N.Z. dives on U.S. advice

Press, 8 September 1989, Page 12

N.Z. dives on U.S. advice

A bearish report by a Wall Street broker turned a corrective dip in the New Zealand sharemarket into a dive yesterday morning. The market fell an estimated equivalent of 72 points on the Barclays index in the morning. However, buying support held and the market recovered in the afternoon to close 53.86 points down at 2354.76. Most shares that fell, finished off their lows of the day. Falls outnumbered rises more than three to one on moderately active volume of 15 million shares for more than $34.8M. The chief investment strategist at the American broker, Morgan, Stanley and Company, is blamed for the dip becoming a slide. He is reported to have advised clients to take some profits in the United States, Canada, and New Zealand. The New York Stock Exchange fell 24.89 points to 2719.79 overnight in uncertainty about interest rates and with institutional investment managers in a wary mood. The Australian market fell sharply yesterday following Wall Street and London’s overnight lead. The Tokyo sharemarket was also down again yesterday, the Nikkei index falling 11 points, or 0.35%, after a 170 point fall on Wednesday. Mr Derek Howart, of Lawrence, Millton, and Howarth, said the New Zealand market's fall accelerated following the Wall Street sell recommendation. The fall in New Zealand yesterday wiped S7SOM off

the capitalisation of the market.

However, there was evidence of solid buying interest at the close, with the leaders all off their lows. Mr Howarth sees prospects for an improvement in prices today. Brierley Investments topped the turnover, as is customary, with 3.98 M shares selling for a total of more than $9.98M. Brierley’s closed at 250 c, down 13c, but up from its low of 246 c in the morning. The Brierley offshoots, Industrial Equity (Pacific) and Tozer, Kemsley, Millbourne were also checked, 13c and 10c respectively. Fletcher Challenge closed 9c down at 540 on sales of more than 5.6 M shares, and 2c up from its low of the day in the morning. Independent Newspapers dropped 17c to 555 after trades at 560 c, and Wilson and Horton closed 10c down at 850 after trading earlier as low as 840. Carter Holt Harvey closed lie down at 307 after trading as low as 305. Fisher and Paykel closed 3c down at 542, after trading as low as 530 in the morning. Corporate Investment options fell 15c to 200, its low of the day, and the company’s head shares finished at 282 after being as low as 278. New Zealand Salmon and Regal Salmon, which have risen sharply over the last six weeks eased 5c to 65 and 7c to 115 respectively. The high-flying Cavalier Corporation, the Auckland carpet and wool-scour firm, eased 22c to 240, and EldersNZFP fell 12c to 368.