SHAREMARKET Leaders move off highs

Press, 26 September 1989, Page 22

SHAREMARKET Leaders move off highs

Market leaders moved off early highs to close easier on a quiet New Zealand Stock Exchange yesterday, after a lack of overseas buyers. The Barclays industrial index retreated 19.57 points to finish at 2243.80, without any ex dates to influence the indicator. The Stock Exchange's gross index dropped 7.87 points to close at 884.69, after being 1.45 points down at the morning call. Turnover was a paltry 7.2 million shares, worth $18.7M. But the low volume did nothing to raise demand for leaders, with one broker predicting the re-emergence of overseas buyers later' this month.

Mr Patrick Lee, of United Sharebrokers’ Christchuurch offices, said that the prices of the leaders were steady in the morning session, but except for Magnum Corporation and Robt Jones Investments the stocks shed a few cents in the afternoon.

Local buying interest had temporarily waned as investors were reserving funds for the forthcoming Air New Zealand and Fletcher Challenge issues. “The market’s performance this week is likely to be influenced by overseas

trends, but in the longer term prospects for the market still remain positive,” he said.

As expected, PDL Holdings came back 5c to end at 215 c on a low turnover, putting it 1c above the cash offer price set last Friday by the Robertson Stewart Family Holdings. With only 16% of the Christchurch-based plastics firm’s capital in public hands, the price is unlikely to move far above the offer price, unless a revised bid is made.

PDL’s listed electrical and plumbing distribution offshoot, Lasercorp, firmed 1c to 38. The possibility of the close-out of entry into PDL, plus last Friday’s prediction of better things to come from Lasercorp, probably helped the issue. Lasercorp has also been a buy recommendation among brokers recently. Brierley Investments retreated 1c to 217 in line with the market trend, ahead of Thursday’s annual profit announcement. Among other leaders, Lion Nathan lost 6c to 409 as a large number of ifs surround the likelihood of the Australian brewing deal with Bond Corporation succeeding. Capital Markets fell 10c to 185 as investors appeared to be re-rating the investment group after New Zealand’s America’s Cup team, lead by the

company chairman, Mr Michael Fay, lost its appeal to take the cup in a New York court hearing last week. New Zealand Equities firmed 2c to 35 as Paladin, its Hong Kong-based associate, is moving to acquire the remainder of the New Zealand investment company’s shares as part of a reverse takeover? Paladin, was steady at 13c.

Among second liners, Ascot Management, the trust group, rose 15c to 75 as its annual result is expected within the next month. Michael Hill, the retail jeweller, which has been on a roll, came back sc, and Baycorp was steady at 75c, having dropped 15c on Friday after reporting a 67 per cent fall in net profits. Waitaki International was steady at 45c ahead of the news of further rationalisation in the meat industry through Waitaki merging its North Island interests with Auckland Farmers’ Co-operative Freezing. The two listed newspaper publishers, Wilson and Horton and Independent Newspaper, lost 5c each. The miners were mixed as L. and M. moved up 2c, but Mineral Resources lost 3c. Spectrum Resources was untraded in the wake of Friday’s low profit report.