FINANCE & COMMERCE

Press, Volume XCIII, Issue 27961, 7 May 1956, Page 16

FINANCE & COMMERCE

Review Of Week’s Stock Exchange Transactions

(By Our Commercial Editor.) Although no strong upward trend in share prices was apparent in last week s trading on the Christchurch Stock Exchange—rises and falls were about equal— the firm market for Government stock was an encouraging feature. There were steady buyers for nearly all issues, but sellers were scarce throughout the week' For the last three weeks the yields to maturity on all issues of Government stock have" tended to fall. This is a seasonal trend, which normally continues until about August, dnd augers well for the' 1956 national development loan, which is expected to be opened before then.

This year's loan will be considerably larger than last year s—probably about £30.000.000. The terms are expected to be the same as those offered to holders of the £50.000.000 worth of stock which matured this year. The present state of the market shows that even a large loan on such terms would

have a good chance of being filled. Short-term stock is currently returning. with redemption, little more than £4 9s per cent., and medium and longterm issues are returning close to £4 12s 6d per cent. Details of transactions in Christchurch last week, with the figures for the previous week in parenthesis, are as follows: Government stock. £3150 <£22oo>; banks. 900 <64>: breweries. 300 <3oo>; frozen meat. 600 «60>; gas. 800 (3400); insurance. 600 ( 354): loan and agency. 2750 <1061*: woollens. 350 <200); miscelianous. 14.392 <9499»: Australian mining, nil <SOQ»; unlisted. 909 »648>: total. 21.661 (16.286). Yields to final redemption on Government stock issues traded last week were as follows:—3 per cent., 1955-58. £4 Is 2d per cent.; 3J per cent.. 1958. £4 7s 9d per cent.; 4 per cent.. 1954-58. £4 9s 2d per cent.: 3J per cent.. 1959, £4 8s lOd per cent.; 3 per cent.. 1960-63. £4 Ils 3d per cent.; 4 per cent., 1965-66, £4 Ils lid

■ per cent. Bank of New South Wales, cum div., . improved sharply in sales from £27 to I £27 15s; A. and N.Z. Bank were easier in business at 35s 6d and 35s 9d: later buyers offered 365. Commercial of Australia sold unchanged at 14s 6d. New Zealand Breweries were easier in ! business at 39s 6d.

Canterbury Frozen Meal sold at the ; firmer price of £2O 10s. New Zealand Refrigerating were easier in business at 275. but more buyers came in at this ; figure. The previous week’s volume of business in the gas section was not maintained. Christchurch Gas were steady in early business at 24s fid. but a sale on Friday was made at 24s 3d. National Insurance, ex dividend, improved by the amount of the dividend to sell at 27s 9d. South British firmed ;to sell at 78s 6d. New Zealand made a ! good gain in business at 85s 6d. Wright. Stephenson dropped sharply in opening business at 41s. later sales being made at this figure. C.F.C.A. improved to sell at 33s 9d. Two large parcels of Dalgety A. ex div., sold at the lower t figure of 9s 6d. Bonds Hosiers- reappeared on the sales list, changing hands at 17s. Coles firmed during the week, particularly after the announcement of the com-

