THE' MARKET Further bid activity causes excitement

Press, 11 February 1986, Page 26

THE' MARKET Further bid activity causes excitement

The New Zealand sharemarket rose for the seventh consecutive trading day yesterday and Barclays index of industrial shares jumped to a record high for the second day in a row — reaching a level not far short of the 2000-mark.

The index rose 27.27 points to end at 1994.76, against Friday’s close of 1967.49. Trading was firm, with a 6.7 million turnover, worth $10.9 million.

Chase Corporation, Ltd’s $5O million bid for 20 per cent of the Farmers Trading

Company, and the Brieriy Investment, Ltd, decision to end its stand for a stake in Dominion Breweries, caused a flurry of selling and prereinvestment enthusiasm.

“The excitement in the market continues to remain high,” said Mr Tony NorbertMunns, operating partner for the Christchurch sharebroking firm Egden Wignail and Co.

“The 20 per cent bid by Chase for FTC at 175 c has an escalation clause; this means a client now has the choice of selling at the offer price of 175 c by Chase or at a higher price that the market was bidding at the close of 177 c. If the shares are sold to another bidder then the client is not entitled to any higher price that Chase may pay in the next three - months,” he said.

“Turnovers remain high, with renewed buying interest in Fletchers and Equity Corp, solid interest in N.Z. Marine and N.Z. Salmon, and property shares remain firm.” Another buyer entered the market for FTC shares at 177 c —37 c more than Friday’s close — and as only 1.5 million shares changed hands yesterday, it would appear that Chase is a long way away from its goal. The stimulus spread widely

99 shares rose, and 31 fell. Riding high on the back of its FTC bid Chase itself closed 20c higher at 615. It

shared the lead of gains ' made by the majors and • Equiticorp also Improved 20 to 365.

The Equiticorp associate i which started with a leisure > park, Rainbow, made a 30c jump to close at 305. Brokers .’ thought its upcoming profit would show the confidence - justified. - - vf Fletcher Challenge made

12c to 3152 while Wattle » Industries, Capital Markets, and Lion all rose sc, to 335, ; 265 and 470 respectively. = Carter Holt put on 3c to > 325, Winstone improved a ' cent to 158 while Goodman,. ANZ and Brierley all closed « even. NZ Forest products was J the only loser among the '.-? leaders. It dropped back 3c to j finish at 2138.

Among the second-liners CPD gained 10 to 335, Apex 15 to 377 while McConnell •• Dowell and L. D. Nathan T each rose 5c to 120 and 280.

After its 65 per cent in- b terim profit announcement * the Christchurch Press rose ’ 20c to 250, while Auckland’s Wilson and Horton made 10 s to 800. »

National Bloodstock rose 23 ? to 400 while Ajax (220), A. I Ellis (100), Newmans (250) P and N.Z. Salmon (770) all • gained 10c. Transport North Canter- •) bury, which was recently was r sold off by Newmans, made \ the most spectacular loss:— It J dropped 50c to 300. Mace lost I 17 to 418 and McKechnie 10 to 185. ■!