COMMERCIAL Review Of Week’s Stock Exchange Transactions

Press, Volume XCVII, Issue 28607, 9 June 1958, Page 14

COMMERCIAL Review Of Week’s Stock Exchange Transactions

The Christchurch Stock Exchange had another week of quiet business last week, when 15,328 shares changed hands. Although not high by the standards of the weeks in March and earlier, this was encouraging for a four-day week. Australiandomiciled shares were quieter than usual, but there was activity in Government stock.. The value of Government stock traded on Wednesday (£5555) has been exceeded only on one day since March 21.

Prices were firmer, continuing the trend of the last two weeks. There were 18 price rises recorded, and only 5 falls. In the last three, weeks, the figures have been 73 rises and 29 falls. '

The main item of interest among New Zealand companies last week was perhaps from McKenzies, Ltd.,, which announced an increased profit of for the year ended March 31. This compares with the profit of £157,731 for the previous year. The company’s dividend on ordinary shares is this year 12J per cent., which may be regarded as thoroughly, satisfactory on a capital recently increased by a one-for-two scrip issue. Last year’s dividend, on the lesser capital, was 17| per cent. . A further step in the proposed merger between Ballins Breweries and New Zealand Breweries was taken on Tuesday with the announcement of an extraordinary general meeting of shareholders in the former company, to be held on June 24, The, meeting will be asked to approve the proposals of the directors that the company cease brewing and that the assets of the brewery section of the company’s business be sold. The meeting win also be asked to approve a special resolution concerning a change in the company’s articles of association.

The purpose of this change is to bring the articles regarding directors into line With the requirements of table A of the Companies Act, 1955. It is required to enable the directors of Ballins to Complete the negotia-

tions with New Zealand Breweries concerning the sale of Ballins’ brewing business. It will also permit these directors to act as directors of the new wine and spirit companies in Christchurch and Timaru, which will be operated by the two companies together. Wall Street If there are any signs of recession in the United States, news of it has apparently not reached the Wall Street investors. Last week the sharemarket indices for both railways and industrial stocks on Wall Street reached their peak for this year. On Thursday, the index for railway stocks stood at 117.45, and the highest point in 1958 to date for industrial stocks is the 468.58 on Wednesday. It has been said before that these figures are not related to any base year, as are most indices of this type. They instead indicate the actual average dollar value per share. Thus, on Thursday, the index of 117.45 represents the average value of 20 railroad stocks. Similarly, the Thursday figure of 468.55 for industrials is the average value of 30 industrial stocks. .The lowest values recorded this year in these two catagories are 99.89 for tailways (on January 2) and 436.89 for industrial stocks (on February 25). Pre-war figures for these two types, of stock, calculated upon the same basis, were given by a member of the staff of the Ameri? can Embassy in Wellington two years ago. In this table, the figures for each year are an average of the daily closing figures. They are:

Post-war trends are shown in the following table, which gives the indices for the last working day of each year:—

♦ June 5 The highest point reached since the industrial series was begun was 52L.-05. on April 5, 1956. Details of transactions in Christchurch last week, with the previous week's figures in parentheses, are:— Government stock; £5940 (£4250); local bodv and company debentures, nil (£1500); banks. 73 (89); breweries, 1830 (2160); frozen meat, ino (?6 n )- gas. nil (300): insurance 650 (850); loan .and agehey. 002 (868): building societies. 130 (nil): shinping, nil (500): woollens, 100 (*’00); Australian-domiciled. 4560 (7735); New Zealand industrials and retailers. 7133 (7282); overseas listings. 150 (nil); totals, 15,328 (21.377). Gilt-edged Yields Yields to maturity on Government stock traded in Christchurch last week were:— 3 per cent.. 1P57-60, £4 18s; 3*,’4 ner cent., 1957-60. £4 16s 9d per cent.: 44 per cent., 1961, £4 17s lOd ner cent; per cent., 1962, £4 18s 5d prr cent.: 4 5-R ner cent., 1966-67, £4 19s 3d per cent. New Zealand ’’orest Products preference Zyzere 8d firmer at 20s, and Commercial Bank of Australia orewere unchanged at £6 4s Commercial Banking Company of Svdney rights were 6d easier at £5 12s. Bank of New South Wales were 2s «d firmer at £3l 12s 6d. Ballins Breweries recovered Id tn change hands at 33s 7d earlv in the week, with a further sale at ■Ms on Friday. New Zealand Breweries’ first sale for the • week was at 46s f*d (unchaneedl but this stock firmed la*er to cb-nge hands at 4Fs Bd, 46s 9d and 48s. United Buildinc Society was unchanged at 16s 9d. Insurance New Zealand Insurance firmed Ijs 3d to 78s 6d in sales on Tuesday and Wednesday, and sold again at the same price on Thursday. South British Insurance first sold for the week at *n unchanged 78s 6d. then fell to 77s 9d before reaching 78s 6d aeain on Friday. Canterbury Farmers’ Cn-ooerative Association were in first local business for three months when a parcel changed hands at 58s, 8d

firmer than the last local sale on March 6. Wright, Stephenson were unchanged at 375. At 225, Feltex (Australia) were 3d easier than previously in Christchurch trading. Canterbury Frozen Meat were 6d firmer at 41s 6d. Ampol eased 4d to change hands at 12s. Australian Consolidated Industries were steady in two sales during the week at 47s 9d. Cox Brothers gained Id to sell at ss. G. J. Coles firmed 2d to 16s 3d on Wednesday, slipped to 16s Id on Thursday and sold at 16s 2d and 16s 3d on Friday. Morts Dock were Is cheaper* at 9s Cd. Waltons firmed 3d to 15s lOd. Woolworths changed hands at 17s Id on Tuesday, this being Id firmer than the closing price of the previous week, and later sales iasl week were at 17s 2d. N.Z. and Retailers Among New Zealand Industrials and retailers, Woolworth (New Zealand) firmed- 3d on Tuesday to change hands at 17s 9d. This price was maintained in four further sales during the week. Others which firmed iXrere Whakatane Board Mills (24s 6d), McKenzies (20s, with latex sales also at this price) and Fletcher Holdings (28s 9d), after a sale at 28s 6d (unchanged). Whitcombe and Tombr were steady at 28s. as . were also William Cable Holdings (22s 6d), Andrews and Beaven (two sales at 24s) t and Ballins Hotels (two sales at 7s). Fletchers convertible ■ debentures were 6d easier in two sales at 21s 3d. and Claude Neon at 46s 9d was 5s 9d easier. Quill Morris in first local business for thfe year at 21s.

Wool worths (South Africa) were 2s 3d firmer at 20s 9d than the last sales in the city, on March 26 and 28.

Industrials Railroads 1926 .. 153.08 113.70 1927 .. 175.94 134.30 1928 .. 226.21 141.08 1929 .. 311.24 159.66 1930 .. 236.34 133.13 1931 .. 138.58 76.07 1932 .. 64.57 27.46 1933 .. 83.73 38.17 1934 . .. 98.28 41.71 1935 .. 102.00 33.83 1936 .. 162.25 50.75 1937 .. 166.36 49.51 1938 .. 132.44 26.73 1939 .. 142.66 30.01

Industrials Railroads 1946 , 177.20 51.13 1947 . 181.16 52.48 1948 . 175.98 52.67 1949 . 200.20 52.76 1950 . 235.41 77.64 1951 . . 269,23 81.70 1952 . 291.90 111.27 1953 . 280.90 94.03 1954 . 401.97 146.23 1955 . 488.40 163.29 1956 .. 496.41 153.56 1957 435.69 96.96 1958* 468.55 117.45