pany's purchase of a chain of stores in Queensland. Opening Id higher at 13s lOd. the shares were later traded at 14s 3d and 14s 4d. Woolworths were also firmer in business at 15s 6d and 15s Bd. Waltons eased fractionally to sell at 12s. Broken Hill Pty. opened at the lower price of 32s 6d. but closed firmer. Airpoi were unchanged in early business at 9s. A.C.I. had first local business for some time, selling at 40s 6d. Later buvers offered 41s 6d. Colonial Sugar made a cood gain to sell at £32. Oil Search and Taubmans reappeared on the sales list, selling at 12s and Ils 6d respectively. William Cable Holdings improved to sell at 27s Bd. Fletcher Holdinss were easier in a sale at 38s. and later sellers were i prepared to accept less. Golden Bay dropped sharply in first business after the announcement of the new issue, business | being done 4s lower at 25s 6d. Forest Products opened unchanged at 18s 4d. ! later business being done 2d higher. | Tasman confirmed recent lower quotai tions and sales elsewhere in a sale at i 265. Frozen Products, which have not ■ been traded in Christchurch for several months, had business at 7s 6d. M.C.P., sold 3d lower at 5s 3d. Petrous Tile had I first local business this year, selling at i 245. Farmers' Trading made a good gain in light business at 37s 6d. McKenzies improved to sell at 22s 6d. National Electric fell sharply to sell at £6. Watties Canneries were easier in business at 225. D.I.C. were Is ower in sales at 20s 6d. Cyclone Fence and Gate ’’ad first Christchurch business for some time, selling at 30s. Alex. Harvey and Weeks ordinary also reappeared on the sales list, selling at 30s 2d and 30s respectively. Beggs were easier in light trad- • ing at 50s 6d. Booth. Macdonald sold at I the lower figure of 2s 9d. Wilson's Cement recovered to sell at 13s Gd. Whakatane improved in a sale at 22s 9d. Business in preference shares was quiet. Gains were made by New Zealand Farmers’ Co-operative, first preference ■ which sold at 17s i. Hay’s <2osi. and ■ Forest Products (18s 6d. after an early i sale at the unchanged figure of 18s 4d» | Lower prices were realised by Weeks. (19s ;3di. Cyclone «19s9d>. and Aulsebrooks i t I9s ljd>. After losing 3d to sell at 19s 9d. Lane. Walker, Rudkin sold ex div. of 6d at 19s 6d. Kaiapoi Woollens dropped sharply to sell at 235. Christchurch Press sold unchanged at £l3. Hauraki Whaling had first Christchurch business since they be- : ; came fully paid, selling at 7s 6d. SMITHFIELD MEAT MARKET CHILLED BEEF PRICES DROP FURTHER | Sharp reductions in chilled beef ; prices were a notable feature of trad-i ' ing at Smithfield last week. The New ‘Zealand Meat Producers' Board's weekly report on the market says tha' ■ demand was slow for increased sup-! plies and prices were easier. Frozer i beef was quoted lower, but met littk : . inquiry. ■ The trade in frozen lamb was belov | expectations, and values were barel; i maintained. Frozen mutton met ; • limited demand. Wethers, which wen • in short supply, fetched firmer price- j Ewes were unchanged. Sheep Prices for New Zealand meat (ex store.; London, for frozen meat, delivered to i Smithfield for chilled beefi in the week, . ended May 2. with the variation since the previous week, were as follows: j

MINING Snowy River Dredge.—The Snowy River dredge showed a return for the last fortnight of 59 ounces of gold from 38.rw yards of spoil, handled in 22? j hours. Sterling Area Gold And Dollars (N.Z. Press Association —Copyright) LONDON. May 3. The sterling area's gold and dollar rei serves—a barometer of Britain's economic

health—rose by 51.000.000 dollars in April, the Treasury has announced. This is the fourth successive month in which the reserves have shown an increase. The reserves rose by 67.000.000 dollars in March and. including today's figures, have increased by 208.000,000 dollars this year. The total reserves on April 30 stood at 2,328.000.000 dollars. On the provisional figures for April.' Britain had a surplus of £ 14.000.000 with; the European Payments Union-Ahe clear- i ing house for inter-European trade. This; was the first surplus with the union since! last May. and will be due for settlement this month. 75 per cent, in gold or dollars and 25 per cent, by reduction of the debt to the union. During April. 2.(*K>.ono dollars was naic to the creditors of th* European Payments Union in bilateral settlements. Defence aid. estimated at 4.000.000 dollart. was received from the United States during the month.

Sheep Var’n Per lb pence s. d. per lb ' Crossbred Wethers, i Maiden Ewes — Under 481b .. .. 1 21 4-2 49-561b .. ..11 4-1 I 57-641b .. .. 0 11J -i-i j E 65-721b .. .. 0 101 N.C. s Under 481b .. .. 0 10 N.C. ! 49-561b .. ..0 9 N.C. | 57-64 lb ..08 N.C. Canterbury Lamb First Quality— Under 281b .. .. 2 OJ —1 29-35Ib .. .. 1 102 —I 37-421b .. ..19 N.C. 43-50Ib .. ..17 N.C. Seconds— Under 281b .. .. 1 112 —1 29-361b .. 1 10 N.C. Frozen Beef j First Quality— Ox Hinds (145-2101b) 1 1 — ’ ’ Ox fores t142-2101b) 0 91 —2 :Seconds — j Ox hinds .. ..11 4-| Ox fores .. 0 9J —2 Chilled Beef Ox hinds (100-1851b) 1 8 —4 Ox fores (100-185’xb) 0 9j —2