SHAREMARKET Air N.Z. loses height

Press, 2 November 1989, Page 42

SHAREMARKET Air N.Z. loses height

Air New Zealand shares had their wings clipped yesterday, the issue losing 7c to 274 c under selling pressure on a firmer national sharemarket yesterday. Rumours of a share placement and private client selling combined to drive Air New Zealand’s share price down. More than 600,000 shares were sold, most offmarket

Air New Zealand made its debut on the national sharemarket last week at 275, a flying start considering the shares were issued at 240.

Mr Roger Howell, of the Christchurch offices of Jordan Sandman Were, a sharebroker, said positive > news from overseas sharemarkets, particularly London, led to a rally in prices on the New Zealand Stock Exchange yesterday morning. Prices eased in the afternoon trading session but at the close the market was at a higher level for the day. Volumes were light to moderate and most activity was restricted to the market leaders.

Air New Zealand was one issue to stand out during the day, opening at 283 c, before trading down to 272 c under

the weight of private client selling orders, and finishing the day at 274 c. “The outlook for the New Zealand market is still dependent on sharemarket movements overseas, but the tone of our market appears reasonable with prices likely to consolidate around current levels,” Mr Howell said. The Stock Exchange’s gross index was ahead 11.67 points in the morning, but at the close its gain was cut to 7.07 points. The Barclays industrial index was shoeing a theoretical gain of about 33 points in the morning, the market indicator ending 20.74' points up at 2134.22. Trading remained a thin 7.7 million shares, worth $16.3M, as rises outnumbered falls more than three to one.

Among leading issues, Robt Jones Investments stood out on a 5c gain in response to Monday’s interim profit and predictions of a good year, and Capital Markets was ahead 4c to 158 c having sold its stake in European Pacific Investments. Brierley Investments, and its two overseas interests, Industrial Equity (Pacific) and Tozer Kemsley Millbourne, were also firmer.

A firmer industrial sector on the Australian sharemarket pushed dual-listed Goodman Fielder Wattie (GFW) and Fletcher Challenge ahead. GFWs annual report, with its prediction of a better year, and a steadier investment approach following failures to take over Industrial Equity, Ltd, and Ranks Hovis McDougall, may have been an additional factor.

Paynter Corporation, of Christchurch, rose 2c to 45 after reporting its exposure to property holdings was at an end, and Pacer Kerridge moved up 1c for the second consecutive session after stating it had made progress on debt restructuring. Pacer’s shares now sell at 9c. Broadway was 5c dearer ahead of today’s annual meeting, and deßedcliffe was also firmer after last week’s profit report

Ascot Management the Auckland-based trust management company, rose 5c to 75c on news it was back in the black, and the two newspaper issues, Independent Newspapers and Wilson and Horton, were again firmer.