SHAREMARKET Push from overseas

Press, 31 August 1989, Page 37

SHAREMARKET Push from overseas

The New Zealand sharemarket surged again yesterday. It rose 55.27 points on the Barclays index to 2416.9 which is its highest since November 3, 1987, when it was 2497. That was two weeks after October 20, 1987, when the New Zealand sharemarket crashed more than 500 points on the Barclays index. Rises outnumbered falls almost five to one yesterday, on lowish turnover: 12.7 million shares for a total value of $22.8M. Strong overseas interests — from Asia, the United States, and Britain — was evident in the market yesterday. The market leaders were to the fore in the rally. Brierley Investments, which led turnover (2.7 M shares for a total value of S6.BM), was up 5c at 252. Fletcher Challenge (739,300 shares for a total of $4.09M) was up 9c at 556. BNZ (1.17 M shares, 51.47 M), rose 4c to 126. Carter Holt rose 9c to 321 on sales of 207,100. Overnight, prices eased on Wail Street, with the Dow Jones industrial average down 16.73 points to 2726.23, and the number of issues failing outpacing

gainers about five to four. The fall was attributed to a sell-off on computer program trading linked to share futures. The Australian -market was lightly easier yesterday, the main indicators falling a few points. Leslie Scurr, market operator of Egden Wignail and Company, said the Moody’s downgrading of the Australian Market on Tuesday and the nearly 100 point fall in the N.Z. dollar-Australian dollar cross-rate was encouraging further overseas funds to be invested in the quality New Zealand stocks. "A shortage of quality scrip in the market is forcing buyers to push this market to levels as attained yesterday.” Strong investor support was generated in Robt. Jones and Capital Markets. All other leaders showed gains, she added. Robt Jones Investments closed 13c up at 150. This is up from 93c at the beginning of the month, a rise of 57c, or 61%. More than 900,000 RJI shares sold yesterday, for a total value of 51.33 M. Capital Markets, the Fay Richwhite offshoot which is a major shareholder in the BNZ, closed at 215 c, compared with

Tuesday’s 207, despite going ex a 7.5 c dividend yesterday. Thus it made a theoretical gain of 15.5 c. Cavalier soared 35c to 265 on sales of 412,700 after Tuesday’s announcement of its turnaround from a loss to a profit of SBM. The company is in carpet making and wool scouring. Fernz, the chemicals and fertiliser manufacturer, whose fortunes are closely linked to the state of the country’s agriculture, again rose strongly, lifting 15c to 685. N.Z. Salmon and Regal Salmon both edged up another 3c to 68 and 105 respectively. The newspaper stocks picked up sharply again. Wilson and Horton closed 20c up at 835 after sliding from its peak of 855 on Tuesday of last week. Independent Newspapers rose 15c to 564, a record, beating its price of 560 c a few weeks before the October, 1987, crash. Fisher and Paykel jumped 25c to 530 on total sales of 71,800 shares. It has risen 113 c, or 27%, this month.