COMMERCIAL Review Of Week’s Stock Exchange Transactions

Press, Volume XCVII, Issue 28619, 23 June 1958, Page 14

COMMERCIAL Review Of Week’s Stock Exchange Transactions

(Bu Our Commercial Editorl

The firmer note of the Christchurch Stock Exchange, which had been evident in recent weeks, was maintained last week. For the fifth successive week’s trading, price rises outnumbered price falls, by 29 to 8. This was after eight weeks of the opposite tendency. Activity was again brisker, with 24,646 shares changing hands, the largest for any week since that ending March 21.

Government stock was especially active, with £33,525 changing hands during the week. This is the largest week’s business in gilt-edged securities since the beginning of this year, the previous best being £18,860 in the week ending March 21. Last total is the highest since October, 1955, when £36,715 was traded in one week. Yields were mostly lower.

A feature of the week’s trading was the further advance in value of the shares in Woolworths (Sydney). This stock is the one most traded on the Christchurch Stock Exchange, and very few other Australian or New Zealand companies experience half as much business in their shares as does this firm. Those which approach Woolworths (Sydney) in volume of shares traded locally are New Zealand Breweries, New Zealand Insurance, South British Insurance, Ampol, and G. J. Coles. First Sale For Year Woolworths’ shares sold at 15s 2d in their first local business for the year. This was on January 14, the first day of trading in 1958. A sale was also made at 15s 3d on the same day, and this was the start of a steady rise in value of the stock. Within one month the local price had risen to 16s, and had reached 16s 3d by the end of February. On March 18 and 19, the shares changed hands in Christchurch at 17s 3d, and a sale the next day at 17s Id, ex dividend, of 4d, actually showed a further rise of 2d. The stock declined from this peak in the next two weeks* reaching 15s 9d on the last day of March. The most abrupt drop in this period was on March 27, when the stock sold at 16s 6d, having changed hands at* 17s the previous day. From 16s on April 1, the stock rapidly gained again to reach the year's peak of 17s 3d in the middle of April. This price was maintained for one week, but by May 1 the price had slipped again to 16s lOd. The next local sale, on May 5, was at x f6s 3d, representing a fall of 7d in two days’ trading. Slow Recovery

From here the price slowly recovered again, reaching 17s by the end of the month. Sales at 17s Id and 17s 2d were made in

the first week of June, with the price rising to 17s 6d, the highest in Christchurch for the year, on June 13. Last week brought further rises in price, with sales on the Christchurch Stock Exchange of 17s 8d and 17s 9d on Tuesday, and 17s lOd on Thursday. The current price of this stock in Australia is around 20s sd. In New Zealand currency, this would be 16s 4d. With the stock actually selling in the Dominion for 17s lOd, the premium being paid by New Zealand investors is in the region of 9 per cent. This is common to most Australiandomiciled shares at present, and is probably caused as much by eagerness to acquire sterling funds by the resale of these shares, as by genuine confidence in the future of these Australiandomiciled companies. The premium at this time last year was between 3 per cent, and 4 per cent., and was around 7 per cent, in December, 1957. The story of Woolworths’ expansion might in itself be sufficient justification for paying a 9 per cent, premium for shares in the company. At the annual meeting at the beginning of May, the chairman (Mr C. Scott Waine) outlined an impressive programme of recent and future increases in turnover. The dividend for the year, on an increased capital, was 12 per cent. Ten new stores were opened in the last year, according to Mr Waine, and a further 16 are under construction. Details of transactions in Christchurch last week, with the previous week’s figures .in parentheses, were:— Government stock, £33,525 (£6150); local body and . company debentures, £3717 (£500); banks, 500 (397); breweries, 4130 (4515); frozen meat, 800 (1050); gas, 398 (nil); insurance. 150 (650); loan and agency, 2392 (1200); Australian-domiciled. 7521 (3775); New Zealand industrials and retailers, 7880 (8100); Australian mining, 300 (nil); unlisted, 575 (300); totals, 24,646 (19.787). Gilt-edged Yields Yields to maturity on Government stock traded in Christchurch during the week were:— 3% per cent., 1959, £4 15s lOd per cent.; 3 per cent. 1957-60, £4 19s lOd per cent.; 4»i per cent., 1960. £1 14s lOd per cent (two transactions), £4 14s lid per cent, (two transactions), £4 15s Id per cent., £4 15s lid per cent., and £4 16s 3d per cent.; 3 per cent., 1959-61, £4 14s 2d per cent.; 3% per cent., 1962, £4 17s 7d per cent.; 3 per cent.. 1980-63, £4 17s Id per cent.; 3 per cent., 1963-65, £4 18s 5d per cent. Nelson Fisheries preference was 6d firmer at 21s and Dunlop (New Zealand) preference were also firmer at 16s 9d. New Zealand Farmers Co-op. first preference were Is 3d easier at 15s 3d. New Zealand Forest Products preference were unchanged at 20s. At 15s lOd, Commercial Bank of Australia were 4d firmer. Ballins Breweries firmed to 34s 3d in 15 sales during the week, after changing hands on Tuesday at 345, unchanged. New Zealand Breweries first sold at the unchanged price of 555. then reached 55s 6d before falling to 54s 6d and 54s 3d towards the end of the week. Dominion Breweries rose to 84s 6d and later to 86s. New Zealand Refrigerating rose to 43s 6d and then to 44s 3d. with a further sale at the latter price. Gas Christchurch Gas (contributing) were in first local business for the year at 12s 6d. At 7s, Auckland Gas also made its first appearance for the year on the local lists. In one sale only during the week, New Zealand Insurance were Is 3d firmer at 80s 6d. South British Insurance were also firmer, reaching 80s on Friday, Is 6d above the previous sale on June 11. Credit and Finance sold at 24s 6d, the first sale of this stock in Christchurch this year. In two sales at 19s, Mutual Benefit was Is 6d easier. South Island Finance was 2s easier at 31s. National Mortgage A was firmer by 6d at 7s. Ampol were 5d firmer at 12s 6d. British Tobacco reached 29s 3d, above the previous highest price for the year in local business. Colonial Sugar (Sydney Register) jumped to £37, the highest price for the year paid in local business, from their most recent sale locally of £35, on May 29. Cox Brothers were steady at ss, and Email were also unchanged at 6s. E.Z. Industries firmed 3d to 14s 9d.

