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FINANCE & COMMERCE

Review Of Year’s Stock Exchange Transactions (By Our Commercial Editor.) This year’s business on New Zealand Stock Exchanges was notable for a high level of activity in shares, a large number of new issues of capital, and for higher prices for most shares, particularly those in the banking, insurance and allied sections. It was also notable for the higher yields and reduced turnover of Government stock.

Share prices in 1955 and T 956 are traced in the graph below. Based on the index figures of share prices (“all groups”) given in the Abstract of Statistics, the graph shows that, except at the end of August, prices this year have been consistently above last year’s. This over-all trend is the result of a large increase in prices tor shares in financial concerns (notably banks and insurance companies) and of a more modest increase in industrial companies.

On the Christchurch Stock Exchange, turnover of shares and rights this year exceeded last year's figures by 13 per cent, in number, increases being shown in each quarter except the first. Turnover of Government stock and local body and company debentures and stock, however, fell 17 per cent. The biggest drop was shown in the figures for the first quarter. Details are as follows:

Govt. Shares Loc. body Rights 1956 1955 1956 1955 (£000) <000)

Share turnover in Auckland this year declined 2.4 per cent, to 1.938,000 shares.- according to figures kept by the “New Zealand Herald.” Turnover of Government loans and local body and commercial debentures totalled £ 1,236,000. a drop of 29.4 per cent, from the 1955 figure. “Repercussions of the credit squeeze were reflected in practically every New Zealand company’s balance-sheet and accounts during 1956, particularly those issued toward the end of the year which covered a full year’s trading under ‘squeeze’ conditions,” says the “New Zealand Herald.” Building, Retailing Affected “Companies connected with the building trade, including nearly all the timber companies, were adversely affected by the general slowing-up in house construction. Retailers, particularly those selling goods under hire-purchase schemes, generally reported lower earnings because, even if sales had been maintained, higher costs caused a reduction in profit margins. “The Dominion’s textile industry, in addition to feeling the effects of the credit squeeze and rising costs, was faced by strong competition from imported goods and practically all companies in this group reported lower net earnings and reduced dividend payments to shareholders,” the paper says. Trends Since September Trends in prices of some of the most frequently-traded shares in the last three months are shown in the following table:—

Prices Ease at Close Price falls outnumbered rises by more than two to one in Christchurch last week. Share turnover was well maintained. but no sales in Government stock or local body issues were recorded. Details were as follows: Government, nil (£6OOO in the previous week): banks, 300 (115); breweries. 1161 (83); frozen meat. 1214 ( 200); gas. 200 (824); insurance. 550 (1150); loan and agency, 600 (4364); timber. 200 (nil): woollens. 350 (933): miscellaneous, 9214 (8618); unlisted. 600 (1017); total. 14,387 (17.304). Preference shares were again active. Steady prices were paid for Commercial Bank (£6). Whakatane (19s 3d) and Cyclone (20s). Preference shares which reappeared on the sales list were Weeks (which sold at 19s 3d) and Canterbury Frozen Meat (£6 7s 6d). Commercial Bank, ordinaries, eased fractionally to sell at 14s 2d. Breweries Rights Ease A modest turnover of Dominion Breweries rights was recorded. Opening at the higher price of 275. the rights eased slightly in later business at 26s 9d and 26s 6d. with latest business at the lower figure. Closing business elsewhere was written at 25s 6d. N.Z. Breweries sold at the lower price of 435. N.Z. Refrigerating sold at 34s 6d, unchanged. Southland Frozen Meat, the only share in this section which has shown any substantial decline in the last few months, sold at the lower prices ot 70s 6d and 70s. Christchurch Gas sold unaltered at 21s 6d Wellington Gas eased in light business at 35s 6d. Insurance Shares South British Insurance were again weaker, in business at 78s 6d and 795. N.Z. Insurance sold unaltered at 81s 6d. N.Z. Guarantee, in their first local business for some time, sold for Is lOd. Wright, Stephenson improved to sell at 375. Taupo Totara were easier in a sale at 40s. Lane. Walker Rudkin Industries, the only woollen company shares traded, were slightly weaker in business at 365. Australian shares were again comparatively inactive. Woolworths opened at 13s 7d (unchanged) and at 13s Bd. No later business was recorded, but quotations appeared to confirm the higher price. B.HP. gained slightly in sales at 365. Ampol had light business at 9s 9d. before the announcement of the new issue. After the announcement, local sales were made at 10s Id. In the miscellaneous section. New Zea-land-domiciled shares which eased during the week were N.Z. Newspapers (selling at 31s 9d). Forest Products (18s 2d) and Cyclone contributing (13s). Steady prices were paid for Frozen Products, contributing (4s). and Berlei Industries (455). Shares which reappeared on the sales list were N.Z. Industrial Gases (32s 6d). Farrier Waimak (I7s 6d) and J. Wattie Canneries (22s 6d). Prudential Building. a little-traded unlisted security, sold for 17s. Buntings were steady in business at 30s 6d.

Petrol Rationing- Example.— Queen Juliana is setting a Royal example in petrol-rationed Holland. She has put away her limousines and brought out her bicycle. It has been in store since the last time petrol was rationed. But this does not mean that protocol and ceremony go by the board. When the Queen cycles the two miles to church on -Sunday, her lady-in-waiting will go too—pedalling beside her. —The Hague. December 22.

1st quarter ..27 285 214 217 2nd quarter .. 88 128 254 244 3rd quarter .. 142 146 298 251 4th quarter .. 114 141 259 191 Totals . . 371 700 1024 903

A.N.Z. Bank .... Sept. 30 Dec. 21 34 d 6 s 34 d 0 Dom. Brew 97 0 87 6* N.Z. Refrig 32 5 34 6 N.Z. Insur 81 3 81 6 Nat. Mort. A 6 6 6 10 Lane. Walker 36 9 36 0 B.H.P 36 0 36 0 Forest Products . 17 7 18 2 Tasman •Ex Rights. 22 0 22 9

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Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/CHP19561224.2.136

Bibliographic details

Press, Volume XCIV, Issue 28159, 24 December 1956, Page 14

Word Count
1,041

FINANCE & COMMERCE Press, Volume XCIV, Issue 28159, 24 December 1956, Page 14

FINANCE & COMMERCE Press, Volume XCIV, Issue 28159, 24 December 1956, Page 14