THE MARKET Index tops 2020

Press, 12 February 1986, Page 37

THE MARKET Index tops 2020

On-market bids continued to push New Zealand share prices yesterday, and made, the Barclays index of industrial shares Jump firmly through the 2900-mark to close at the new all-time high of 2020.79. The rise of 26.03 points was the eighth rise in succession, and the third alltime high in a row. It rode mainly on the back of the bid for 20 per cent of FTC, the huge retailer, by Chase Corporation, worth around $54 million.

“The market was carried along by reinvestment of the FTC money,” said Mr Tim Preston, of Hamilton, Hindin, <nd Greene, the Christchurft sharebroker. “Trad-

log was frantic.” Altogether, more than 22 million shares changed hands yesterday, worth $48.3 million — an average of 220 c.

At the close of trading on Monday Chase was still far from its goal, but yesterday morning investors came running to the 175 c offer, and Chase was able to announce by lunchtime that It had reached its target

As a defensive measure FTC placed 10 per cent of its capital with the AMP Society, but this did not stop the tide.

The stock exchange reported 13,778,705 ordinary FTC shares tradedT and 2,982,496 preference wares

at 500 c each, for a total of more than $39 million.

Many shareholders who off-loaded FTC shares reinvested heavily in the predator, Chase, which rose 8c to 623, and in fellow-investor Equitycorp which Jumped 25c to 390.

But brokers thought many others would use the sale proceeds to satisfy next month’s 55c Capital Markets call on contribs and options, or to pay their taxes.

A one-for-five bonus announced by Fletcher appeared to be defensive in nature, given solid market activity after the announcement Fletcher jumped 18c to 370.

Share table — page 42.