Olympics take wind out of market's sail

Monday 18th September 2000

With many punters glued to the television screen instead of their computer, sharemarket investors can expect lacklustre market activity as the Sydney Olympics take place across the Tasman.

Arend Lanser, a broker at Direct Broking said that the combination of uncertainty in the New Zealand economy and the Olympic Games will ensure that the sharemarket remains quiet over the next couple of weeks.

"Low corporate activity and bleak prospects for the Kiwi dollar are also hampering some companies share prices," Mr Lanser said.

With Australia focused almost entirely on the Games, New Zealand's stock exchange can't expect any guidance from the All Ords. Many Australian commentators are also predicting a dull next couple of weeks.

Volatility on Wall Street won't help the situation. After a Friday that saw all indices heavily in the red, market watchers will be looking closely at Monday's movements. Even though some are predicting a bounce, if the Street falls any further, New Zealand's market will almost certainly follow.

There are a couple of highlights on the local sharemarket this week. Genesis Research and Development Corporation is listing on Friday. With the float heavily oversubscribed, many commentators are expecting New Zealand's first main board bio-tech listing to be a runaway success. Genesis was originally scheduled to list in May, but pulled the float citing volatile markets.

CommSoft, another long-awaited listing, is floating on Tuesday on the ASX after delaying Friday's expected listing because of procedural matters. Strathmore shareholders who participated in the buy-back and have received CommSoft shares are looking forward to the listing, with many expecting a good opening by CommSoft.

CommSoft aren't overly concerned by listing in the middle of the Olympics. A CommSoft spokesman said that even though the Games might take some attention away from the float for the first week, this was a short term time frame considering where the company plans to be in the future.

And if the dull market starts getting you down, think about going for a spot of bargain hunting. The buzz amongst brokers is that Carter Holt Harvey and Contact Energy are attractive takeover targets while the New Zealand dollar is at an all time low.

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