FINANCE & COMMERCE

Press, Volume XCIV, Issue 28153, 17 December 1956, Page 20

FINANCE & COMMERCE

Review Of Week’s Stock Exchange Transactions

(By Our Commercial Editor.) The continued weakness of the gilt-edged market was a feature of last week’s trading on New Zealand Stock Exchanges. Only six parcels of Government stock changed hands in Christchurch, most sellers being reluctant to meet the market. One of the large parcels sold, the 41 per cent. 1961 issue, changed hands at 2s 6d above par and this price included more than 44s of accured interest. At this price, the return, with redemption, to’ the buyer was £4 18s per cent. The market for Government stock, the short-dated issues, has been deteriorating since Government support was withdrawn soon after the opening of the second issue of the Progress Loan. Unless the trend of the last two months is reversed early in the New Year it must soon have serious repercussions in allied markets. Local bodies will find it even more difficult than at present to fill their loans (which carry a maximum interest rate of 4 5/8 per cent.), prices for 5 per cent, preference shares will fall and even a 5J per cent, preference share offer may not be filled.

New Zealand industrial and retail shares tended to weaken during the week and accounted for most of the price falls in Christchurch. Austra-lian-based securities were again keenlysought, as were frozen meat and gas shares. Price movements were equally divided between rises and falls. Turnover was slightly below the weekly average for the year, but it is usual for the volume of business to fall away towards the end of the year. Details of transactions on the Christchurch Stock Exchange last week, with the figure for the previous week in parenthesis, are as follows: Government stock, £6OOO (£200); local body and company stock and debentures, nil (£1400); banks, 115 (415); breweries, 83 (500); frozen meat, 200 (400); gas, 824 (700); insurance, 1150 (1150); loan and agency, 4364 (4700); woollens, 933 (200): miscellaneous. 8618 (14,359); Australian mining, nil (200); unlisted, 1017 (nil)total, 17,304 (22,624). Yields to redemption on Government stock traded in Christchurch last week were as follows:—3 n.c., 1957-60, £4 16s 9d%; 3 p.c., 1959-61, £4 16s 3d%; 41 p.c., 1961. £4 18s%; 3 p.c., 1961-64, £4 16s lld%; 3 p.c., 1962-64, £4 16s 7d%. Preference Shares Active Of the preference shares traded only Mercer Industries, which sold at 21s 3d, improved during the week. Dunlop, N.Z., sold unaltered at 16s. Cyclone at 20s, Commercial Bank of Australia at £6, and N.Z. Farmers’ Co-operative, B preference, at 14s, N.Z. Farmers’ Co-op. A preference, dropped 3d in business at 14s. First local business in the new Wellington Wool cumulative B preference shares was written at 225. Wright, Stephenson and Whakatane preference, neither of which has ’ been traded in Christchurch for some time, changed hands at 21s 3d and 19s 3d respectively. Bank of N.S.W. sold unaltered at £29. Dominion Breweries rights had first business in Christchurch during the week, sales being made at 23s 6d, 25s 3d, and 25s 6d. Early dealings in the north were made at prices up to 27s 9d. Prices have ■oince fallen considerably, though Friday’s business elsewhere was done at prices up to 275. N.Z. Refrigeratign had light business at the higher price of 34s 6d. Christchurch Gas. paid and contributing, firmed during the week. The paid, after early business at 21s 3d, unaltered, sold later at 21s 6d. The contributing opened at the steady price of 16s 6d and also showed a gain of 3d in later business. Auckland Gas, 5s paid, had first local business for some time, selling at 5s 6d. Insurance Shares N.Z. Insurance firmed slightly in sales at 81s 6d. South British dropped sharply to sell at 79s 3d. National Mortgage A shares were fairly active at the lower price of 6s 6d. South Island Finance, a little-traded security, sold for 275. Wright, Stephenson were easier in business at 36s 9d. Bonds Hosiery eased to sell at 16s 3d. Colonial Sugar provided the main price during the week. Opening at

£33 15s—7s 6d above the previous week’s price—.they advanced in later business at £33 17s 6d and £34. Steady prices were paid for Coles (15s). W. R. Carpenter (13s), Toppa Holdings (4s), and Woolworths (13s 7d). Herald and Weekly, selling at 16s 9d, reappeared on the sales list. N.Z. Industrials Variable N.Z. Farmers’ Fertiliser and Whakatane, which gained Is to sell at 34s 6d and 20s, respectively, made the biggest advances among New Zealand industrials. Steady prices were paid for Forest Products (18s 3d, with one sale Id lower), Frozen Products contributing (4s), Donaghy’s (43s 9d), and Fletchers (30s). Dominion Fertiliser changed hands at 43s 9d. Whitcombe and Tombs, new, paid, had first business at 30s 6d. Hauraki Whaling (ss), Berlei Industries (455), N.Z. Newspapers (32s 3d), and Whitcombe and Tombs (31s) each sold at lower prices, as did the retailers' shares—Woolworths, N.Z. (18s), I Hay’s (255), and McKenzies (23s 3d, ex div.). Matea Forests changed hands at 2s 9d, unaltered. E. Reece, in first business for some time, sold at 65.9 d.