COMMERCIAL Review Of Week’s Stock Exchange Transactions

Press, Volume XCIX, Issue 29177, 11 April 1960, Page 21

COMMERCIAL Review Of Week’s Stock Exchange Transactions

IBv Our Commercial Editor}

The sharemarket was again comparatively inactive last week. Christchurch business showed an increase on the previous week’s level but was still well below the figures typical of earlier weeks this year.

The uncertainty of the Australian market, and, to a lesser extent the approach of the Easter recess, were factors in reducing the turnover. The market was firm, though inactive, and prices for both Australian and New Zealand shares showed more rises than falls.

The London Stock Exchange reacted favourably to Mr Heathcoat Amory’s Budget. The “Financial Times” index of industrial ordinary shares rose 7 points to 331 in spite of tax increases. Company income tax and profits tax now account for 10s 3d in the £ of earnings of British companies. Forecasts, however, had been for even larger tax increases, so the British investor’s reaction was one of relief. To a minor extent the United Kingdom Budget has enhanced the attractions of investment in overseas—particularly Common-wealth-countries for the United Kingdom investor. Increases in taxes on British firms, and the stopping up of some loopholes in the domestic tax structure, may switch some investment from British to overseas-domiciled securities. Australian Market Quiet Turnover in investment, bonds md mining shares last week was reduced, according to a report f rom the Melbourne Stock Exchange. Prices generally were very firm, the report added. Company reports published during the week mentioned improved earnings and expanding business. Prices for market leaders finished at practically the same level as the previous week, but over the whole field rises outnumbered falls. Most of the moves were minor, the exchange says.

In the three months ended March 31, rises outnumbered falls in the ratio of 1.9 to I—the same as for the December quarter—the exchange reports. Notable among price movements on New Zealand markets last week was the firmness of the 'rozen meat section. Latest reports from the United Kingdom suggest that the seasonal decline in lamb prices may have reached bottom. The latter part of New Zealand's lamb shipments for the current season should be sold on a rising market. Such considerations may have persuaded in-

vestors that the decline in lamb exporters’ shares has gone far enough.

Breweries, insurance, pulp and paper and retailers were other sections of the quotation list which firmed noticeably during the week. Trading in rights diverted some investment from shares as there are many Australian and New Zealand issues on the market just now—Ballins Hotels, Claude Neon, Donaghy's Rone, Waltons and Woolworths (N.Z.) being the most active. Investors who took up rights to the new issue by M. O’Brien before Christmas at 7s lid to 9s 6d now stand to make a modest capital gain. Having paid a total of 27s lid to 29s 6d for their £1 shares, they now see buyers offering 32s for them. The company intends to apply for Stock Exchange listing which, if granted, should add further to the value. and marketability of the shares. Details of last week's transactions. with the figures for the previous week in parenthesis, are as follows: Government stock. £3705 <£6920); local body and companv debentures and stock. £5OO (£3700): banks. 600 (8); breweries. 600 (350); frozen meat, 263 (456): gas, 100 ( 983); insurance, 2650 (1250); loan and agency, 2900 (1050); shipping, 1400 (100); timber, nil (300); woollens, 900 (500); miscellaneous (Australian). 11.970 (12,599); miscellaneous (New Zealand), 15,891 (15,581); mining, 2700 (nil); unlisted, nil (773); total, 39,974 (33.813).

Government Stock Yields

Yields to maturity on Government stock traded last week in Christchurch were as follows: 3 per cent. 1957-60. £5 5s lid per cent.; 4J per cent. June, 1961. £4 13s 3d per cent.; 3 per cent. 1960-63. £4 19s Id per cent.; 3 per cent. 1961-63, £4 16s 7d per cent.; 4J per cent 1962-63. £4 17s 5d per cent. £4 17s lOd per cent.; 4| per cent 1966-67, £4 19s lOd per cent. Commercial Bank of Australia eased to 16s lOd. Dominion Breweries were firmer in sales at 775. New Zealand Breweries and the associated firm, Ballins Industries, sold unchanged. Ballins Hotels rights had first business, at 8s 3d.

