COMMERCIAL Review Of Week’s Stock Exchange Transactions

Press, Volume XCVIII, Issue 28999, 14 September 1959, Page 16

COMMERCIAL Review Of Week’s Stock Exchange Transactions

[By Our Commercial Editor! Last week was one of the busiest of the year for the Christchurch Stock Exchange. Share turnover, of which Australian-domiciled securities comprised half, rose to 45,000, a total only once exceeded this year. ’ Prices were steadier, possibly, than for some months. A comparatively small proportion of shares changed hands at higher or lower prices, and rises only slightly exceeded falls.

Only a modest volume of business in Government and local body stocks was recorded in Christchurch, but these securities were active in Wellington. Gild-edged yields again fell sharply.

The strength pf the gilt-edged market in the last two months is somewhat puzzling, as yields more often rise than fall in the third quarter. The seasonal weakness of the market was scarcely noticeable this year and had been replaced, by mid-July, by a firming tendency. Since then yields on long-term stock have fallen 3s per cent., mediumterm 3s per cent, and short-term 4s 6d per cent. Some switching of buying from equities to gilt-edged has probably occurred in this period. The drops in yields, however, are large enough to suggest buying of a less speculative nature. Preparation of the market for a small Government loan next month could explain some of the buying interest. Weeks Issue Shareholders in Weeks. Ltd., will presumably not learn the terms of the proposed cash and bonus issue announced on Friday night until the proposal has been approved by the Capital Issues Committee. In the meantime, a note to the accounts should be borne in mind by shareholders.

“Under an agreement with Field, Sons and Company, Brad--1 ford, that company is entitled to i subscribe for up to 50 per cent, of any further shares issued 1 by Weeks at the price paid by ! other shareholders,” the note reads. 1 The latest accounts show reserves (excluding depreciation reserve) at £150,675. Paid capital i is £138,837, of which £79,080 is in ordinary shares. The latest profit of £22,959 covered total dividend requirements more than twice. Details of transactions on the Christchurch Stock Exchange last week, with figures for the previous week in parenthesis, are as follows: Government stock £2740 (£5450), local body and company debentures and stock £3500 (£1700), banks 930 (889), breweries 2000 ( 750), frozen meat 2972 (nil). Insurance 1025 (770), loan and agency 3653 (1686), timber 800 (400). woollens 1392 (1512), miscellaneous (Australian) 21,546 (13,692), miscellaneous (N.Z.) 10,296 (13,495), mining nil (400), unlisted 400 (1800), total 45,014 (35,394). Yields to maturity on Government stock traded locally were: 3% 1857-60, £4 5s lld%; 4’/ a % June 1961, £4 6s 6d%; 3% 1960-63, £4 9s KSPreTerknee Shares ' ' Preference shares which reappeared on the sales list were Andrews ' and Beaven (18s 6d), Aulsebrook (18s 6d), Fletcher B preperence (18s 6d), McCaskey (15s), and Weeks (19s). Wattle Canneries preference (20s) were firmer. A.N.Z. Bank, after a sale at 50s IVsd. closed at the previous week’s price of 50s. Commercial Bank of Australia were 3d higher at 18s 3d. National Bank of N.Z. changed hands at 35s 3d, the price established in recent North Island business. These shares have sold as low as 29s on New Zealand stock exchanges this year. Bank of N.S.W. sold 5s down at £36. Sharp Drop in Ballins Ballins Breweries, after a long rise to 395, eased last week to sell at 38s. N.Z. Breweries also dropped on Monday to sell at 41s 3d out firmed later and closed at 42s 3d. Canterbury Frozen Meat and N.Z. Refrigerating both eased, selling at £26 12s 6d and 34s 3d respectively. N.Z. Insurance (755) and South British (87s and 8«s 9d) were weaker. National Insurance (30s 6d and 30s 9d) firmed and Standard (265) were unchanged. National Mortgage A sold 6d above previous Christchurch business at 8s 6d, the price established in more recent business elsewhere. Newton King (16s 9d, ex div.) were firmer. N.Z. Farmers’ Co-operative A preperence, in first recorded business since the dividend announcement, sold 2s 6d up at 17s 6d. The more recently-traded ordinary and ® preference shares were both steady at 17s 6d. Kauri Timber (18s 7d) and Taupo Totara (418) were unchanged.

Bartholomew Timber, in first local business this year, sold for 355. Lane, Walker, Rudkin (475) and Tekau (325) were unchanged. Australians Firmer Most Australian industrials were firmer last week. Higher prices were paid for Ampol (19s 9d), A.W.A. (24s 6d), B.H.P. (55s 3d, with later sales elsewhere up to 565), Clyde Industries (16s, after sales at 15s 6d), Colonial Sugar (£56 ss, £56 15s and £57), and E.Z. Industries (16s lid). Ansett Transport (8s 2d to 8s), British Tobacco (33s 9d, ex div) and International Combustion (18s Ud) were traded at lower prices. L. J. Hooker options changed hands at 9s 4d. Coles were active at 15s, unchanged. Cox Bros. (6s 4d and 6s 3d) finished the week Id up. Reid Murray (10s 3d unchanged, 10s 2d and 10s Id), Waltons (13s 9d) and Woolworths (15s 7d unchanged and 15s 6d) eased slightly. Most New Zealand industrials were steady. Unchanged prices were paid for Alex Harvey (26s 9d), Dominion Fertiliser (36s 6d), Donaghys Rope (495), Dunlop, N.Z. (275), Fletcher Holdings (365), Henry

Berry (25s 9d). M.C.P. (5s 3d). N.Z. Cement (205),. Forest Products (29s 6d), Transport Nelson (7s 6d) and Weeks (40s).

Tasman shares changed hands in Christchurch on Friday at 255, their lowest price for more than a month. From 25s fd on the eve of the announcement of the agreement with Bowater, the shares jumped to 27s and 27s 6d in a few days, but fell almost as sharply last week. William Cable (24s 9d unchanged and 24s 6d) also eased last week. Turnbull and Jones sold at 48s 3d, their highest price of the year, after publication of their full accounts. These show that the increased dividend requirement is still covered more than twice by net profit, after deducting the preference dividend requirement. General reserve (listed under revenue reserves) now stands at £198.200 in the consolidated accounts and the share premium reserve is £40.063 — a total of £238,263 in relation to issued capital of £175.000 ordinary and £lOO.OOO preference. Authorised ordinary capital is £30,000. Quill, Morris, in first ex dividend business, sold at 20s 6d. compared with business in July at 20s, pum dividend of 6d. Milbum Lime and Cement (29s 6d). Tip Top Ice (15s, c.d.) were also firmer.

Gains by Retailers Charles Begg made a good gain to sell at 90s 6d. Woolworths. N.Z., sold 3d up at 17s 9d. No sales of Hays were recorded, but buyers offered 24s 9d (last sale 245) after announcement of the increased dividend. Last year’s 10 per cent dividend was twice covered by net profit, after deduction of the preference requirement. Hallensteln Brothers, at 40s. maintained the urice established in recent North Island business. Beath lost is to sell at 35s after announcement of the lower profit.