G. J. Coles firmed 3d to 16s 6d, with a later sale also at this price. Imperial Chemical Industries (A.N.Z.) reached a peak for the year in local business at 51s 6d. Morts Dock were unchanged at 9s 6d. From* the previous week’s closing price of 15s lOd, Waltons firmed to 15s lid, 16s and 16s Id, ending the week at the latter price after a lapse to 16s on Thursday. Woolworths firmed through 17s 8d and 17s 9d to a local peak for the year of 17s lOd, with four sales at the latter price on Thursday. The rights to Henry Jones’ new issue were in first local business at 265. N.Z. Industrials and Retailers Among New Zealand industrials and retailers. Woolworths (New Zealand) was unchanged at 17s 9d in the first local sale of the week. On Tuesday business was done at 17s 6d, and this price was maintained on following days, even though the stock had become ex-dividend of 3d in the meantime. New Zealand Forest Products eased Id to 17s 7d, but regained to 17s 8d later in the week. Two parcels of M.C.P., totalling 1496 shares changed hands at 3s 9d, 3d firmer than the last local sale, which was on June 10. Tip Top Ice (14s) was also firmer. Other stocks to firm were D.I.C. (18s), Griffin (13s), Ross and Glendining (265). and Whakatane Board Mills (26s 6d). New Zealand Farmers’ Fertiliser eased considerably to change hands at 28s 8d on Wednesday. The most recent local sale of this stock had been at 36s 6d, on February 7. Parcels changed hands on Friday at 28s 9d and 295. New Zealand Cement w,as 3d easier at 17& 6d, and other New Zealand industrials and retailers which changed hands at prices below those of most recent Christchurch business were K.P. Drugs (85s), Hallensteins (37s 6d>. and the unlisted Carbonic Ice (56s 6d). Steady Prices Stocks which changed hands at steady prices were McKenzies (20s), Whitcombe and Tombs (28s), Claude Neon, New Zealand (46s 6d), Cyclone Fence and Gate (33s 6d) and Cyclone new issue (33s Id). Airwork, exdividend (29s 3d) was in first local business for the year, as were Otago Daily Times (51s 6d), Milburn Lime (28s), and the unlisted stocks Christchurch Press Company (£l2 15s), and Regent Theatre, Dunedin (2?s 7d). In the Australian mining section, Timor Oil was steady at 3a.

STERLING EXCHANGE RATES

Effect Of Change In London

The Bank of New South Wales has announced that, after the decrease of } per cent, in the Bank of England discount rate from 5J per cent, to 5 per cent., the following New Zealand on London exchange rates will apply as from Friday:— Buying rates (basis £lOO sterl-

Sel ling Rate .. 101 0 0 101 0 0 The bank also advises that the! rate of interest applicable to postshipment finance of wool is now 8 per cent., applicable from yesterday. |

ing). New rate Old rate £ s. d. £ s. d. T.T. .. .. 100 7 6 — Airmail O/D .. 99 18 3 99 18 0 3 days .. 99 16 9 99 16 3 30 days .. 99 8 3 99 7 0 60 days .. 99 0 0 98 18 0 90 days .. 98 11 9 98 8 9 120 days .. 98 3 6 97 19 9 Seamail O/D .. 99 8 0 99 6 6 3 days .. 99 6 3 99 4 9 30 days .. 98 18 0 98 15 6 60 days .. 98 9 9 98 6 6 90 days .. 98 1 6 97 17 3 120 days .. 97 13 3 97 8 3 Notes .. 97 13 3 —