The frozen meat section was firmer. Higher prices were paid for Canterbury Frozen Meat (£22 15s), N.Z. Refrigerating (34s 6d), South Otago (475) and. in Wellington business. Gear Meat (25s 3d). Christchurch Gas lost Is to sell at 19s 6d. The insurance section also tended to firm. New Zealand Insurance had latest business at 65s (up 3d), South British sold at 53s 6d (up 6d) and South British B at 52s 6d (up 6d). Standard Insurance were steady. National Insurance jumped Is 6d in Wellington business on Thursday to 38s 6d, making a total gain for the year of 2s 9d. An interim dividend announcement is due in the next few weeks.

Bonds Hosiery sold at 19s, the lower price established in recent North Island business. Silknit were sold at 275. unchanged, and at 26s 6d. Ampol, B.H.P. Firmer Latest business in Australian industrials and retailers was written at unchanged or higher prices. " Gains were made by Ampol (16s lOd at the close). Broken Hill Proprietary (69s 6d), Clyde Industries (15s 7d) and Email (Ils 9d). In the mining section Mount Lyell were 7jd down at 6s and Mount Isa gained 6d to 64s 6d. Steady prices were paid for Australian Motor Industries, Australian National Industries, Ansett, British Tobacco, Colonial Sugar and E.Z Industries. Cox Bros, finished fractionally higher at 7s lOd. Reid Murray were traded at 13s 7d unchanged and at 13s Bd. Coles and Woolworths both finished the week at the previous week’s level. Southland Cement declined during the week. The shares fetched as much as 6s 6d in the week of the shareholders’ decision to carry on the business and not to reopen negotiations with Milburn Lime and Cement. Later sellers have found their shares harder to quit, and last week’s sellers in Christchurch accepted 5s 9d. Tip Top Ice Cream shares sold at 17s last week—ls 6d below the year’s peak, reached just after the announcement of the merger of interests with Tip Top. Wellington. Other New Zealand industrials were mainly steady. Unchanged prices were paid for Dominion Builders. Griffin and Sons. Henry Berry, Milburn Lime and Cement. N.Z. Paper Mills, R. and E. Tingey, Whitcombe and Tombs. William Cable and Wilsons Cement. Greater Crystal Greater Crystal Palace shares rose 3s to sell at 30s 6d. The company announced in its last annual report that it intended to build shops on the Gloucester street frontage of the property. Work on this frontage is now under way and the sight of the hoardings has apparently encouraged purchasers of the shares. The chairman of the company, Mr A. F. Hopkins, was invited to comment on the rise in price of the shares last week, “There has been no significant development in the company's activities other than the proposals outlined in the last report,” he said. Forest Products’ shares responded smartly to the announcement of record sales and profit for the year just ended, and the promise of a maiden cash dividend. From 31s the previous Friday they moved up to 31s 2d on the eve of the announcement and 33s on Friday in Auckland. Weeks's shares rose Is 6d

early in the week, before the announcement of the terms of the bonus and cash issues. No sales have been recorded since the announcement. Coulls. Somerville. Wilkie (up 6d at 59s 6d», J Wattie Canneries (up 9d at 36s 6d» and M.C.P (up 2d at 6s 6d> were also firmer Shares in retail and other distributing firms were very firm last week. N.Z. Farmers' Cooperative Association ordinary shares, in first business since March 9, rose 9d to 20s 9d. The A preference and B preference shares sold at 20s. The four classes of shares in this company (except the first preference shares, which carry an extra I per cent.) receive the same rate of dividend. Hay’s shares were again firmer in business at 345. Woolworths (N.Z.) shares and rights rose to 16s 5d and 6s repectively. Ross and Glendining were 6d up at 25s 9d. Charles Begg and Co.. Bing. Harris A. and D.I.C. were steady.