COMMERCIAL

Press, Volume LXXXV, Issue 25810, 23 May 1949, Page 8

COMMERCIAL

STOCK EXCHANGES WEEK’S TRANSACTIONS REVIEWED (By Our Commercial Editor.) The week on <he Christchurch Stock Exchange was moderately busy by comparison with recent weeks. In London bank shares showed little alteration from the previous week. During the week Goldsbrough Mort announced its dividend of 10 per cent., which is the company’s highest payment for approximately 20 years. New Zealand Breweries announced a reduction in its dividend rate but the market appeared to have anticipated this decline. In the previous year this company had to draw upon its reserves a little to maintain a 10 per cent, dividend.

The recent activity in the shares of Woolworths, Ltd., serves to recall the remarkable growth in the value of a shareholding in this company since its inception 25 years ago. The figures appended are based on an investment of £lOO m 1924 in the purchase of 100 £1 shares, upon the flotation of the company. In 1928 a bonus issue of three shares for one brought the number of shares up to 400, and, in 1929, 107 shares were purchased at a premium of £2. In 1930 the investor exercised his right to acquire a further 19 shares, issued at a premium of £2 ss, bringing his total holding up to 526 shares. Successive bonus issues of one for one in 1931, three for two in 1934, and one for one in 1936 increased the original holding of 100 shares to 5272, at a total cost of £482 15s. In 1937 there was an issue of shares at a premium of 30s in the proportion of one for 10, making the holdipg 5799 £1 shares, which in 1938 were converted into 5s shares, numbering 23,196, which, plus a bonus issue of one for five, further increased the original 100 shares holding to 27,835. Nine years later by virtue of an issue of one for four shares at par the holding was increased at a cost of £1739 15s by 6959 shares. In 1948 an issue of one for 10, at a premium of 11s, further increased the holding at a cost of £2783 4s by 3479 shares, bringing the total number of shares held up to 38,273, and the total cost thereof, £6323 4s. Taking the Australian market price for the 38,273 shares at 23s a share, the value to-day is £45,210, and the annual dividend at 15 per cent, is £1435 4s 9d. It should be exSlained that in working out the above gures no account has been taken of the number of preference shares to which the shareholder would be entitled. The fate of an investment of £lOO in Woolworths (New Zealand), Ltd., at its inception 20 years ago is, too, well worth pursuing. In 1929, 100 shares were bought at par costing £lOO. Bonus issues of four for five in 1933, three for two in 1935, and two for five in 1936 brought the nominal value of the shareholding up to £630, and an issue of one for 10 at par in the latter year brought the total investment up to £163 for a shareholding of 693. In 1937 there was a further issue of one for two at par. In the same year the shares were converted into 5s units, bringing the total number of shares held to 4156, and a bonus issue of one for 10 made the total holding 4571 shares. Finally, in 1948, there was an issue of one for eight, at a premium of 10s, increasing the shareholding by 571 shares at a cost of £428 ss. Thus, to-day the original shareholding of 100 £1 shares has grown to 5142 5s shares, at a total cost of £937 ss. The present value of 5142 shares at the current market price is approximately £6213 ss, and the annual dividend at 15 per cent., £192 6s 6d. No account has been taken in this analysis of rights to issues or preference shares. The Week’s Transactions The week’s Christchurch transactions at 7431 shares were 1520 shares short of the previous week’s tally. Details are as follows, the figures for the previous week being in parenthesis.—Government securities, £2850 (£3380); bank shares, 170 (15); breweries, 600 (300); frozen meats, 300 (442); gas, 300 (224); insurances, 75 (500); cans and agency, 10 (1325); shipping, 164 575 U 465); miscellaneous, 5 ; miningl 700 (nil): unlistedl The Government stock section was not quite as active as in the previous week. Prices remained firm, however. In the banking section Commercials of Australia improved to sales at 22s 3d, and more were wanted at 22s 7d. Nationals of New Zealand had business, at 58s 9d—up 3d. There was little interest in the remainder of the section. Banins Breweries lost a little ground to sell at 31s 3d, and, later, sellers were prepared to accept 31s. New Zealand Breweries, after sales at 47s 6d, lost ground further to sell at 475. This company announced a reduced dividend during the week—BJ per cent, against 10 per cent, for the previous year. Christchurch Gas contributing shares were .traded at Ils, and more were wanted at this figure. The company’s fully-paids were fractionally firmer with buyers at 255. New Zealand Refrigerating fully-paids were in fair demand in the frozen meats section and had business at 38s. Canterbury Frozen Meat ordinary shares were in demand at £l5 15s. South British Insurance were firm, with transactions at 87s 6d. New Zealand Insurance were also firm and improved to* sales at 945. !n the loans and agency section New Zealand Farmers’ Co-operative issues were all in good demand. Permanent ent shares sold unaltered at £l2

Union Steam preferences confirmed re--2951 easier notations when they sold at

Kaiapoi Woollen ordinaries were firm, buyers and business at 26s 7d. Felt and Textiles rights were traded at 7s 2d but improved to sales at 7s 6d. and subsequent quotations were well over the 8s mark. Felt and Textiles. New Zealand preference shares sold at 24s 6d. Miscellaneous Section u/.? « the • miscellaneous section Broken SJ 1 se ! ling “"altered at 48s 6d, had slightly easier quotations at the close. Wool worths, Ltd., lost ground fractionally in sales at 22s 2d and 22s Id the n C were available at 21s lid. British Tobacco rights were firmer in sales at 5s and 5s 6d, and fullypaids had sales and buyers at 42s 6d Colonial Sugars were disposed of for £53. Macduffs, Ltd., ordinaries advanced to sales and sellers at 10s Bd. Dunlop, New Zealand, preferences were unaltered with business at 20s 6d. Reid Rubbers, which have not been traded locally for some time, sold at 17s, but sales in the north took place as high as 18s. Woolworths, New Zealand, were firmer, with sales at 24s 2d, and later buyers were prepared to pay 24s 3d. Dominion Fertilisers were firmer with business at 28s. Claude Neon New Zealand, did business at 50s—up 3s. Amalgamated Wireless rights advanced 2s 3d to sell at 6s. Consolidated Bricks sold 6d down at Ils. New Zealand Farmers’ Fertilisers found new owners at 30s. Taugo Totaras improved 3d in a sale at In the mining section Mount Morgans lost ground to sell at Bs. Austral-New Zealands were unchanged with business and buyers at ss. Ngaheres were firmer, with sales 5d up at 3s 6d, and more were wanted at this price.

In the unlisted section Beaths Is paids (19s on deposit) sold unaltered at 37s 6d Matea Forests were also unchanged in dealings at 3s. Maling preferences confirmed recent easier quotations to sell 6d down at 20s 6d.