COMMERCIAL Review Of Week’s Stock Exchange Transactions

Press, Volume XCVIII, Issue 28987, 31 August 1959, Page 16

COMMERCIAL Review Of Week’s Stock Exchange Transactions

[By Our Commercial Editor J

Last week’s trading on the sharemarket presented a very uneven picture. Rises exceeded falls in Christchurch trading, but only by three to two; last month there were as many as 10 rises to every fall in some weeks’ business.

Turnover was maintained above average levels until Friday, when it fell away sharply. Gilt-edged investments were in keen demand and the insurance section was again very strong. •

Loan and agency shares were firm, as were woollen and textile manufacturers. Most Australian retailers changed hands at lower prices, and there were more falls than rises among Australian industrials. Among the New Zealand industrials, the pulp and paper manufacturers were again firmer and other manufacturers’ shares were mainly steady. A renewed interest in wholesalers’ and distributors’ shares pushed several issues to their highest prices of the year. Special factors peculiar to individual firms may have caused these rises as the retail trade generally has fallen into the doldrums. Retail Trade Estimates

Figures given by the Government Statistician, Mr J. V. T. Baker, in an address this week, showed that retail turnover dropped sharply in the first quarter this year, after a fractional decline the previous quarter. Later figures in this . series are expected to show a continuation of the trend in the first quarter. Retail firms balancing their books at the end of June, or later, can therefore be expected to report lowei turnovers, on average, than in the previous year. In the year ended March, 1959 personal expenditure <ot which Mr Baker’s retail trading figures account for about 54 per cent.) was well maintained. Total personal expenditure rose £22m, to £74Bm. But direct taxation rose £4Bm, and the increase expenditure was at the expense of private savings, which well £2Bm to £66m. Since March direct taxation has not been reduced, and private savings cannot have been much reduced, so the main burden of the increased taxation must have fallen on personal expenditure. A smaller increase in personal expenditure this year than last year seems very likely. Details of transactions on the Christchurch Stock Exchange last week, with figures for the previous week in parenthesis, are as follows: Government stock, £12,700 (£8060); local body and company stock and debentures. £l5OO (£700); banks 2900 (5); breweries 905 (1106); frozen meat 250 (296); gas nil (450); insurance 650 (1148); loan and agency 1800 (2738); shipping nil (600): woollens 262 (1880); miscellaneous (Australian) 10,660 (13,723); miscellaneous (New Zealand) 11.641 (13.080); overseas listings 1200 (nil); unlisted 2750 (1895); total 33.018 (36,915). Yields to maturity on Government stock traded in Christchurch were as follows:—31 per cent 1906-60 £4 8s 3d per cent.; 4',i per cent. 1960 £4 9s lOd per cent.; 3 per cent. 1959-61, £4 7s 3d per cent.; 31 per cent.,1962. £4 Ils 5d per cent and £4 10s 7d per cent.; 3 per cent. 1963-65. £4 10s 4d per cent. Preference Shares The preference shares of Lane, Walker, Rudkin (19s 2d) and Humes. New Zealand (18s 9d and 19s) were firmer. Andersons first preference (18s 9d), CBA preference (£6) and Dunlop, New Zealand preference (15s 9d) had first local dealings for some time.

Commercial Bank of Australia were unchanged at 17s lid. E.S. and A. In first business for more than a month made a good gain to sell at 34s 3d. N.S.W. were slightly weaker in sales at £36 7s 6d. Ballins Improve Ballins Breweries improved sharply to sen at 38s and 38s 6d. their top prices for the year. New Zealand Refrigerating confirmed easier sales elsewhere In a sale at 365. Subsequent business in Auckland was written at 35s 6d. South Otago were unchanged in business at 46s 6d. National Insurance (30s), New Zealand Insurance (775) and South British Insurance (90s) were all firmer. Standard (25s 6d) were unchanged. New Zealand Farmers’ Co-operative Association shares were firmer on quotation. The A preference (14s 9d and 15s) and B preference (14s 9d) sold above previous prices this year. Wright Stephenson (425, c.d.) were firmer. North Auckland Farmers (26s 6d) had first Christchurch business this year. Tekau Knitwear (31s 3d) were firmer.

B.HJ*. Bice Again B.H.P. (54s 6d) and Hilton Hosiery (18b 9d) were the only Australian Industrials traded locally at improved prices. Lower prices were received for British Tobacco (34s 3d), Clyde Industries (14s lid and 14s 10d, after 15Ds. unchanged). Colonial Sugar (£33), Email (9s Id) and National Consolidated (24s 9d). Repco (13s) were unchanged. Ansett Transport (8s 2d), International Combustion (19s 7d). LJ4.C. Industries (13s sd> were other Australian miscellaneous shares on the local sales list. Cox Brothers (6s 2d, after 6s 3d, unchanged). Coles (15s 3d and 15s), Reid Murray (Ils) and Woolworths • (15s 7d) were traded at lower prices Waltons were steady in sales at 14s

3d. Coulls. Somerville. Wilkie made a good gain to sell at 50s 6d. Turnbull and Jones were also up Is in business at 47s 6d. On Friday evening the company announced the addition of a bonus to the unchanged annual dividend. The best gain of the week was made by Weeks, 3s up in a week at 40s. Dividend last year was • per cent., covered nearly three times by net profit of £22.725. Ordinary capital of £79.080 is twice covered by reserves and carry-for-ward. Final dividend is due in the next few weeks. Forest Products shares twice touched 30s during the week—in Auckland on Tuesday and in Dunedin on Friday. Sales in Christchurch on Tuesday and Wednesday were made at 29s 6d, and closing prices in Auckland and Wellington were 29s 8d and 29s 6d Tasman were also firmer, closing in Auckland and Wellington at 25s 3d. The company’s production was apparently well maintained since the last balance date (October 31) for official statistics of

newsprint exports—all Tasman’s—since then show a 20 per cent, rise on the previous year’s figure. Whakatane Board Mills also reflected the buoyant note of the pulp and paper industry’s other shares in sales at 335. c.d. Of the other New Zealand industrials traded locally, only Milbum Lime (28s 3d) and Tip Top Ice (14s Bd, c.d.) made gains. Norrie Shoes Weaker

In first business since February. Norvic Shoes changed hands at 18s, a drop of Is 3d. An interm dividend announcement Is due soon. Ballins Hotels (15s), Bing Harris A (31s), Fletcher Holdings (355), Ross and Glendining (26s 6d) also declined. Unchanged prices were paid for Cyclpne Fence (30s 6d), M.C.P. (ss). New Zealand Newspapers (455), Tingey (8s 6d). William Cable (24s 9d) and W. R. Cooke (31s). Canterbury Roller Flour (10s 6d) had first recorded business this year. Mason Struthers, In first business for some months, sold at 26s on the eve of publication of the accounts. The shares sold earlier in the year at 21s. Maintaining its dividend rate, the company reports a smaller gross profit in the latest year, but only a slight drop in net profit. Hay’s shares recovered to sell at 245, their highest price of the year. McKenzies (19s 6d) were unchanged. Beaths made a good recovery to sell at 365. Woolworths (South Africa) shares had first local business for some months The ordinary shares sold for 27s 6d, and the A shares for 27s 3d.

Canterbury Seed (255), Beaths, 19s on deposit (265). Matea (4s Id, unchanged) and Zealandia Soap (9s 3d) changed hands in the unlisted section.