Review Of Week’s Stock Exchange Transactions

Press, Volume XCIII, Issue 28003, 25 June 1956, Page 15

Review Of Week’s Stock Exchange Transactions

Turnover on the Christchurch Stock Exchange last week was boosted by the sale of more than 8000 rights, but a good volume of business in shares listed in all sections except overseas and New Zealand mining was also written. Turnover including loans, debentures and rights reached the highest total for four months

For the first time in five week falls exceeded’rises. A further indication of the instability of the market last week was the lower number of transactions at steady prices. Most of the lower prices were paid for Australian shares; but latest reports on the Australian markets indicate that the recent drift in prices has been halted, temporarily at least.

Government loans tended to weaken but preference shares were mainly firm. The frozen meat section was again very stfong. Several insurance issues, after slipping sharply, recovered at the end of the week.

Most of the rights traded were those to the Woolworths issue, which were firm throughout the week. Farmers’ CO-operative ordinary and preference rights eased as the week progressed. As dividends paid on these two classes of shares have been the same in recent years, the market has ignored the legal distinction between the shares in evaluating the rights. Golden Bay rights finished the week 3d above the previous week s closing- price.

Overseas Markets Towards the end of the week some < notable gains were made in Aus- < tralia by several market leaders. The : resumption of unit trust buying last l week is said to have been an important factor in the revival of Australian prices. “There seems little news offering to suggest a strong . renewal of confidence,” says the “Australian Financial Review. “Credit is, if anything, becoming < tighter, and this factor is the investor’s greatest problems.’ Wall street has been remarkably steady since the general decline in prices last month was arrested, and latest Dow Jones indices show tne market to be quiet but firm. Prices for shares in London, on the other hand, have been edging downward for the last two months an<i y“ e movement show's no sign of being halted - rhrict Details of transactions on the Christchurch Stock Exchange last week, witn the figures for the previous week in parenthesis. are as f oll ,°ws:— Government stock. £ 8 n local body and company debentures, £ooo (£2000): banks, 580 (12’5); breweries. 940 (366); frozen meat, 700 (424); gas, 91/ (1400); insurance. 1650 (700); loan and agency. 2340 (2724); shipping 200 (ml . timber, 150 (nil); woollens 1400 (1184) miscellaneous. 18,045 (12,024), ? v ® listings, nil (800); Austrahan mining. 300 (nil), unlisted 600 (100); total. 2/,822 <2 Al? 6 but two of the Government stock issues traded in Christchurch > a ?t showed a higher yield to redemption than in the previous week. Yields ot issues traded weie as follows: . 3 per cent. 1955-53. £4 Is lid per cent 3 per cent. 1957-60. £4 10s 6d per cent and £4 10s 7d per cent.: 3 per cent. 196062. £4 12s 9d per eent.: 3 per cent U6O63. £4 12s lid per cent, and £4 13s oci. 3 per cent. 1963-65. £4 12s lOd per cent.; 3 per cent. 1964-66, £4 12s lOd per cent ; 4 per cent. 1965-66. £4 13s Id per cent William Cable C preferences, in fiist local business for five weeks, gained is to sell at 21s. Union Steam preference were also firmer in business at 22s Jd Whakatane preference sold 3d lower at 20s 9d. Other preference issues traded were Cbmmerdial Bank of Australia (at £5 10s) and Williamson Jeffery (18s 9a) National Bank of N.Z. were firmer in business at 27s 6d. Bank of N-S-W. improved to sell at £27 12s 6d and £2B. Breweries Shares N.Z. Breweries eased fractionally to sell at 40s Id. but later sales were made al 40s 2d and 40s 3d. Dominion Breweries were not traded locally until Friday, when a sale was made at 90s 3d. This was 3s 3d above the price paid in Christchurch the previous week, but 3s 3d below opening business elsewhere last week. N.Z. Refrieerating opened with a good gain in business at 29s 6d, later sales being made at 30s. Gear Meat were unchanged in a sale at 245. Christchurch Gas eased during the week in sales at 23s lid. 23s 9d and 23s 6d. South British Insurance slipped sharply in opening business at 81s N.Z. Insurance were also well marked down in sales at 87s 6d. but recovered well to close at 88s 6d. National eased to sell at 26s 6d. N.Z. Farmers - Co-operative rights were fairlv active during the week. Both the B preference and the ordinary rights had first business at the steady price of 3s fid. but later sales were made at 3s 3d Closing business in both classes was written at 3s. Dalgety A were fractionally weaker in a sale at 9s 8d Batholomew Timber. a little-traded stock, changed hands for 395. Felt and Textiles. Australia, had business at the lower price of 19s 9d. Bond's Hosiery changed hands at 16s 6d, unaltered. Tekau had light business at the unaltered price of 24s Australian Issues Active Turnover of Woolworth’s rights exceeded 5200. Business was written at 8s 9d and ks lOd, with buyers unsatisfied al the higher figure. The ordinary shares also had a large turnover, all business being done at the lower figure of 13s 4d First business in Coles for the week was done on Friday, when five sales were made at the fractionally higher figure of 14s and one at 13s lid -Waltons had light business at the reduced price of 10s 9d but later recovered half the loss in a sale at Ils. A.C.I. receded further to sell at 40s 9d, but improved strongly on quotation. latest buvers offering 42s 7d. Ampol was marked down to sell at 8s 3d. W R. Carnenter made a good gain in a sale at 13s 9d Electrolytic Zinc had first local business for three weeks, at the lower price of 355. Golden Bay Cement opened strongly to sell at 25s 9d. The rights, rising 6d in

sympathy, had opening business at 3s. but later sales were made 3d lower. Hauraki Whaling opened 4d higher in business at 8s Id, and later sold at 8s 3d Tasman made a modest gain to sell at 26s 3d. Forest Products eased to sell at 18s lOd. Fletcher Holdings had ex div business, selling for 375. Donaghy’s Rope dronped slightly more than the amount of the dividend in first eX dividend business at 42s 6d. Wilson’s Cement had first ex div business fit 13s 6d and at 13s 7d Kempthorne, Prosser’s returned to the sales list, selling for £5 14s.

A small parcel of K.D.V. rights sold for Is. M.K. Manufacturers, selling at Ils. reappeared on the sales list. Norvic Shoes had first business for some time, selling at 12s fid. Tio Top Ice sold at 14s 3d after a long absence from the sales list. Later buyers offered 14s Bd. Truth were steady in business at 38s Otago Daily Times sold unchanged at 51s 6d D.I C sold fractionally lower at 19s 9d. Mount. Lyell were steady in a sale at 225. Booth, Macdonald had business at the unchanged figure of Is 7d, after Christchurch sellers had droped their quotations as low r as lid. N.Z. ‘Motor Bodies made a good gain to sell at 40s.