COMMERCIAL Review Of Week’s Stock Exchange Transactions

Press, Volume XCVIII, Issue 28951, 20 July 1959, Page 16

COMMERCIAL Review Of Week’s Stock Exchange Transactions

(By Our Commercial Editor] The buoyant demand for New Zealand-domiciled shares again characterised trading on the stock exchange last week. Although turnover was down from the previous week’s record figure, Christchurch business included a wide range of New Zealand industrials, nearly all of them being sold at higher prices.

Investors continue to search for companies likely to make bonus issues. The 1959 Budget has given companies the “green light” for bonus issues by providing that such issues shall be non-taxable if financed from profits accumulated before the 1957-58 years.

I Hopes of such an issue from South British Insurance may account for the sharp rise in the price of these shares last week. Sales were made in Auckland on Friday at prices from 83s to 85s. compared with the previous week’s close of 78s 6d—and the year’s lowest price of 71s 9d. Last Issue in 1952 1 Paid capital, in 10s shares, is £2,063,280 and the authorised capital is £3,000,000. The last increase in capital was seven years ago, when a one-for-one bonus was made. This is the only post-war issue by the company. In the year ended August 31, 1958, consolidated net profit was £942,651, of which £18,176 was applicable to outside shareholders, and £64,077 was retained in the accounts of subsidiaries. Dividend requirement was £464,238. Net premium income was £7,829,375, the underwriting surplus £469,789 and investment income £538,472. Reserves of £12,422,090 included £4,883,243 for unexpired risks. j These figures suggest that the company could afford a bonus issue now of say, one for two, with good prospects of maintaining the present dividend rate. Last year’s accounts, however, were scarcely more impressive than those of other recent years, when no windfall came the way of shareholders. While the latest Budget encourages bonus issues, the company’s directors may feel that it would be prudent to conserve reserves until the economy is more buoyant. Yielding well under 3 per cent, the shares are now priced at a level which can only be justified by hopes of an early “hand-out.” Details of transactions on the Christchurch Stock Exchange last week, with figures for the previous week in parenthesis, are as follows : Government stock. £3300 (£2895*; local body and company stock and debentures, nil (£300); building societies, 100 (nil): banks, 245 ( 6731: breweries, 2070 ( 3649); frozen meat, 155 (2301; gas, 1670 (300); insurance, nil (1500); loan and agency, 1040 (2505); timber, 550 (nil); woollens. : 695 ( 2058); miscellaneous (Australian), 10,335 (19.344); miscellaneous '(New Zealand), 10,202 ( 9557); mining, nil (300); unlisted, nil (300): total, 27.062 ( 40,416). Gilt-edgeds Firm Yields to maturity on Government stock traded during the week were: 4J per cent., 1960. £4 10s 3d per cent.; 3 per cent., 1959-61, £4 Us 7d per cent.; 3J per cent.. 1962. £4 16s lid per cent.; 4? per cent., 196263. £4 16s 2d per cent.; 4? per cent., 1965. £4 18s 4d per cent. Nearly all these yields are lower than those obtainable on the same stocks the previous week. J. Wattle Canneries preference (19s 3d) had first local business this year. Commercial Bank of Australia (17s 4d) and Bank of New South Wales. Sydney register (£35 ss). were firmer. Ballins Breweries Improve Ballins Breweries improved in cum dividend business at 37s and 37s 3d. Ex dividend of just over 7d. the shares sold at 36s 7d. and closed 2d higher. New Zealand Breweries weakened to sell at 38s 6d Carlton (28s) reappeared on the sales list. Mutual Benefit (19s 9d) reappeared on the sales list. Canterbury Frozen Meat (£26 5s > were steady. New Zealand Refrigerating eased in light business at 375. Christchurch Gas. after a sale at 18s 6d. unchanged, improved to sell at 18s #d. The contributing shares had first business for some time at 13s 6d.

New Zealand Farmers' Co-opera-tive shares continued firm. In first business for some weeks the first

preference shares gained 3d to sell at 14s 9d and the B preference shares were 6d higher at 13s 9d. Wright, Stephenson (38s 6d) were also firmer. Kauri Timber, after a sale 3d lower, had later business at 17s 6d. the previous week's figure. Woollens Firm Lane, Walker, Rudkin, in first business for some time, made a good gain to sell at 435. Tekau were steady at 30s. c.d. Timaru, old (27 6d) and new (275) were firmer. Of the Australian industrials traded. Ampol (18s 3d) was the only one to improve. A.W.A. (21s), B.H.P. (50s and 50s 3d). Clyde Industries (14s 6d, 14s and 13s 9d) were weaker. Colonial Sugar, Sydney register, had early business at £49 2s 6d and £4B 15s, compared with £49 the previous week. Later business elsewhere was written at £4B ss. The New Zealand-reg-istered shares were also easier in a sale at £4B 10s. Email (10s), E.Z. Industries (16s 3d), and Toppa (4s 9d) were unchanged. Some of the less well-known Australian shares appeared on the Christchurch sales list last week. These included Davies. Coop (7s 3d), Gordon and Gotch (18s). H. C. Sleigh rights (Ils 9d). H. G. Palmer (10s), Hilton Hosiery (14s 6d), International Resistance (16s), National Consolidated (23s 6d and 235), Pye Industries, formerly Tecnieo (36s 9d), Reichholds (28s 3d), and Taubmans (9s 3d). Australian Retailers Ease Australian retailers tended to ease during the week. Cox Bros. (5s 8d after sales up to 5s lOd) and Waltons (14s 8d after sales up to 14s lOd) finished Id down. Woolworths were on offer at the close at 16s Id, after sales up to 16s 3d, the previous week’s price. Reid Murray, available on Friday at Ils after sales up to Ils Id. barely held the previous week's price, Myers were 3d up in an early sale at 23s 3d. New Zealand industrials which firmed during the week were Ballins Hotels (15s 6d), Coulls Somerville (47s 6d), Dunlop, New Zealand (26s lid). National Electrical (£7 12s 6d), R. and E. Tingey (9s), Reid Rubber (37s 9d), Tasman (22s 9d), Whakatane (29s 6d) and Whitcombe and Tombs (30s). Vibrapac Blocks, in first recorded business this year, sold at 30s, Is above last year’s price. Vibrapac (Otago) also appeared on the sales list. They sold at 20s. a drop of Is on the price recorded elsewhere earlier in the year. Quill. Morris (20s). Cyclone Fence (30si, Fletcher Holdings (355), Greater Crystal (27s 6di, Forest Products (26s 9d) were steady. Milne and Choyce <49s 6d) and Woolworths. New Zealand (17s 4Jd and 17s 6d I were firmer. No other New Zealand retailers changed hands in Christchurch.