Press Release

SHARES in the Newcastle Stock Exchange leapt 72 per cent yesterday on their first day of trading on the Australian Stock Exchange. The initial public offer raised $12 million with the shares issued at 50c. However, they opened at 74c and touched 92c before closing at 86c. Bell Potter Securities client adviser Andrew Gartrell said investors saw the stock as a long-term performer. "Historically, with the ASX as a company, it has shown that in a strong trading market, that's when they produce their best revenue," he said. "Of course, the NSX is a much smaller company, but some other smaller companies are seeking to list on the Newcastle market because the conditions are slightly easier." There are currently 30 companies listed on the NSX with another nine preparing to list. Meanwhile, the all ordinaries index closed 0.8 points higher at 4069.1, with insurers and fund managers among the stronger stocks. Suncorp Metway rose 50c to $18.23, QBE 24c to $15.58 and Perpetual Trustees $2 to $64.75. Mr Gartrell said the announcement of a trading halt by Southcorp and Foster's caused a rally among smaller listed wine companies. "There are some international players that would like an increased presence in Australia, but they haven't been able to find the opportunity," he said. "It means these smaller players could also become takeover targets." Evans & Tate added 6.7 per cent or 9c to $1.11 and McGuigan Simeon 24c to $6.02.