COMMERCIAL Review Of Week’s Stock Exchange Transactions

Press, Volume XCIX, Issue 29361, 14 November 1960, Page 20

COMMERCIAL Review Of Week’s Stock Exchange Transactions

(By Our Commercial Editor)

Two falls to every rise were recorded in trading in New Zealand-domiciled securities in Christchurch last week. Prices are now about 5 per cent, below their peak for the year—reached in September—but are still nearly 20 per cent, above their lowest level, in March.

The Christchurch Stock Exchange was closed for the annual Show Day holiday on Friday and, as is usual in Show Week, turnovers were reduced on the remaining four days. There was some indication of a firmer tendency in the market on Thursday.

Australian shares were again weaker on both sides of the Tasman. The Sydney Stock Exchange of industrial share prices records a fall of some 15 per cent, from the September peak, and shows prices at their lowest level of the year. By Thursday a steadier trend was apparent in Australia, but balance of payments figures and credit restraints do not suggest an early or pronounced recovery of share prices. Last week B.H.P. and Colonial Sugar, which had previously slipped only slightly compared with most of the lesser-known stocks.

dropped sharply. The yield on these shares is still very low in relation to yields obtainable on less-favoured stocks, which suggests that prices of these shares must fall further (if the whole market continues to weaken) or that prices of the less-favoured stocks must rise more rapidly (if the market recovers). Bulls And Bears “Bull” and “bear” factors both appeared on the New Zealand market last week. First was the general realisation that the increase in trading bank ratios the previous week might be only the first move in an official deflationary policy. If the General Election at the end of the month results in a return of the Labour Government, Mr Nordmeyer can be expected to continue the credit squeeze. Indeed, whichever party wins the election, circumstances may dictate a deflationary policy. The most encouraging omen for the sharemarket for some weeks was the firmer trend at the Auckland wool sale on Thursday. Prices for coarser grades were stated to be about Id per lb up on recent South Island values, although increases in prices for finer counts were only fractionally firmer. As a movement of Id per lb, spread over a season’s wool clip, amounts to more than £2m, a recovery in the wool market would go some distance towards offsetting tighter credit control. Details of transactions in Christchurch last, week were as follows: Government stock. £24,950 (against £2900 the week before): banks. 35 (415); breweries, 860 (1888); building. 650 (600); frozen meat. 100 (1300); gas. 200 (200); insurance, nil (500); loan and agency. 2492 (1321; wool, 600 (600); Australian miscellaneous, 3795 (7628); New Zealand miscellaneous. 9440 (12.124); mining. 50 (650); preference, nil (1420); unlisted, 3300 (11.000); totals, 21,522 (38.936). Gilts Less Buoyant The market for Government stock was very active. Prices were still firm, but not so buoyant as m recent weeks. Yields to maturity on stocks traded in Christchurch were as follows: 4J per cent. June, 1961, £4 17* 2d per cent.; 3 per cent 1959-61. £4 6s 2d per cent; 3i per cant. 1962, £4 4s 3d per cent, £« «T 3d per cent., £4 6s 5d per cent.? 4J per cent 1962-63, £4 6s lOd per cent.; 3J per cent. 1965, £4 Ils 7d per cent, £4 Us 8d per cent.; 4} per cent 1965, £4 12s 6d percent; 41 per cent. 1966-67, £4 15s 7d per cent. No preference shares were traded in Christchurch.

Bank of N.S.W. dropped 10s to £33 ss.

Ballins Industries <l3s 3d) and N.Z. Breweries (13s 6d) were weaker. Westland were steady at 30s.

N.Z. Refrigerating fell Is to 41s 6d and there were lower sellers of Canterbury Frozen Meat. Auckland Gas made one of the few gains of the week, rising 2d to 7s.

National Mortgage A shares were 6d down at Us. P. and O. shares had first New Zealand business for several months and were well down at 37s 3d. Lane. Walker, Rudkin Industries slipped 3d to 16s 6d but Felt and Textiles (N.Z.) were steady at 78s. Broken Hill Proprietary were 5s 6d down at 78s, Colonial Sugar £3 10s down at £6B, Carapark 9d down at 8s and H. C. Sleigh 10s down at 14s 6d. Mount Isa lost a further 3d to 55s 9d. Ansett sold unchanged at 6s. Australian retailers were also weak. Reid Murray dropped lid to 9s lOd and smaller losses were shown by Coles (sold at 13s 9d), Waltons (10s 9d) and Woolworths (13s 6d). Sharp Profit Rise Andrews and Beaven shares sold unchanged at 35s on Tuesday, two days before the annual accounts were mailed. The company reports record sales and profits and is planning a 50 per cent, increase in authorised capital. “The new shares will not be issued immediately. but will be available for issue as may be later determined. and in order to avoid any delays in making moves which could involve the issue of more capital.” says the chairman (Mr M. W. Beaven) in his annual review. There is a hint in this announcement of expansion by means of takeover bids. Farrier-Waimak gained Is to 20s and N.Z. Express were Is 3d higher at 26s 9d. Burnetts Holdings had latest business at Vs 7d. down sd. Frozen Products (6s 4d), General Foods 'l6s 3d) apd K.P. Drugs (£ 5 10s) were also weaker. Other industrials traded locally were unchanged. Hay’s notes continued to rise, selling at 32s 3d. L. D. Nathan were 3d down at 30s 6d and Woolworths (N.Z.) closed 4d down at 17s 3d.

SIR JOSEPH G D WARD. Bt„ Stock and Share Broker 'Member Chch Stock Exchange) 141 Hereford street. Christchurch. •Phone 77-905: P.O. Box 603. Commercial Bank Chambers —Advt. HAMILTON AND HAMILTON Geoffrey Hamilton. Derek G. Hamilton. Members of the Christchurch Stock Exchange. STOCK and SHAREBROKERS. 62 Gloucester street. Cables and telegram*: “Shares." P.O. Box 1036 Telephone 62-643.