COMMERCIAL Review Of Week’s Stock Exchange Transactions

Press, Volume XCVII, Issue 28543, 24 March 1958, Page 15

COMMERCIAL Review Of Week’s Stock Exchange Transactions

(By Our Commercial Editor) Prices of stocks traded on the Christchurch Stock Exchange last week were at their weakest since the exchange opened after the Christmas vacation. While the amount of business transacted, especially in Government securities, was well in line with the previous active weeks, price falls outnumbered rises decisively for the first time this year.

New Zealand industrials and retailers were as active as usual, but Australian-Tlomiciled shares were not so frequently traded last week. Loan and agency, timber, and banks were active, while there were several parcels of unlisted stocks traded.

Main interest again centred on the breweries section with Ballins and New Zealand Breweries. whose proposals to merger were announced recently, occupying most attention. Ballins shares were in first business since the announcement nearly two weeks ago, when a parcel changed hands last Monday at 38s, an advance of 2s 9d over the last recorded sale in Christchurch, 35s 3d on March 10. Further sales in Christchurch during the week were also at 38s. Towards the end of the week, however, there were signs of possible falls in price for Ballins shares this week. Last Thursday and Friday sellers offered this stock at 38s, with no buyers accepting. A parcel changed hands at 38s in Dunedin on Friday. N.Z. Breweries Easier

New Zealand Breweries, on the other hand, were easier. Starting the year at 48s 6d, New Zealand Breweries gained steadily to reach a peak of 53s 6d on March 12. A slight easing to 53s was shown in sales in Christchurch on March 13 and 14. The only parcel of this stock to change hands last week in Christchurch did so on Friday at 50s, a fall of 3s. This is the lowest price since February 2. A parcel also changed hands in Wellington on Friday at 50s. The main item of company news during the week was the announcement by Waltons, Australian chain-store retailers with American affiliations, of a higher profit for the half-year ended December 31. The company is continuing to pay its interim dividend at the rate of 15 per cent, for the year There were no dealings in Waltons’ shares in Christchurch during the week. However, a parcel changed hands in Wellington on Friday at 16s 7d, 4d higher than the last recorded Christchurch sale of 16s 3d on March 14.

Another interesting advance among Australian chain stores was that of G. J. Coles. Coles organisation announced, at the end of the previous week, its intention to bid for John Connel Dickins, self-service grocer and merchant of Melbourne. This is interpreted in Australia as a reply to Woolworths’ take-over of the 8.8. C. food store chain previously. ‘‘Pincer Movement” The financial editor of the “Sydney Morning Herald, ’’ commenting upon the latest bid by Coles, says: “The present organisation of food retailing in New South Wales will have to adapt itself to the pressures of a very powerful pincer movement.” He comments that Coles and Woolworths have both decided emphatically to press on with food retailing and that “the corner grocery business is facing a new era.”

New Zealand investors reacted promptly to this expression of confidence on the part of Coles’s directors in extending their chain. In Christchurch the value of Coles’s shares has been rising in recent weeks, reaching a peak of 16s 9d on March 12 and 13. Sales in Christchurch last week were at 16s lOd and 16s lid, which compares with last year’s top price in New Zealand of 15s fid for these 5s shares. Details of transactions in Christchurch last week, with the previous week’s figures in parenthesis, are:— Government stock, £lB,BBO

