FINANCE AND COMMERCE

Press, Volume XCV, Issue 28181, 21 January 1957, Page 13

FINANCE AND COMMERCE

Review Of Week’s Transactions (By Our Commercial Editor) The year s trading on New Zealand Stock exchanges opened auspiciously last week. Most New Zealand-domiciled securities traded sold well up to 1950 closing prices and the Government stock market appeared firm. Ihe volume of business recorded in Christchurch was onlv slightly below that of the last week before Christinas, and’slightlv above the figure for the first week last year. Australian securities attracted most attention in Christchurch and other New Zealand centres. In sympathy with the Australian market, which opened much firmer and was not checked in its upward trend until Friday, prices for all Australian shares traded in Christchurch last week advanced from their 1956 closing levels.

The confidence of Australian investors in the prospects for 1957 appeared well based last week when the Government announced a considerable improvement in the balance of trade over the last six months, and its decision to relax import restrictions. The improvement was brought about by a reduction in imports and by an improvement in export earnings, mainly from wool. N.Z. Share Values New Zealand's trade balance, too. has improved for the same reasons, but New Zealand investors last week took a more modest view of New Zealand share prospects. Although overseas reserves are nearly 20 per cent, above last year's figure and export earnings are being well maintained. inflation is still a major problem. Higher costs resulting from the November wage increase will squeeze the profit margins of many concerns. Even so. the present trade outlook appears to warrant higher prices for sound securities, than were paid last week. Details of transactions on the Christchurch Stock Exchange last week, with figures for the last week’s trading before Christmas in parenthesis. are as follows: Government stock. £3520 (nil): local body and company stock and debentures. £BOO (nil): banks. 727 (300); breweries. 484 (1161); frozen meat. 200 (1214): gas. nil (200); insurance. 1300 ( 550); loan and agency. 1400 (600); timber, nil (200); woollens. 200 ( 350): miscellaneous. 6058 (9214): Australian mining. 1800 (nil); unlisted, nil (8930); total. 12.169 (14.389). Gilt-edgeds Erratic The Government stock market was • little erratic, but the eight parcels traded fetched prices fairly close to last year’s closing prices, allowing for accrued interest. The steady inquiry for most issues shown la«t week may push prices up this week. Yields on issues traded last week in Christchurch were as follows: Three per cent.. 1957-60. £4 16« Id per cent, and £4 15s 6d per cent.: 3 per cent. 1960-63. £4 16s 8d per cent.; 3 per cent. 1961-63. £4 15s lid per cent.; 32 per cent. 1956. £4 16s 7d per cent. 4 5-8 per cent. 1966-67. £4 16s Od per cent.

Skellerup and Reid Rubber preference were firmer in light business, both at 19s 9d. Hallenstein’s. the only other preference share traded, sold for £5 ss. A.N.Z. Bank. Commercial Bank of Australia. Bank of N.S.W.. and National Bank of Australia sold at the higher prices of 355. 14s 5d (cum div). £29 12s 6d (cum div), and 27s respectively. N.S.W. had later business at £29 15s, with more wanted. Dominion Breweries rights were fairly active. First business was done at 265. 6d below last year's closing price in Christchurch, but the loss was recovered in later business. Ballins eased slightly to sell at 29s 9d. N.Z. Breweries sold unaltered at 435. N.Z. Refrigerating, the only share in this category traded, were steady in light business at 34s 6d. South British Firmer South British Insurance provided the main price change in the insurance section, with a gain of Is in business at 80s. Nev/ Zealand Insurance sold at the steady price of 6d. Standard Insurance eased in sales at 21s 6d. National Mortgage B sold at the steady cum div price of 7s. Bonds Hosiery were steady in business at 16s 3d. Australian shares comprised the bulk of the business in the miscellaneous section. Higher prices were paid for Ampol- (10s 6d). Australian Consolidated Industries (47s and 48s 6d). B.H.P. (375). Wool worths (14s 3d and 14s 4d). Colonia] Sugar £34 12s 6d and £35). Coles (15s 5d and 15s 6d) and Waltons (12s). Burns Philp, in first Christchurch business for some months, changed hands at 425. The Australian mining shares. Oil Search. North Broken Hill and Mount Lyell, which appear infrequently on Christchurch sales lists, all sold at prices above the 1956 closing quotations. Oil Search sold for 9s 3d and the rights for 5s 3d. North Broken Hill for £5 15s 9d, and Mount Lyell for 255. N.Z. Industrials M.K. Manufacturers (9s 9d) and Forest Products (18s» eased slightly. The only New Zealand industrial ordinary share which improved in Christchurch business was Dominion .Builders, which gained 6d to sell at 10s 9d. Steady prices were paid for Fletcher Holdings (30s). Whitcombe and Tombs, new (30s fid), and Woolworths. N.Z. (18s). New Zealand Cement improved on 1956 closing quotations in business at 8s Id. Marlborough Lucerne Meal sold at. 21s in their first Christchurch business.

COMPANY NEWS

WOOLWORTHS, SOUTH AFRICA

Consolidated net profit of Woolworths Holdings. Ltd. (South •Africa), for the year to May 31. 1956. was a record £264.106. against £234.641 the previous rear. The result is reached after tax of £118.287 (£92.132 in 1955).

Net profit of the parent company w r as £239.765 <£183.088). The 6 per cent, preference dividend takes £13.800. unchanged. Ordinary and class A ordinarydividends. raised from 15 per cent, tn 20 per cent., take £ 127.200 <£95.400 last year). A sum of £72.111 (nil in 1955) is transferred to general reserve. Carry - forward is £360.485 (£334.431). The consolidated balance-sheet shows shareholders' funds at £2.413.009 (£2.299.905). Capital is unchanged at £866.000.

Colonial Sugar.—The Colonial Sugar Refining Company. Ltd., will close down its Nausori (Fiji) mill at the end of the 1959 crushing season, according to the "Sydney Morning Herald.” Small crops and rising costs, as well as the price of cane being too high in relation to its sugar content, are forcing the shutdown. The mill, opened in 1880 and designed to crush 170.000 tons of sugar cane a season, has been operating unprofitable* for a number of years, it is stated. Fiji will lose an estimated £250.000 a year as a result of the closure.

LONDON METALS MARKET (N.Z. Press Association—Copyright) LONDON. January 17. London metals market prices today were:— Buyers Sellers a ton. a ton. £ s. d. £ s. d CopperSpot 268 0 0 268 10 0 TinSpot .. 787 0 0 788 0 0 Forward .. 773 0 0 774 0 0 Spot .. 116 10 0 116 15 0 Forward .. 114 10 0 114 15 0 Zinc— Spot .. 103 io o 104 o n Forward 99 0 0 99 5 0 Silver: 6s RJd per oz spot. 6s BJd forward. Gold: £l2 9s per oz. LONDON WOOL FUTURES (N.Z. Press Association—Copyright) LONDON. January 17. London wool terminal market quotations today were:— Buyers Sellers d. per lb. d. per lb. Januarv .. 137? 139 Mav .. 133 J 134 J September .. 130 J 131 December .. 128 J 129 Bradford Wool Tops.—Merinos: 70‘s average. 149 d per lb: 64's average. 140 d; 60’s super. 128 d. Crossbreds: 56's average carded. 103 d per lb: 50’s average carded. 92d; 46’s average carded. 89d.