Brokers expect further rise

Press, 15 February 1986, Page 22

Brokers expect further rise

“After a dramatic start to the week’s trading, with partial take-over bids by Brierley Investments and Chase Corporation the major influences in the market’s upward trend, the index broke through the magical 2000 barrier on Tuesday to finish at an all-time high of 2020.79,” said Mr Ken Stevens, market operator for Harkness and Company, Christchurch sharebroker. “There was a gradual decline in the market towards the week-end, with the market ending on a firmer tone on Friday. “We could see the market remain firm next week as money is reinvested back into it by investors who accepted the take-over offers,” Mr Stevens said. Mr Brian Kreft, of For-

syth Barr and Company, Dunedin sharebroker, commented: “Share prices moved ahead at a faster rate .than was anticipated during the week with the funds flowing back into the market from the DB and FTC market offers.

“These funds were principally being re-invested into leaders such as Brierley’s and Chase. There has been a lot of talk that institutions have been supporting the market and others state that it was the private investor who has been active. It is my belief that it was in fact a combination of the two and the aforementioned stand in the market bids.

“The institutional investment we witnessed was highly selective, with emphasis on fundamen-

tals. Stocks moving in that direction included L. D. Nathan and Cable Price Downer, for example. “The special situation stocks such as New Zealand Marine have continued to run, and there is speculation that a large holding may be being accumulated in that stock. Omnicorp has remained steady and now the Endeavour position has been clarified this stock should gather some momentum in the coming weeks.

“In my view the market will continue to display volatility next week although I expect it to resume an upward path. Any rise, however, will not be dramatic as the market will be consolidating at this higher level,” Mr Kreft said.