(£12,650); local body and company debentures, £lOOO (nil); banks, 607 (550); breweries, 1855 (2149); frozen meat, 121 (1130); Insurance, 700 (1300); loan and agency, 150(h (490); shipping, 300 (nil); timber, 1000 (nil): i woollens, 550 (1000); Australiandomiciled. 9540 (13,400); miscellaneous ; New Zealand, 10,373 (11,956); unlisted, 900 (100); totals. 27,246 (32.075). Glt-edged Yields Yields to maturity on Government stock traded in Christchurch last week were:— 3 per cent., 1956-59, £4 14s 3d per cent.; 42 per cent., 1959, £4 17s 4d per cent.; 3? per cent., 1959, £6 Is . 8d per cent. (3 sales); 31 per cent.. 1957-60 £4 19s 3d per cent.; 3 per cent., 1957-60, £4 17s 7d per cent.; 4J per cent., 1961. £4 18s 8d per cent.; 3 per cent., 1959-61, £4 19s 6d per cent.; 32 per cent., 1962. £5 0s 8d per cent.; 3 per cent., 1961-63, £5 Is 8d per cent.; 3 per cent., 1963-65, £5 Os 9d per cent.; 4 per cent., 196566, £5 Is 3d per cent. Andrews and Beaven preference eased 3d to 19s 3d, and Aulsebrooks preference were steady at 19s 6d. Humes (New Zealand) preference, ex dividend, changed hands at 20s 3d. Commercial Bank gained Id to sell at 16s Id early in the week, but later returned to the previous weeks price of 16s. National Bank eased 3s 3d to 245, while Bank of New South Wales was steady at £33. Ballins Breweries changed hanas at 38s early in the week, a gain of 2s 9a on the previous week s closing price. New Zealand Breweries eased 3s to 60s. and Dominion Breweries rights were unchanged at 295. Southland Frozen Meat eased to 61s, but Canterbury Frozen Meat was unchanged at £26 7s 6 °- New Zealand Insurance firmed bd to 83s, with later sales at this price. South British Insurance (84s 6d) and National Insurance (28s) were

easier. . .. r Loan and Agency Active £ In an active loan and agency section Dalgetys were steady at 30s. Wright, Stephenson eased Is 6d to ( 39s 9d, and later eased further to 39s 6d. National Mortgage A Lost 2d to change hands at 7s lOd. r Peninsular and Orient deferred stock was in first Christchurch business for the year at 28s. ; First Christchurch business for the year was done in Taupo Totara Timber at 15s 6d and 15s 3d, with later trading at 15s. Woollens were quiet, with Bonos easing 4d to 17s sd, and Feltex (Australia) losing 9d on most recent Christchurch trading to change hands at 225. Among Australian-domiciled shares Cox Brothers firmed Id to 5s 2d, and later gained a further 2d to sell at 5s 4d. Other AusB tralian shares to change hands at ■ i prices higher than those of previ- ■ ous Christchurch business were liAmpol, new (12s 8d), B.H.P. (38s ■ 6d), G. J. Coles (16s lOd and 16s ■ lid, with later sales at the latter B price), and Woolworths (17s 6d ■ after sales at 16s lid, last week’s ■ closing price). After the payment ■ of their 4.2 d dividend during the ■ week, they firmed a further 2d to ■ 17s Id, closing for the week at 17s Ampol Variable ■ Ajnpol first changed hands at 13s | 7d, Id above the previous week’s

closing price, then settled back to 13s sd. Colonial Sugar (£37 5s and later £37 2s 6d) and Colonial Sugar, Sydney register (£37) were easier. A.W.A. was Id easier at 10s. A.C.I. (£2 10s 6d) was unchanged. 1.C.1. (A.N.Z.) firmed Is 3d to 50s 6d, and closed for the week at 51s. Among New Zealand industrials and retailers, New Zealand Forest Products reached a new height for the year at 17s Bd, after sales at 17s 7d, the previous week’s closing price. New Zealand Newspapers 01s 6d), McKenzies (20s). and "Whitcombe and Tombs (30s 3d) were firmer. Whitcombes had a later sale at 30s, Is above the previous week’s closing price. Hay’s Easier Hay’s (25s 6d), J. J. Niven (475), Giant (13s and 12s 9d), New Zealand Packing (235), and Whakatane (255) 'were easier. The unlisted Kaiapoi was 2s easier in two sales at 26s 6d. Woolworths (New Zealand) began the week at 19s, 3s firmer than the previous week’s closing sales, but later eased again to 18s 9d and 18s Bd. K.P. Drugs,

after sales the previous week at £5 Is, eased a further Is to 97s 6d, after being ex dividend to 2s 5d during the week. Sanford (18s 9d), Henry Berry (245), and the unlisted Nelson Fisheries (265) were unchanged. Tingeys (6s lOd), New Zealand Paper Mills (30s 6d). Apex Ice Cream (60s) and Cyclone, new (34s 6d), were in first Christchurch business for some time. Ross and Glendining reappeared on the Christchurch sales list at 26s 3d. but later in the week eased to 25s 9d. Coulls, Somerville rights firmed 9d to 9s 9d.