COMMERCIAL Review Of Week’s Stock Exchange Transactions

Press, Volume XCIX, Issue 29193, 2 May 1960, Page 16

COMMERCIAL Review Of Week’s Stock Exchange Transactions

On a quiet sharemarket last week, prices of most New Zealand shares were firm. Rises exceeded falls in this section of the market by five to one. The Australian market, particularly for chain stores, was also very firm. The market there has shaken off the hesitation apparent six weeks ago.

In a well-publicised statement in mid-March, Mr Staniforth Ricketson said the then level of share prices was “disturbingly high.” Australian prices, as measured by the Sydney Stock Exchange index of industrial shares, have risen more than 31 per cent, since the date of Mr Ricketson’s statement. Mr Ricketson said he expected share prices to be lower by June 30 “unless new and unexpected” favourable factors arose in the meantime. Since the end of March a claim for a wage rise has been rejected in Australia and wool prices have firmed appreciably. Both these developments were favourable to the share market, but the rejection of the wage claim was not altogether unexpected. The behaviour of the Australian market in the last two weeks does not suggest that prices will be lower there in two months than they were a month ago. Broken Trading

Turnover on the Christchurch Stock Exchange last week —the third short week in succession—was again well below this year’s average, even allowing for the loss of business on Anzac Day. It is not unusual for daily turnover figures to decline before and after a long week-end; and when there are two of these together the probability is that many investors were “out of town” for much of the time. Turnovers should recover now, especially with the firmer trend of the market since Easter. Seen in retrospect, the three days’ trading in the week after Easter may have been more productive than they seemed at the time to many sharebrokers. Recorded Christchurch turnover averaged a little more than 7000 shares a day, practically the same figure as in the previous (fourday) week and only 1000 a day below the most recent five-day week. As last week’s recorded tv mover averaged only 5000 shares a day, the early opening tfter Easter may have been justified after all. Farmers’ Trading shares attracted speculative interest in the North Island last week, when sales were recorded at 74s on Tuesday and 75s on ThursdayBusiness in these shares was recorded at 70s 6d on April 8. The “N.Z. Herald" says the record price reflected the possibility of a bonus issue some time in the near future. “Such an issue could possibly be made from a revaluation of the assets of the company, or perhaps wholly or partly from accumulated profits.” Tip Top Ice Cream’s change of name to General Foods Corporation became effective last week. Business was recorded at the steady price of 17s 3d. Details of transactions on the Christchurch Stock Exchange last week, with figures for the previous week in parenthesis, are as follows: Government stock, £5050 (£3000); local body and company debentures £l5OO (nil); banks 1015 (910); breweries 749 (300); building societies 200 (nil); frozen meat 2500 (5); gas 200 (416); insurance 533 (100); loan and agency 429 (990); shipping 566 (200); woollens 750 (300); miscellaneous (Australian) 5655 (3898); miscellaneous (N.Z.) 7142 (7390); mining 500 (nil); unlisted 200 (100); total 20.439 (14,609).

Gilts Firm The Government stock market was very firm, though inactive. Yields to maturity on issues traded in Christchurch were as follows: — 4J per cent. June 1961, £4 13s 2d per cent; 4J per cent. July 1961, £4 12s 4d per cent., £4 12s 8d per cent.; 3 per cent 1959-61, £4 8s 3d per cent; 3 per cent 1963-65, £4 16s 4d per cent; 4 5-8 per cent 1966-67, £4 18s 8d per cent. Banks were steady. New Zealand Breweries eased slightly to 58s 9d. Ballins Industries sold unaltered at Us 6d. Ballins Hotels rights advanced to business at 9s 6d. Southland Frozen Meat made a

good gain to sell at 655. N.Z. Refrigerating were steady. Christchurcn Gas regained 3d to sell at 19s 9d. National Insurance made a further sharp rise to sell at 41s. This share changed hands at prices down to 24s last year. Rumours of a takeover bid for the company have been prevalent for some time. Wright Stephenson regained the previous week’s slight fall to sell at 44s and other shares in this section were steady. Union Steam Ship preference were firmer at 20s 9d. Lane, Walker, Rudkin Industries rose sharply to a record 535.

B.H.P.’s Sharp Rise The sharp rise in Broken Hill Proprietary shares was the outstanding movement in the prices of Australian shares. In Australia they touched 90s, and in New Zealand 75s —both record prices—but eased slightly later. Closing business was written at 87s 3d and 87s 9d in Australia, and at 74s and 74s 6d on New Zealand. As well as the widely-expected cash issue, some investors are now hoping for a share split from this company. Australian National Industries (5s 8d) and Email (Us 6d) sold at lower prices, and E.Z. Industries were unchanged. Australian retailers were very firm. G. J. Coles had latest local business at 16s 4d, Reid Murray at 14s 2d (ex dividend of 3d), Waltons at 12s 4d and Woolworths at 14s 6d —all slightly above the previous week’s prices. Cox Bros, were steady at Bs. Most New Zealand industrials were steady. Unaltered prices were paid in Christchurch for Apex Ice rights, Cyclone, McLeod Bros., Forest Products, N.Z. Paper Mills, R. and E. Tingey, Vibrapac (Otago) and Williamson Jeffrey. J. Wattie Canneries rose Is 7d to 37s 7d, Turnbull and Jones Is 6d to 62s 6d and Whitcombe and Tombs Is 6d to 51s 6d. Hay’s shares, after firming steadily on quotation for several weeks, rose 2s 6d to 36s 6d. Sales were made earlier this year at 28s 9d. cum dividend of 6d. Woolworths <N.Z.) rights, after an early Auckland sale at 5s 6d. closed at 6s 3d after the previous week’s closing price of 6s. The shares were unchanged at 16s 6d. after a sa le Id lower. N.Z. Farmers’ Co-operative Association ordinary and Bing Harris A, were steady.