COMMERCIAL Review Of Week’s Stock Exchange Transactions

Press, Volume XCIX, Issue 29165, 28 March 1960, Page 18

COMMERCIAL Review Of Week’s Stock Exchange Transactions

lßy Our Commercial Editor] Share turnovers on New Zealand Stock Exchanges fell away sharply last week. Recorded business in Christchurch was the smallest for four months.

Australian industrials and retailers were very quiet, though banks were active. Turnover of breweries’ shares was higher than usual and stock and station agents’ shares were also active. New Zealand domiciled industrials and retailers were less active than in any previous full week’s trading this year.

Australian industrials were again weak, most of the shares popular with New Zealand investors finishing the week at lower prices. The Australian market is still “shaking down” after official warnings on inflation, and after the announcement of increased imports. The frozen meat section was also weak. Prospects for lamb exporters are not good just now. Breweries, stock and station agents, insurance inns and some of the leading retailers continue to attract new shareholders. Southland Cement Shareholders in tire Southland ?ement Company on Friday rejected the advice of their committee —having previously rejected l he same advice by their directors —to accept the takeover bid by Wilburn Lime and Cement. (The iff er had formally lapsed on Januiry 31, so that a decision to “acept” the Milburn bid could not have been binding on the Milburn ’ompany). The shareholders have asked heir directors to seek a marketng agreement with Dalhoff and King (N.Z.), Ltd., under which he earthmoving firm would contract to sell the Southland Company's output. Unless Dalhoff and King can develop a new market for the cement the Southland ■ement will continue to be sold n direct competition with the products of the three large South ’sland producers. Mr D. D. Fea, who resigned last week as chairman of the company, has already warned shareholders that it would take years for the company to establish itself on this basis. The Milburn offer amounted to about 5s a (£1) share and, in the opinion of the shareholders’ committee, the offer was “much better than it had at first appeared.” The remainder of the shareholders apparently rate their chances of ultimate success at rather better than 5s in the £. The sale of a parcel of 1000 shares was reported by the Invercargill Stock Exchange on Friday at 6s. Within 12 months it should be apparent whether the buyer or the seller got the better of this bargain. Details of transactions on the Christchurch Stock Exchange last week, with figures for the previous week in parenthesis, are as follows: Government stock, £11,375 (£21,290); local body and company debentures and stock, £4050 (£700); banks, 1911 (1066); breweries, 2708 (498); building societies, nil (200): frozen meat, 455 (280); gas, nil (700); insurance, 800 (950); loan and agency, 2829 (2215); woollens, 700 (1290); miscellaneous (Australian), 12,883 <22,692); miscellaneous (N.Z.), 11,014 (14.803); mining. 150 (nil); unlisted, 1200 (1050); total, 34,650 (45.744). Gilt-Edged Market Firmer The gilt-edged market was firmer last week, nearly all stocks traded locally showing lower yields than in the previous week. Yields to maturity were as follows: 4J per cent. June. 1961. £4 Ils lOd; 4J per cent. July, 1961, £4 6s Ud per cent.; 3 per cent. 195961, £4 12s 4d per cent.; 4£ per cent. 1962, £5 Os 4d per cent • 3 per cent. 1960-63. £4 18s 7d per cent.; 4? per cent. 1962-63, £4 17s 2d per cent.; 3 per cent. 1963-65, £4 18s 4d per cent. Commercial Bank of Australia preference were slightly firmer at £5 17s, and National Bank of New Zealand rose 9d to 36s 9d Unchanged prices were paid for A.N.Z. Bank (after sales 6d higher at 47s 6d), C.B.A. ordinary and Bank of New South Wales. National of Australia eased to 19s 6d. New Zealand Breweries finished the week at 60s and 60s 3d, compared with the previous week’s close of 58s. and this year’s opening price of 50s. Dominion Breweries rose 6d to 77s 6d. Ballins Industries closed at Ils 2d unchanged, after several sales Id higher. Frozen Meat Weaker The frozen meat section was weak, in response to the continued weakness of the United Kingdom market for New Zealand lamb. Canterbury Frozen Meat finished the week 10s down at £23. New Zealand Refrigerating 6d down at 355. and Southland Frozen Meat 6d down at 63s 6d. The Southland company has a new competitor now—the Alliance Freezing Company, whose works will be officially opened today. South British Insurance B were firmer at 51s ,3d. Dalgety (455)

and Wright Stephenson preference (18s 9d) were firmer in the loan and agency section.

Felt and Textiles of Australia sold at 35s 3d on Friday, compared with 36s on March 9, and with their peak of 41s earlier in the year. The threat of more severe competition for imports has particularly affected Australian textile manufacturers. New Zealand firms in the textile industry. continue to draw support from the investing public. Mosgiel Wool made a good gain to sell at 565, and Timaru Wool, Silknit and Kaiapoi were unchanged. Ampol (15s sd), Ansett (6s lOd). B.H.P. (67s 6d and 68s), Email (10s 9d), E.Z. Industries (19s), and Clyde Industries (15s> changed hands at lower prices. The retailers, which in earlier weeks had continued to rise while industrials were unsteady, also turned downwards last week. Cox Bros. (7s 8d), Coles (16s 8d), Woolworths shares (14s 2d) and rights (7s Id), and Reid Murray (13s 8d) all had latest business at slightly lower prices. Only Waltons improved, gaining 3d to 15s 3d. Pulp And Paper The hearing of the application by New Zealand Forest Products for a licence to produce pulp and paper products in Canterbury stimulated interest in this industry. Forest Products’ shares declined further and finished at 30s 6d (30s z 3d in Auckland). New Zealand' Paper Mills rose sharply to sell at 67s 6d—ss above their March 10 price, but still 5s below their top price for the year. Tasman made a further slight recovery after the chairman’s report to the annual meeting to sell at 245. Whakatane Board Mills were steady.

Giant Industries fell 6s to 16s. Leyland Investments Id to 8s sd. M.K. Manufacturers 9d to Ils 3d Tip Top Ice 6d to 18s. and Whitcombe and Tombs 6d to 48s. Retailers were inactive. Hay’s, after firming on quotation since business on March 10 at 30s, sold at 31s 7d. The notes were 3d higher at Ils 3d. Cash Order Purchases, in first business for two months, rose 2s 6d to 42s 6d. New Zealand Farmers’ Cooperative Association shares were all firm on buyers’ quotations but no business was recorded. D.LC. and Milne and Choyce were steady. Woolworths (N.Z.) rights had first business during the week, changing hands in Wellington at 5s 6d and 5s 3d. They confer the right to take up new 5s shares at a 5s premium. New shares costing a total of 15s 6d would yield £3 17s per cent, assuming a continuation of the current 12 per cent, dividend.