FINANCE AND COMMERCE

Press, Volume XCV, Issue 28217, 4 March 1957, Page 12

FINANCE AND COMMERCE

Review Of Week’s Transactions

(By Our Commercial Editor)

Transactions made at higher prices equalled the number at unchanged prices in the business recorded last week by the Christchurch Stock Exchange; and rises plus steady prices exceeded falls by six to one.

This indication of market buoyancy was seen only once last year—in mid-July, a month or so before share prices in New Zealand reached their 1956 peak. While Australian-domiciled securities, in sympathy with the firmer trend in Australia, accounted for many of the rises, other sections of the market were mainly firm to firmer.

Particularly notable was the trend in the giltedged section: nine of 11 parcels of Government stock bought in Christchurch will show the purchasers lower yields than if they had bought a week earlier.

As is usual when Australianmarkets are buoyant, Australiandomiciled securities were particularly active in New Zealand last week. Prices paid by New Zealand investors for these securities rose even more than did prices for the same issues in Aus-

tralia, as is shown in the following table comparing price variations between February 22 and March 1 on both sides of the Tasman: — Price Rise in—(Aust.) (N.Z.) d d B.H.P 15 18 B.H.P. rts. ... 7 8 Coles .. .. 4 3 Waltons .. .. 4£ 8 Wool worths .. 3 4 Ampol rts. ..1 1 Exchange Rate Allowance Theoretically, a rise of 5d in Australia in the price of a share should be reflected in a rise of 4d on the New Zealand market. In most of the cases cited above the greater rise occurred on the New Zealand market. The inference is that the New Zealar i market was even more buoyant than the Australian. The higher prices paid for shares in the frozen meat, insurance, arid loan and agency sections and the generally firmer tone of New Zealand industrials were further evidence of confidence in the market. As in Australia, the effect of h : gher wool prices over the last two mont! s or so is spreading through the country's economy. In comparatively few cases, probably, does a woolgrower visit his sharebroker immediately after leaving the wool sale, but a rise in wool prices is regularly followed in New Zealand by a rise in share values. Details of transactions on the Christchurch Stock Exchange last week, with figures for the previous week in parenthesis, are as follow-:

Government stock, £5015 (£10,430); local body and company stock and debentures, nil (£300); banks. 1180 (1195); breweries, 153 (180); frozen meat. 710 (nil); gas, 1000 (100); insurance, 730 (450); loan and agency. 5749 (1500); shipping, 626 (nil)woollens. 100 (400); miscellaneous' 15,197 (16,681); Australian mining, 100 (1600); unlisted, 700 (100); total, 26.245 (22.206).

Yields on Government stock issues traded in Christchurch were as follows:—3 per cent., 1955-58, £3 18s lid per cent.; 3 per cent.. 1956-59. £4 11s 7d per cent, and £4 9s 5d per cent.; 3 per cent., 1957-60, £4 Jss Id per cent.; 3 per cent., 1959-61, £4 14s lOd per cent.; per cent., 1962, £4 16s Id per cent.; 3 per cent . 1960-63, £4 16s lid per cent.; 3 per cent., 1963-65, £4 16s 2d per cent, and £4 15s 8d per cent.; 3 per cent., 1964-66. £4 15s 4d per cent.; 32 per cent., 1974, £4 16s Id per cent. Preference Shares

Of the preference shares which changed hands, Andrews and Beaven (18s 6d), Skellerup (18s 9d), D.I.C. (20s), and William Cable B preference (18s 6d) were steady. Humes, New Zealand (20s), and Union Steam (22s 9d and 22s 7d) were slightly Firmer, and Gadsdens (19s 9d) and Hay’s (20s) eased slightly. C.B.A. ordinary sold unaltered at 14s 2d. National Bank of New Zealand, in first local business of the year, sold for 30s. New Zealand Breweries were steady in light business at 445. Canterbury Frozen Meat had first business of the year, selling at £25 ss. Ex dividend of 255, this represents a gain of 10s over the £26 paid before Christmas. New Zealand Refrigerating were firmer in sales at 375. Christchurch Gas sold at the steady price of 21s. National Insurance were steady in sales at 265. A further gain was made by New Zealand Insurance in

business at 82s 6d. South British were also firmer in business at 82s 3d and 82s 6d. Loan and Agency Active Helped by a considerable turnover in Goldsbrough, Mort rights, turnover in the loan and agency section was the highest since mid-October. Goldsbrough. Mort rights opened in Christchurch 1 at 8s 7d, later business being done at 8s 3d and Bs. Dalgety A were steady in business at 12s 3d, but the B shares rose sharply to sell at 12s 6d. The steady price of 2s Id was paid for New Zealand Guarantee Corporation. Tekau Knitwear, the only woollen company’s shares traded, were steady at 245. Australian rights comprised a fair proportion of the turnover in the miscellaneous section. Broken Hill Proprietary rights advanced sharply early in the week to sell at 16s 7d, 17s. and 17s 6d. Closing business was mainly done at 17s 3d and 17s sd. Ampol rights sold at the higher prices of 3s 6d and 3s 7d. 1.C.1.A.N.Z. rights opened locally at 14s 9d and advanced to sell at 14s lOd and 15s. Australian shares also met a strong demand. Higher prices were paid for Waltons (13s 4d and 13s lid), Broken Hill Proprietary (34s 3d. 35s 4d, and. 35s 6d), Coles (18s 7d ana 18s 9d after early business at 18s 6d. unchanged), and Wool worths (15s IGd, after sales at 15s 6d. unchanged). Colonial Sugar, after gaining 2s 6d to sell at £36 10s, had later business at £36 7s 6d: British Tobacco were steady in a sale at 23s 9d. Humes and Broken Hill South, in first local business for some months, changed hands at 41s and 77s respectively.

Forest Products, Tasman New' Zealand’s giant forest ventures, Forest Products and Tasman, were both firmer in early business at 18s Id and 23s 6d respectively. Later sales of Forest Products were made at 18s. and one parcel changed hands 3d lower. Ross and Glendining provided the main price movement of the week among New Zealand-domiciled shares in the miscellaneous section, with a Is 6d rise to 275. Another notable gain w.-.s made by Donaghys Rope and Twine, which sold at 455. Other gains were made by Cyclone Fence (sold for 30s). McKenzies '23s (id), and Woolworths (18s 9d and 19s). Stead v prices were paid lor M.K. Manufacturers (10s) and Hay’s I (23s 9d). William Cable (25s 6d) and, in the unlisted section. Booth, Macdonald (9d). were easier. Shares which reappeared on the sales list were Wilson's Cement (13s 3d), Farrier Waimak (16s 6d), and Andrews and Beaven (21s).