COMMERCIAL Review Of Week’s Stock Exchange Transactions

Press, Volume XCVIII, Issue 28981, 24 August 1959, Page 16

COMMERCIAL Review Of Week’s Stock Exchange Transactions

(By Our Commercial Editor]

Price rises again outnumbered falls in share trading on New Zealand Stock Exchanges last week —but again by only a small margin.

Turnovers were well maintained at the high levels of recent weeks, and were well spread through the quotation list. In Christchurch, turnover in most sections was very close to the previous week’s figure.

The insurance section was rather more active than in recent weeks, and some notable gains were made by shares in this category.

The greater activity, and recent buoyancy. of insurance shares may well be a symptom of the uncertainty of the market in other directions. Industrial shares, both Australian and New Zealand, were generally firm last week, but retailers were weak and inactive. Insurance shares are the traditional refuge of investors suspicious of a market “break.” Search for New Investments

The market is still strong, however, by any standards except those of recent months. Many investors are seeking out lesserknown shares, deliberately exchanging security for higher yields and possibly bigger capital gains. The appearance on the Christchurch sales list last week of such shares as Winchcombe Carson, Brown Ewing, Central Otago Fruit, Die Casters. Drug Houses, Hilton Hosiery, Hooper Baillie, L. J. Hooker, National Consolidated, Repco and W. T. Coggins is evidence of this.

Details of transactions on the Christchurch Stock Exchange last week, with figures for the previous week in parenthesis, are as follows:—Government stock £BO6O (£10,745); local body and company stock and debentures £7OO (£1000); banks 5 (93); breweries 1100 (1435); frozen meat 296 (898); gas 450 (100); insurance 1148 ( 290); loan and agency 2738 (1732); shipping 600 (492); timber nil (400); woollens 1880 (2717); miscellaneous (Australian) 13,723 (12,623); miscellaneous (N.Z.) 13,080 (13,042); mining nil (500); unlisted 1895 (1305); total 356,195 (35-627) Gilt-Edged Yields Yields to maturity on Government stock issues traded in Christchurch last week were as follows:—4li per cent. 1960, £4 7s 7d per cent.: 3 per cent 1957-60, £4 7s 8d per cent: 3 per cent 1959-61, £4 Ils 9d per cent; 4 3 ,i per cent 1962-63, £4 13s lid per cent; 3 per cent 1961-64, £4 Ils Od per cent; 3 per cent 1962-64, £4 Ils Id per cent; 3 per cent 196365, £4 Ils 4d per cent: 3% per cent. 1965, £4 15s 5d per cent. Unchanged prices were paid for the preference issues of Lane. Walker, Rudkin (19s), Hays (18s 6d), J. Gadsden, N.Z. (20s 6d), Skellerup (18s 6d). and Weeks (18s 9d), and Woolworths (N.Z.) Properties preference (19s). Bank of New South WaTfes were steady tn a sale at £36 10s. Dominion Breweries changed hands at 695, the price paid in other centres the previous week. N.Z. Breweries, in sales at 40s 3d and 41s, made good gains over the previous week’s price of 40s. C.F.M. Firmer Canterbury Frozen Meat shares, which had changed hands at £2O 5s for a month improved 10s on this price. N.Z. Refrigerating were steady at 375. j Christchurch Gas lost M tn a sale at 19s 9d. The insurance section was very firm. National (295), New Zealand (755, 75s 6d and 765), South British (88s) and Standard (25s 6d, cum div.) were all firmer. South British jumped to 89s 6d in Auckland business on Friday. National Mortgage A were fractionally firmer in business at Bs. N.Z. Farmers’ Co-onerative gained 3d to sell at 14s 6d. Wright Stephenson (41s 9d) were unchanged Winchcombe Carson, which are seldom traded locally, changed hands at 31s 9d. N.Z. Guarantee, in first local business for some time, sold for 4s, the nrice established in recent business e’sewhere. Northern Steamship were firmer in sales at 10s 6d. Felt and Textiles, N.Z., In a sale at 51s. registered the only gain in the woollens section. Lane, Walker, Rudkin Industries (455) were easier. Tekau (31s) were unchanged, as were the unlisted Kaiapoi (29s 6d). B.H.P. Accounts Disappoint Among the Australian industrials, A. (22s 3d, with one sale at 225, unchanged). Colonial Sugar (£54 ss), and Toppa (ss) were firmer. B. after rinsf to 555, slipped back to 54s after DUblication of the accounts. As production and profit records were shown in the accounts, it seems that some buyers had been honing for a hint of an early share issue. Amnol (19s), Clyde Industries (15s) and National Consolidated (255. after a sale 6d higher) were unchanged. F..Z. Industries closed at 17s (unchanged) and at 17s Id. W. T. Coggins (13s sd). Repco (13s), Ampol notes (16s 9d). Die Casters (7s 7d), Drug Houses (445), Hilton Hosiery (16s), L. J. Hooker (17s 3d) and Hooner Bailie (14s) were other Australian issues on the local sales list. Reid Murray (Ils Id), Cox Bros. (6s 3d), Waltons (14s 4d and 14s 3d) and Woolworths (15s lOd and 15s 8d) all changed hands at easier prices. Reid Murray contributing had first local business for some time, at 8s 4d. G. J. Coles, though not traded locally eased in sales elsewhere to sell at 15s 4d. The sharp drop to 15s 9d in the price of these shares, referred to in this column last week, was mainly due to the shares becoming ex bonus Issue. This accounted for Is Id of the drop of Is 6d. N.Z. Industrials M.C.P. shares provided the major fluctuation among N.Z. Industrials. Rising sharply to sell at 5s 3d. 6s. and 6s 6d on successive days, they drooped back to 5s on Friday after the company’s general manager denied that Griffin and Sons were negotiating to take over M.C.P Forest Products shares topped 29s for the first time last week. Sales were made in Auckland on Thursday at 29s and at 29s Id, and in Wellington on Friday at 29s 3d and at 29s 6d. Sales were made in Melbourne on Thursday at 355. or Is (N.Z.) below the ruling N.Z. rate. Cyclone Fence (30s 6d). Ross and Glendining (275), Transport (Nelson) (7s 6d), Vibrapac Blocks (225). Wilsons Cement (13s 2d) and Weeks (375) were also firmer. Cotills, Somerville. Wilkie, in first recorded business since the announcement of an unchanged annual dividend, lost Is 6d to sell at 49s 6d. Last year’s 10 per cent dividend was covered three times by net profit.

but since then capital has been increased by a bonus issue of one for five. Tasman (24s 3d), Farrier - Waimak (15s 6d) and Whakatane ordinary (32s 6d and 32s 9d) also lost ground. Whakatane preference (23s 3d), Andrews and Beaven (275), Dunlop, N.Z. (275), Milburn Lime (28s). N.Z. Newspapers (455), Ultimate Ekco (20s) and Wilson Malt (18s) were unchanged. Brown Ewing were steady tn business at 14s. Woolworths. N.Z.. eased to sell at 18s and 17s 9d, and Hays to sell at 23s 6d. Unlisted Stocks

Woolston Tanneries, in the unlisted section, made a spectacular gain to sell at 15s. compared with 10s on July 27. The company’s bank debt having been satisfied by the sale of current assets, the shareholders can now hope for a return of some of their capital from the sale of the company’s land and buildings next month. Prudential Building shares, in first local business for some time, changed hands at 17s. Hellaby’s Meat, another share infrequently traded in Christchurch, changed hands at 595.