COMMERCIAL Review Of Week’s Stock Exchange Transactions

Press, Volume XCIX, Issue 29153, 14 March 1960, Page 16

COMMERCIAL Review Of Week’s Stock Exchange Transactions

[By Our Commercial Editor)

Markets were more active on New Zealand stock exchanges last week, Australian shares being particularly active.

Australian industrials were again uncertain and B.H.P. was the only share in this category traded locally at consistently higher prices. Retailers were the most buoyant section of the market in Australia but in Christchurch trading only Waltons made substantial gains.

New Zealand-domiciled shares recorded twice as many rises as falls.

The Australian decision to relax import restrictions continued to affect shares of New Zealand companies depending to some extent on the Australian market. Outside this group of companies, falls in New Zealand-domiciled shares were few.

Printing and publishing firms' shares met a renewed demand last week. Liquor firms’ shares were mainly firm, as were the shares of financial institutions. Most retailers’ shares were steady or firmer.

Wall Street Prices The Dow Jones index of industrial common (ordinary) stocks fell below 600 on Tuesday, for the first time in 13 months. This index reached a peak of 685.47 on January 5 this year. By March 8 it had fallen 86.37 points, or 12.6 per cent., to 599.10. The next day it recovered to 60.16, almost back to the previous week’s closing figure. London prices have also fallen this year, but less sharply than New York prices. The “Financial Times's” index of industrial ordinary shares reached a peak of 342.9 on January 4 this year and fell 36.8 points, or 10.7 per cent., to 306.1 on March 9. Retail shares are at record levels in Sydney, but banks and industrials have eased slightly from their January and February peaks. Details of transactions on the Christchurch Stock Exchange last week, with figures for the previous week in parenthesis, are as follows: — Government stock. £6060 (£26.320); local body and company stock and debentures £9OO (nil); banks 600 ( 2505); breweries 1400 (185); building societies nil (600); frozen meat nil (200); gas 400 (1600); insurance 800 (900): loan and agencv 2690 (1450); shipping 3375 (nil); woollens 1655 (950); miscellaneous 23,597 (16,333); miscellaneous (N.Z.) 16,006 (15,555)-; overseas nil (200); unlisted 1015 (900); total 51,538 (41,478). Gilt-Edged Yields Rise The Government stock market was again weak. Half a dozen short and medium-dated issues are now showing a return of 5 per cent, or more. Yields to maturity on issues traded in Christchurch during the week were:—3 per cent. 1957-60,

£4 16s lOd per cent.; 41 per cent. June 1961, £4 10s 6d per cent., £4 10s 8d per cent.; 4} per cent. 1962-63, £4 16s lid per cent.; 3 per cent. 1961-64, £4 19s 2d per cent.; £5 0s 3d per cent.; 3j per cent. 1965, £5 0s 5d per cent., £5 0s 6d per cent.; 4.5-8 per cent. 1966-67, £4 18s 8d per cent., £4 18s 9d per cent.

Preference shares tended to weaken. Commercial Bank of Australia (£5 16s 6d), Wright Stephenson (18s 6d) and Hay’s preference (18s 6d) sold at lower prices.

Aulsebrooks’, and Fletcher Holdings B and C preference were steady. Forest Products preference improved to 20s 3d. Commercial bank of Australia improved to sell at 17s but N.S.W. were 5s down at £35 ss. A.N.Z. were steady.

Breweries were very firm. N.Z. rose from 54s 6d to 55s 3d and Westland (old) from 25s to 265. Westland new has dealings at 25s 6d. Dominion Breweries were steady at 795. Ballins Industries sold unchanged at Ils 2d. Ballins Hotels, ex rights to the three-for 20 issue, sold Is down at 295. Frozen Meat Inactive No local sales of frozen meat shares were recorded but C.F.M. were on offer at the last sale price of £24. Buyers for N.Z. Refrigerating raised their offers 9d to 35s 9d. Christchurch Gas, paid, maintained the previous week’s price of 20s 6d. The contributing shares rose to sell at 15s. Auckland Gas were also firmer, at 8s 3d. Insurance shares were in demand. South British rose 3d to 525, earlier business in the B shares was done at 50s 6d. unchanged, and Standard sold unaltered.

Lombard, New Zealand, rose 9d to 12s 6d on publication of the accounts. Newton King 5s paid were 2d down at Bs. N.Z. Farmers’ Co-operative ordinary, first preference and A preference rose further to sell at 20s 3d, 20s and 19s respectively. The steady rise in this firm’s shares this year is probably attributable to the company’s retailing interests rather than its activities as a stock and station agent. National Mortgage A and B, in first business this month, declined to sell at 8s 7d and 8s 9d.

Kaiapoi Woollens, in first local