FINANCE AND COMMERCE

Press, Volume XCIV, Issue 28129, 19 November 1956, Page 15

FINANCE AND COMMERCE

Review Of Week’s Stock Exchange Transactions

(By Our Commercial Editor.)

The international tension has so far had little effect cn the share market in New Zealand. Leading insurance shares weakened two weeks ago but have since recovered strongly, and increased turnovers bespeak a return of confidence which is not matched overseas.

Share prices in London fell last week as a result of uneasiness over the Suez crisis. The Financial limes” index of industrial ordinary shares on Wednesday, at 168.13, reached its lowest level since August 25, 1953. Government securities on the same day dropped to a record low figure of 82.74.

Share markets in Australia reported lower turnovers, with a weakening tendency. The Dow Jones index of industrial common stocks traded in New York dropped 11 points in eight days.

An Australian conversion loan offered in London since the Middle East trouble arose met with little success, about two-thirds of the stock being left with the underwriters. In exchange for maturing stock, holders were offered £7m of 1970-72 5J per cent, stock. The response was described by one observer as being “better than expected” in the prevailing conditions of uncertainty. The timing of the New Zealand loan of £sm, which was placed on the London market early in September, has proved to be even more opportune than it appeared at the time. Investors were offered an effective interest rate of 5J per cent., with a 22-year term. Trends in Company Profits Two local companies whose accounts

were reviewed last week —Andrews and Beaven and North Canterbury Freezing—reported higher pronts. Three other large concerns, National Insurance, J. Wattie Canneries and Petrous Tile, showed declines from last year’s figures, and the William Cable interim dividend was reduced. The retail trade figures for tne third quarter, published during the week, show that retailers recent turnover figures are barely matching last year’s. Naturally there are variations above and below the common trend among the 11 store types surveyed, but these variations are less than a year ago. The maidbet & present cautious view of retail snaiec appears justified from these figures. Details of transactions on the ennstchurch Stock Exchange last week, with figures for the previous week in parenthesis, are as follows: zx-qonm. Government stock, £16,960 (£3800), local body and company debentures and stock, £lOOO (£600); banks. Ila <132>1 breweries, 748 (nil); building societies, 100 (nil); frozen meat, 1115 ( 300); insurance, 875 (nil); loan and agency, 5054 (2657); shipping, 325 (924); woollens, 147 b (1500); miscellaneous, 11,965 (5568); unlisted, 800 (100); total, 22,573 (11,181). Government Stock Weak. The market for Government stock was again weak, though active. Ten issues were traded in Christchurch, all but two showing a higher redemption yield than was obtainable a week earlier. Yields were as follows:—3 per cent., 1955-58, £4 0s 8d per cent.; 3 per cent., 1957-60, £4 Ils per cent.; 32 p.c., 1962, £4 13s 4d per cent.; 3 p.c.. 1961-63. £4 15s 5d per cent.; 3 p.c.. 1961-64, £4 14s lOd per cent.; 3 p.c.. 1962-64. £4 15s 4d per cent, and £4 15s lOd per cent.; 3 p.c., 1963-65 £4 14s lOd per cent.; 3 p.c., 1963-66, £4 14s lOd per cent.; 32 p.c., 1956-66, £4 14s 9d per cent.; 3% p.c., 1974, £4 14s 7d per Preference shares which sold unaltered were: Andrews and Beaven (20s), Lane, Walker, Rudkin (20s), and J. Mercer Industries (20s lid). North Canterbury

