COMMERCIAL Review Of Week’s Stock Exchange Transactions

Press, Volume XCVII, Issue 28549, 31 March 1958, Page 12

COMMERCIAL Review Of Week’s Stock Exchange Transactions

The Christchurch Slock Exchange had its second consecutive week of slack trading last week. Each dav of the week was characterised by a small list of sales, and most of them at reduced prices. Only one share ended the week at a higher price. Of last week’s transactions, only two were made at a price higher than that of the immediately previous Christchurch business. A further 23 transactions were made at lower prices, and in 19 cases the price was unchanged from that of most previous local business. There were also some stocks being traded in Christchurch for the first time this year.

With two weeks of lower prices on change, after several extremely buoyant weeks, it is fair to ask whether or not the future will show further falls, or whether the previous position will be restored. It would be unwise to conclude, on the past two weeks' trading, that the long talked-about recession was here. While it is true that prices are lower than at the start of March, and it is possible that they may fall further before a recovery, it is too soon to forecast a recession.

The statement by the Minister of Finance (Mr Nordmeyer) that he anticipated a recession may have some effect upon the trading of shares in the last two weeks. The weakening tendency of the market has been noted throughout New Zealand, and Australian sharemarket indices are also indicative of the fall in prices. The “Sydney Morning Herald”, in its price index for sharemarket

trading, shows that, between March 19 and March 26, the index for banking shares fell from 196.47 to 195.33 (1934=100). Falls in other types of investment in Australia have been even more marked, with the value of shares in retail trading stores falling from 258.63 to 252.74 in the same period, and industrial stocks falling from 213.82' to 210.57.

Large Volume Traded With a large volume of Aus-tralian-domiciled shares traded on the New Zealand market, conditions in Australia have great effect on values in this country. Woolworths were traded in both Sydney and Melbourne at 20s 3d on Friday, March 21, but had fallen in both cities to 19s last Friday.

Woolworths pursued a falling course in Christchurch last week. Closing the previous week at 17s 2d, first sales for the week were at 17s Id and 17s. On Thursday, the price eased to 16s 6d, and fell a further 3d to end the week at 16 s 3d. The highest price paid in New Zealand in 1957 for this 5s share was 15s 6d. In one week, Ampol had eased from its 1958 peak of 13s 7d, which it attained on March 18, to 13s Id last Thursday. Like most Australian - domiciled shares, Ampol has been steadily rising since its first transaction for the year in Christchurch, on January 14, at Ils 9d. Cox brothers, which started the year in Christchurch at 4s lOd, rose to 5s 4d on March 19 and 20. A slight easing to 5s 3d on last Monday prefaced a drop to 4s lOd on Friday, a return to the lowest price of the year. On Thursday, the shares became ex dividend of 2Jd.

Of New Zealand shares, breweries have continued to attract interest, not so much by the volume of their sales but by their erratic price movements. Ballins and New Zealand. Breweries, who announced their intention to merge earlier this month, both featured in price falls, in sympathy with the general tone of the market. Ballins Ease Ballins eased Is each during the week to sell at 375, but New Zealand Breweries made a more spectacular movement. Easing a further 2s 6d, this stock has now lost 6s since March 12, when it reached a peak for the year at 53s 6d. In 1957, it fluctuated between 43s and 525. Investors and shareholders in both these companies do not seem able to determine whether or not there will be many financial advantages in the proposed merger. Changing hands at 42s on Friday. New Zealand Refrigerating has eased 4s 9d in three weeks. The peak price for the year was 46s 9d, reached on March 7, and the most recent sale was the first in this stock since March 12, when the price had eased slightly to 46s 6d.

Details of transactions in Christchurch last week, with the previous week's figures in parenthesis, are:— Government stock, £6625 (£18,860): local body and company debentures, nil (£1000); banks, 130 (607); breweries, 700 (1655); frozen meat, 50 (121); gas, 250 (nil); insurance, nil (700); loan and agency, 800 (1500); shipping, nil (300); timber, 400 (1000); woollens, nil (550); Australian domiciled shares, 5139 (9540); New Zealand miscellaneous, 4333 (10,373); overseas listings, 700 (nil); New Zealand mining, 230 (nil); unlisted, 600 (900): totals, 13,332 (27,246).

Gilt-edged Yields Yields to maturity on Government stock traded in Christchurch last week were:—

3% per cent., 1959, ’£4 13s 9d per cent; 4*,2 per cent., 1961, £4 18s 3d per cent.; 3 3 ,< per cent., 1962, £4 19s 9d per cent (2 sales); 3 per cent., 1964-66, £4 19s 4d per cent. Wright, Stephenson, preference, were in first local business this year at 21s 3d. Dunlop (New Zealand), preference, were 6d easier at 16s, and Whakatane Board Mills, preference, lost 3d to sell at 22s 6d, with further sales during the week at this price. E.. S., and A. Bank was in first Christchurch business for the year at 29s 9d, and Bank of New South Wales eased 5s to change hands at £32 15s.

Ballins Breweries lost Is to fall to 375, and one parcel of New Zealand Breweries changed hands at 47s 6d, the lowest price for the year. New Zealand Refrigerating eased to 425. Wellington Gas returned to the Christchurch sales list with two parcels changing hands during the week at 28s 6d. No insurance shares were traded during the week. Wright, Stephenson Two parcels of Wright, Stephenson changed hands during the week. This share started the year in Christchurch with a sale at 40s on January 31, then rose steadily to reach 42s on February 20. Since that date, the value of the share has fallen steadily in six successive sales at 41s 9d. 41s 3d. 39s 9d. 39s 6d, and, last week, 37s 9d and 37s 6d. South Island Finance was in first local business for the year at 335. Taupo Totara Timber was unchanged at 355. Woollens were not traded during the week. While the volume of business in Australian-domiciled shares fell appreciably, there was still more trading in these stocks than in miscellaneous New Zealand. Ampol eased 4d to 13s Id. Other Australian-domi-ciled shares to ease were Cox Brothers (4s lOd), A.W.A. (9s 8d), Email (6s), G. J. Coles (16s sd). Waltons (16s), Woolworths (16s 3d), and W. R. Carpenter (10s 9d). New Zealand industrials and retailers were quiet. Dunlop (New Zealand) eased to 235, and Woolworths, New Zealand (18s 6d), K.D.V. (12s 9d). and the unlisted Kaiapoi (265) were also easier than in most previous Christchurch business. Whakatane Board Mills eased 3d to 24s 9d. Cyclone, new (34s 6d), Cyclone (355), D.I.C. (18s), the unlisted Nelson Fisheries (265), Vibrapac (295), Henry Berry (245), and New Zealand Paper (30s 6d) were steady. First Business Hallensteins was in first Christchurch business for the year at 38s, and Norvic Shoes returned to the local sales list at 19s. Ross and Glendining was unchanged at 25s 9d. Coulls, Somerville. Wilkie, rights. ; firmed to 10s, after a sale earlier in I the week at 9s 9d. which was the price at the closing of the previous week’s business in Christchurch. New Zealand mining shares made their first appearance on the local sales list this year when a parcel of Waihi Investments changed hands at 2s 6d on Wednesday. Two parcels of Woolworths (South Africa), also in first local business for the year, changed hands at 18s 6d. i