Falls outnumbered rises, 27 to 19.

Overseas, Australia was up yesterday (the allordinaries up more than 5 points) after Wall Street eased last Friday. Tokyo prices were firm yesterday, the Nikkei closing 248.24 points up (0.72%) at 34,953.87. Fletcher Challenge, on heavy volume, 1.646 million shares, fell 7c to 451. It is now down 5% (24c) this month and is only 4c above its price at the beginning of the year.

Leslie Scurr, a market operator with Egden Wignail and Company, said the upward correction in interest rates which began on Friday afternoon continued, but rates were still significantly below what they were before the Budget.

“In reaction to the interest rates firming, the sharemarket weakened, both in share prices and volume.”

Among leader stocks to fall, Bank of N.Z. rights slipped 3c to 15 — the rights trading stops this week. BNZ shares also dropped 3c, to 88. Elders NZFP options topped turnover, more

than 6M changing hands. They closed at 27c, down Ic. Elders has just obtained a five to 10 year SNZB6OM credit facility to make its debt losses term. However, the head shares were steady yesterday.

Revertex Industries, the Auckland manufacturer of resins and chemicals, jumped 18c to 160. It has risen 35c (28%) this month after being fairly steady all year.

Transmark, the former Moyes and Groves, jumped 30c to 190, which was its price at the beginning of the month — before going ex dividend (10c).