Frozen Meat had first business for some time, selling at 225. N.Z. Farmers' Cooperative first preference (14s 6d). A preference (14s 3d), and B preference (14s) each sold at slightly higher figures. Aulsebrooks made a good gain to sell at 18s 3d. Hay's sold 3d lower at 20s. Fletchers C preference, in first business locally for some time, sold at 18s 9d. Rights to the Wellington Woollen participating preference issue had first local dealings, selling at Is 3d. Commercial Bank of Australia eased to sell at 14s 4d. Bank of N.S.W. had first ex dividend business in Christchurch at £29. compared with last business at £2» 7s 6d. cum div. of 9s. Business in N.Z. Breweries was done at the higher prices of 44s 3d and 44s 2d. Dominion Breweries sold unaltered at JXis 6d. In their first local business for some months, Mutual Benefit sold at 27s 6d. Frozen Meat Section The first check for several months to the upward trend in N.Z. Refrigerating shares came on Tuesday, when sales were made at the slightly lower price of 34s 3d. Later business was done at this figure. Canterbury Frozen Meat reached a new peak of £25 15s for the year—a price only 5s below last year’s peak, and since then a one-for-one issue at a £5 premium has been made. Standard Insurance and National Insurance sold unaltered at 22s and 28s respectively.

The loan and agency section was again active. National Mortgage “paid allotments" —which can be described as new issue A shares for which certificates have not been issued—had first local business at 6s B£d. Closing quotations were easier. This company’s new B shares sold unaltered at 7s. Wright, Stephenson, paid, sold at the steady price of 37s and the contributing had first local dealings, at 20s. N,.Z. Farmers’ Co-operative, ordinary, had first local business for some time, at 14s Id. In their first local sales for several months, Huddart Parker sold for 38s. Lane, Walker, Rudkin, ordinary, sold at 275, unaltered. Tekau, in their first local sale for some time, sold for 23s 6d. Bonds were steady in light business at 16s 6d.

Gains by Australian Shares Australian shares in the miscellaneous section, which improved, were: B.H.P. (35s 3d), Coles (14s lOd), Colonial Sugar (£32 ss). and A.C.I. (43s 7d). Ampol were steady in cum div. business at Ils. Woolworths, after improving fractionally in business at 13s 7d, sold later at 13s 6d. Waltons sold at the steady price of 11s 2d. W. R. Carpenter were fractionally easier in a sale at 13s. Turnover of New Zealand industrials was light. William Cable Holdings eased in business at 25s 3d and 255. Whakatane, ordinary, also eased to sell at 19s. J. J. Niven sold 3d down at 445. Higher prices were paid for K.P. Drugs (£6 0s 6_d) and Ross and Glendining (25s and 25s 3d). Frozen Products, contributing (4s), ana M.C.P. (5s 3d) had first local business for some time. Among the retailers. McKenzies improved to sell at 245, Cum div. Whitcombs and Tombs and Beaths sold at 30s and 39s respectively.

SHAREMARKET INDICES

Clyde Engineering.— lnterim dividends of 3 per cent, ordinary and 2i per cent, preference are payable on December 17, ex November 30. Total ordinary.. payment last year was 7£ per cent.—(P.A.) Brown and Dureau.— Brown and Dureau, Ltd., importer and exporter, felt that a payment of preference dividend arrears should be possible at the next annual meeting, if the present trend continued throughout the current year, the chairman's report stated. (No dividend has been paid on 5 per cent, preference capital for 3J years. Arrears at June amounted to £31.500.) The financial position and liquidity had improved, mainly through the sale of certain fixed assets and investments. Shareholders’ funds rose £62,838 and total liabilities were lower by £313,056.

COMPANY NEWS

FLETCHER SUBSIDIARIES’ CAPITAL RAISED "*The Press” Special Service AUCKLAND. November 18 The authorised capital of four of the main subsidiaries of Fletcher Holdings. Ltd., has been increased. A company spokesman said yesterday that the increases followed the recent reorganisation of the subsidiaries and brought th?ir capital more into line with the assets involved. Details are:— Fletcher Construction Company, Ltd.: Capital increased from £150.060 to £500,000 by the creation of 350.000 ordinary £l-shares. Fletcher Trust and Investment Company, Ltd.: From £lOO,OOO to £1.000.000 by the creation of 900,000 ordinary £1 shares. Fletcher Timber Company, Ltd.: From £40.000 to £250,000 by the creation of 210.000 ordinary .£1 snares. Fletcher Trust and Investment Company. Ltd.: From £lO.OOO to £250.000 by the creation of 240,000 ordinary £1 shares.

