SHAREMARKET Bulls run cold on comments

Press, 5 December 1989, Page 47

SHAREMARKET Bulls run cold on comments

The New Zealand market began the week on a firm note yesterday, although the gain was not as bullish as might have been expected. Mr Tim Preston, operating partner for Hamilton, Hindin, Greene, a Christchurch sharebroker, said that strong gains by overseas markets during the week-end were offset by negative comments from an Australian analyst about the New Zealand sharemarket The comments by the analyst were made because of such matters as the recent DFC New Zealand statutory management and the futures debacle involving Jordan Sandman Futures. The report caused overseas buyers to be largely absent from the New Zealand equities market yesterday. “This market has been driven by offshore buyers, and unless they return a thin, lacklustre market can be expected,” Mr Preston said. The Barclays industrial index closed 5.05 points up at 2074.47, with the Stock Exchange’s gross index ahead 2.15 points, slightly lower than its morning call advance of 2.25 points. Turnover almost doubled on Friday’s volume to 8.2 million shares, worth J10.7M, with falls just shading rises. The Dow Jones jumped 42 points on

Wall Street on Friday (Saturday morning, N.Z. time) and London’s Financial Times 100 index was ahead 34 points. Tokyo rallied to a record yesterday, the Nikkei index recovering Friday’s 136point loss when it surged 171.19 points to 37,303.87. Buying resumed in both Fletcher Challenge and Robt Jones Investments, after settlement of their cash issues last week. Fletcher jumped 6c to 438 in spite of Bain Securities, an Australian market analyst, downgrading the group’s profit projections after pessimistic statements by Fletcher’s chairman, Sir Ronald Trotter, at the group’s annual meeting on November 21. Robt Jones was 2c dearer at 121 as the group moved to buy additional buildings. In spite of the strong rally on the Australian sharemarket yesterday, other trans-Tasman groups did not do as well as Fletchers.

Brierley Investments, Elders Resources NZFP, and Goodman Fielder Wattle were all knocked back. Brierley offshoots, Industrial Equity (Pacific), of Hong Kong, and Britain’s Tozer Kemsley Millbourn had mixed fortunes, lEP gaining 3c and TKM losing 2c. London Pacific led the most actives on a turnover of more than 3M, with

almost ail the shares going through off market at a price of 13c. This price was steady on the market sales. The new Malaysian owners of the diversified investment group told shareholders at last month’s annual meeting that it was their intention to expand the company’s business in New Zealand. Wilkins and Davies, the Aucklandbased construction group, which joined the long list of public companies to go into receivership last Friday, was untraded yesterday. The company’s shares were quoted buy, 1c; sell 20c. The last sale price was also 20c.

Michael Hill International’s notes debuted at 145 c yesterday, compared with an issue price of 100 c. The jeweller’s head shares were 5c firmer at 145 c. Among other second-liners, Regal Salmon was steady at 95c after reporting a lower profit in its latest year, but New Zealand Salmon was 1c easier at 54.

Wilson and Horton Jumped 18c to 900 on reasonable volume, and its listed publishing competitor, Independent Newspapers was steady at 650. Troubled groups Chase Corporation and Pacer Kerridge were mixed, Chase losing 0.5 c and Pacer gaining Ic.