FINANCE AND COMMERCE

Press, Volume XCV, Issue 28253, 15 April 1957, Page 13

FINANCE AND COMMERCE

Review Of Stock Exchange

(By Our Commercial Editor) In a remarkable week’s trading on New Zealand Stock Exchanges, about 20 of the most frequentlytraded securities last week exceeded their previous highest prices for the year. In most cases these shares are at their highest point for eighteen months or more.

Shares listed in practically every section of the quotation list shared in the general advance. Turnovers throughout New Zealand were high, and the Christchurch total of nearly 29,000 shares was the highest weekly figure for six months. The Auckland sales list on Friday was one of the longest in recent years.

During the week the following shares reached their highest prices for the year: Dominion Breweries, New Zealand Breweries, New Zealand Refrigerating, National Insurance, New Zealand Insurance, National Mortgage A and B, Dalgety A, Wright Stephenson, Tekau Knitwear, Charles Begg, McKenzies, New Zealand Newspapers, Reid Rubber, Woolworths, New Zealand; Bank of New South Wales, Ampol, 8.H.P., Colonial Sugar and G.»J. Coles. The list is probably incomplete, and could certainly be extended if dividends paid since December were added to ex dividend prices. Even the “short list” provides a good indication of xne buying strength exerted throughout the market. Effect of Wool Prices The higher returns from wool sold this season are probably the major influence in the sharemarket at present. This emphasises the dominant part in the New Zealand economy played by the farming sector. The sharemarket is apparently prepared to overlook the slip in prices for dairy produce which will, in some measure, offset the higher wool receipts.

The looming general election—and the prospect of P.A.Y.E. taxation next year—may have cast their shadows before them on the sharemarket. Freer credit, and some relaxation of taxation (particularly on companies) would provide some justification for the present expansive mood of the market.

Details of transactions on the Christchurch Stock Exchange last week, with figures for the previous week in parenthesis, are as follows: Government stock, £8750 (£6350); local body and company debentures and stock, £5OO (£1800); banks, 10 (335); brejveries, 399 (765); frozen meat, 225 (1550); gas, 400 (nil); insurance, 1260 ( 500); loan and agency, 4138 (8346); woollens, 2000 ( 900); miscellaneous, 17.698 (12,732); overseas listings, 250 (nil); Australian mining, 200 (nil); unlisted, 2020 (550); total, 28,645 (25,678).

Yields to maturity on Government stock traded in Christchurch during

the week were as follows: 3 per cent. 1955-58, £4 6s 5d per cent.; 3 per cent. 1956-59, £4 12s 5d per cent., £4 12s 7d per cent.; 4 3-8 per cent. 1959, £4 Ils 5d per cent.; 3§ per cent. 1962, £4 15s 4d per cent.; 3 per cent. 1961-63, £4 14s 9d per cent. Preference Issues Firmer Of the preference issues traded locally, Cyclone (18s 9d), Forest Products (19s), Whakatane Board Mills (19s 9d) and Skellerup (19s) were firmer. Tekau Knitwear, after selling at 19s, slipped back to the previous week’s price of 18s 9d. North Canterbury Frozen Meat (21s), Andrews and Beaven (18s 9d), and CoryWright and Salmon (19s) reappeared on the sales list. Bank of N.S.W. sold unaltered at £3l, but were firmer on closing, quotations. N.Z. Breweries were firmer in business at 45s 3d and 45s 6d, though an intermediate sale was made at 455. Business elsewhere was done at 465. Dominion Breweries sold elsewhere well above the 91s paid in Christchurch last week. Buyers at the close offered s2s.

New Zealand Refrigerating had light business at 395, unchanged. A Dunedin sale was made on Friday at 40s. Canterbury Frozen Meat again advanced on quotation, though no business was recorded. The preference shares had first business for some time, selling at £6 7s 6d.

Gas Shares Weaker Christchurch Gas, fully paid and contributing, were easier in light business at 21s 9d and 16s respectively. Auckland contributing sold at 5s 9d, unchanged. The insurance section was mainly firm. Standard sold unaltered at 21s 3d and National firmed in business at 27s 6d. New Zealand weakened slightly in a sale at 83s 6d, but closed at 84s.

National Mortgage shares were again active, although turnover did not reach the exceptional figure of the previous week. Both A and B shares were steady, selling at 8s and 8s 3d respectively. Each class advanced 3d in Wellington business on Friday. Dalgety A and B. (13s 2d and 12s 7d respectively) were both firmer. Wright, Stephenson made a strong recovery to sell at 40s 6d and 40s 9d.

Bonds were steady in business at 17s. Felt and Textiles, Australia, dropped to sell at 19s 9d and 19s 6d. Tekau were firmer in business at 255.

Australian retailers were active. Coles made further gains to sell at

20s and 20s 2d. Woolworths, after opening business at 16s lOd, had later business at the previous week’s price of 16s 9d. Latest sales were made at 16s ‘Bd to 16s lOd. Waltons, fully paid, after selling unaltered at 14s 9d, sold later at 14s 5d and 14s 6d. The contributing shares eased in business at 12s Bd. B.H.P. (395) and Colonial Sugar (£37 15s) made spectacular gains compared with last Christchurch business. Closing business in B.H.P. was dohe 6d lower. Ampol (8s 8d) were firmer. Commonwealth Mining (9s lid) reappeared on the sales list. Lower prices were accepted for Humes (40s 6d), Burns Philp (50s), and E.Z. Industries (19s 6d). NIZ. Retail Shares Beaths (52s 6d) and Beggs (57s 6d) reappeared on the sales list. Woolworths, N.Z., and McKenzies, made good gains to sell at 20s and 25s respectively. Hays sold unchanged at 23s 3d. K.P. Drugs confirmed the previous week’s higher quotations in sales at £5 Ils 6d. N.Z. Newspapers improved strongly to sell at 345. Reid Rubber (295) were also firmer. Steady prices were paid for N.Z. Industrial Gases (33s 6d), William Cable (245). N.Z. Paper Mills (26s 6d) were easier. Silknit (13s 3d) and Otago Daily Times (50s 6d) reappeared on the sales list, z

Wool worths, South Africa, A shares, had first Christchurch business for some time, selling at 14s 9d. In the unlisted section, John Bulleid (8s), R. and E. Tingey (7s) and Vibrapac Blocks (255) reappeared on the sales list.

Perpetual Trustees.—The directors of the Perpetual Trustees Company, Ltd., will recommend to shareholders at the annual meeting to be held on June 18 that a final dividend of Is a share and a bonus of 6d a share be paid for the year ended March 31, 1957. An interim dividend of 9d a share was paid for the six months ended September 30, 1956, making the dividend for the year 2s 3d a share (unchanged).—(P.A.)