COMMERCIAL Quarterly Review Of Stock Exchange

Press, Volume XCVII, Issue 28556, 9 April 1958, Page 15

COMMERCIAL Quarterly Review Of Stock Exchange

LBy Out Commercial Editor 1 Trading on the New Zealand Stock Exchange for the first quarter of 1958, which concluded on March 31, showed surprising variations in prices during the three months. In Christchurch, most shares firmed in price for two-and-a-half months, from the beginning of January to the middle of March, then fell in price until the end of March. Although the two weeks’ fall did not restore the values to those of the start of the year, many stocks lost much ground in this period. While Australian-domiciled shares showed some of the biggest and most rapid variations on the Christchurch Stock Exchange during this period, some New Zealand shares, especially in the breweries and frozen meat sections, featured in unusual fluctuations. In addition to the price variations, there were notable periods of activity and inactivity on ’change, which roughly corresponded with the periods of firming and easing prices respectively.

Trends in the prices of some of the most frequentlytraded shares in the last three months are shown, with their prices a year ago, in the following table:—

Breweries shares were especially variable, with several New Zealand companies announcing new issues, and two proposing a ‘merger. Frozen meat in general ended the quarter on a low note, which perhaps reflects in some measure the falling prices for export lamb since the first export schedule for the current season was published in November.

Stocks of three main insurance companies traded in Christchurch all closed at prices lower than those at the start of the year. Gas, shipping and timber, apart from an occasional sale, were not active in the quarter. Loan and agency were in general inactive, nearly all closing at prices lower than first Christchurch business for the year. Woollens showed fewer variations, mostly maintaining their prices well during the three months.

Banks were at their most active during February. Commercial Bank of Australia, starting the year at 15s 3d in Christchurch, reached a peak of 16s 2d on March 3, but eased to 16s before the end of March. Bank of New South Wales were at lowest Christchurch price for the year at £32 15s on March 27. Breweries

Breweries derived interest from the announcement, on March 11,

of the proposed merger between Ballins and New Zealand Breweries. This announcement was made shortly after the closing of the former company’s new two-for-seven issue of £ 160,000 ordinary shares. Ballins had reached a maximum for the quarter of 41s 6d, cum scrip, on March 6.

After dropping to 345, ex scrip, Ballins firmed upon the announcement of the merger, in anticipation of a possible revaluation of the company’s shares. Sales in Christchurch at 35s 3d on March 10, the day before the announcement, preluded a period of no trading, while investors’ made up their minds. The next sale, at 38s, was made on March 17, but by the end of the month the price had eased to 375.

New Zealand Breweries showed more fluctuation. Starting at 48s 6d for the year, the stock had firmed to 52s by March 4. After March 11, prices of 52s and 53s 6d were paid in Christchurch on March 11 and 12. By March 27, however, the shares had eased to 47s 6d, the lowest point for the year in Christchurch so far. In 1957, New Zealand Breweries shares moved between 43s and 525. Dominion Breweries announced an issue of 10 new ordinary shares for every 118 held, whereupon the price fell from 94s 6d to 88s 6d, and later to 81s. On March 11, the price for this stock in Christchurch had firmed to 90s. Frozen Meat Another section with variations in price was frozen meat, with New Zealand Refrigerating providing most of the interest. The company’s accounts to October 31, 1957, published on January 29, showed a record profit of £274,323. Selling at 45s 6d in Christchurch on January 13, the stock firmed steadily to 48s 6d. then ex dividend 46s 6d, by the end of February. At March 12, the price was still 46s 6d, but eased suddenly and without apparent reason to 425, the lowest price for the quarter, on March 28.

National Insurance eased steadily during the three months from 29s 3d to 27s 6d. New Zealand Insurance and South British al§o eased during the quarter. New Zealand started at 84s, eased to 80s, ex dividend, on January 31, but had recovered to 83s by the middle of March. South British, opening at 89s 9d, reached a lowest price for the quarter of 83s Id on February 28, recovered to 86s on March 12, and finished the quarter easier at 84s 6d. There was little activity in loan and agency during the quarter. Wright, Stephenson was most frequently traded, and followed the general pattern, opening at 40s, rising to a peak of 42s on February 20 then easing to 37s 6d by the end of March.

Woollens were more stable, with most stocks closing at near-peak prices.

New Zealand industrials and retailers were one of the few groups which maintained its rise throughout the quarter. D.I.C. started at 17s 6d, and reached 18s at the end of March. Fletcher Holdings moved between 29s and 29s 9d, and was one of the most frequently-traded of this type of share. Hay’s closed at 25s 6d, only Id below the peak for the period. K.P. Drugs, closing at £4 17s 6d, was one of the few to lose ground during the quarter. New Zealand Forest Products, -opening at 16s 9d, had reached 17s 8d in several sales at the end of March. This stock reached a peak of 18s 6d in New Zealand business last year. Ross and Glendining lost steadily after January 24. The most frequently-traded New Zealand-domiciled share was Woolworths (New Zealand) which opened and closed at 18s 6d. Last year this stock moved between 17s 3d and 19s in New Zealand business. A peak of 19s in Christchurch was paid on February 12, February 17, February 20 and March 18, with only minor variations in between these dates. OVERSEAS EXCHANGES Sydney Key industrials were steady on the Sydney Stock Exchange yesterday. Metals were easier, uraniums firm, textiles steady, oils easier, and loans firm. Oil Search shares steadied slightly after the morning’s big drop, and finished at 2s Id from a low price of Is lOd. Sales.—A.N.Z. Bank, 425; Comm, of Aust., 17s 9d; Bank N.S.W. £35 7sBd; Tooths, 47s 9d; A.W.A., Ils 5d A.C.1., 54s 9d; Bradford Cotton, 365; British Tobacco, 34s IGJd; Broken Hill Pty., 42s 9d; Burns Philp, 67s 3d; Colonial Sugar, £4l; Drug Houses. 32s 3d; Email, 7s; Feltex, 26s 7Jd; General Industries, 19s; G. J. Coles, 19s; H. Jones. 60s 6d: Goldsbrough. Mort, 32s 9d; 1.C.1., 55s 9d; Waltons, 18s; Woolworths, 20s: Mount Isa, 27s 9d; Ampol Exploration, 6s 6d: Ampol Petroleum, 14s 6d; M.K.1., rights, 6s; Oil Search, 2s Id; Peko, 4s 2d; Placer, 85s 6d.

Mar. 28, 1957 s. d. Dec. 30, 1957 s. d. Mar. 31 1958 s. d. A.N.Z. Bank 36 9 36 0 35 6 Dominion Breweries .. 90 0 95 0 85 0 New Zealand Refrigerating .. 39 0 45 6 42 0 New Zealand Insurance 83 6 84 0 80 0 National Mortgage, “A” 7 4 8 1 7 10 Lane, Walker, Rudkin 36 0 41 6 39 6 Forest Products 16 5 17 0 17 8 Tasman 23 0 17 6 17 6 Woolworths (N.Z.) 19 0 18 7 17 9