WM. CABLE INTERIM DIVIDEND REDUCED

William Cable Holdings. Ltd., has reduced its interim dividend payment to 3 per cent. In each of the last two years there has been an interim payment of 4 per cent., followed by a final of 4 per cent. In announcing the dividend, the company stated that some sections of the group were experiencing reduced revenue as a result of the current credit squeeze and factors outside the company's control. "The present forecast for the balance of the year is reasonably satisfactory,” said the company, “and the group is fortunate in having large longterm contracts in hand. “The progress on several of these, however, has recently been delayed through clients having had to redesign important features of their original proposals. The anticipated revenue from these large contracts this year may be affected for this reason, and in the meantime the directors believe it wise to. take a conservative view of the estimates for the balance of the year." Tooth and Company.—A final dividend of 6 per cent., making 12 per cent, fnr the year, is recommended. The dividend is payable on December 19, ex November 19.—(P.A.) Alex Harvey.—lnterim dividends of 5 per cent, ordinary and 2} per cent, preference are payable on November 30. ex November 26. Total ordinary payments last year were 12J per cent.—(P.A ) Holeproof Industries.—The interim preference payrpent of 2J per cent, will be made on December 10. ex December 3. —(P.A.) National Bank Dividend.—The general manager of the National Bank of New Zealand. Ltd., has received cablsd advice from the board of directors in London, authorising payment of an interim dividend of 4 per cent., less United Kingdom income tax at 8s 6d in the £, for the year ending March 31, 1957. The interim dividend is payable in New Zealand on January 15, 1957, at the air-mail buying rate of exchange for demand drafts on London current at the date of negotiation of the dividend warrants.—(P.A.)

MINING (From Our Own Reporter) GREYMOUTH, November 16. GOLD MINES OF N.Z. Returns from the two dredges operated by Gold Mines of Neu r Zealand, Ltd., for the half-month ended November 15 were as follows: Arahura Dredge.—A total of 601 ounces of gold won from 80,000 yards of spoil, handled in 207 hours. Kaniere Dredge.—A total of 299 ounces of gold won from 164,000 yards of spoil, handled in 259 hours. SNOWY RIVER DREDGE The return from the Snowy River dredge, operated by the Snowy River Gold Dredging Company, for the last fortnight was 340 ounces of gold from 49,000 yards of spoil, handled in 261 hours.

Comparative indices are:— New York. Dow Jones. Rails. Indus. Shares sold Nov. 30 166.65 483.26 2,900,000 Dec. 30 163.29 488.40 2,820,000 Jan. 30 155.10 467.50 1,830,000 Feb. 29 159.62 483.65 3,900,000 March 29 171.82 511.79 3,480,000 April 30 176.63 516.12 2,730,000 May 31 165.10 478.05 2,020,000 June 28 166.84 492.50 1.900,000 July 31 170.65 517.81 2,520,000 August 30 160.65 502.04 1,620,000 Sept. 28 154.01 475.25 1,720,000 Oct. 31 155.93 479.85 2,280,000 Nov. 13 158.11 486.69 2.140,000 Nov. 14 157.00 482.36 2.280,000 Nov. 15 156.73 480.20 2,210,000 London.—Financial Times: Indus, ord. (1936 equals equals 100) 00): Govt, and gold (1929 Indus, ord. Govt. Gold. Nov. 30 . 190.3 90.78 76.10 Dec. 12 . 198.1. 90.53 •87.1 Jan. 4 . 203.4 90.16 186.7 Jan.' 31 . 186.4 88.70 82.5 Feb. 28 . 177.9 88.15 90.6 March 29 . 180.1 86.50 85.5 April 30 . 190.7 87.80 81.4 May 31 . 181.1 85.39 78.1 June 29 . 174.4 84.57 81.7 July 31 . 182.8 84.04 80.3 August 31 . 182.9 84.72 80.6 Sept. 28 . 181.2 83.72 78.7 Oct. 31 . 175.1 84.10 72.7 Nov. 13 . 170.0 83.20 72.4 Nov. 14 . 168.1 82.74 73.5 Nov. 15 . 169.0 83.90 74.4 •New senes begins. tEx dividend (equals 88.1 cum div.).