COMMERCIAL Review Of Week’s Stock Exchange Transactions

Press, Volume C, Issue 29467, 20 March 1961, Page 12

COMMERCIAL Review Of Week’s Stock Exchange Transactions

IBy Out Commercial Bailor) Heavy turnovers on New Zealand stock exchanges last week were accompanied by an easing tendency, in contrast to the firmer tone apparent the previous week. Rights to several New Zealand share issues were particularly active. The current and forthcoming new issues on both sides of the Tasman are undoubtedly a bear factor in the market.

Prices in Australia tended to weaken during the week. A Melbourne cablegram reports heavy trading in rights, with G. J. Coles, at 6s 2d, giving a yield on the new shares of almost 5 per cent. This is the highest obtainable for many years. “Blue chips” did not suffer, but companies engaged in land development and other forms of financing fell consistently, the cablegram says.

Turnover in Christchurch last week comprised 56,000 shares and 14,000 rights, compared With 54,000 shares and 9000 rights the previous week. Most of last week's business was done in Early Bros, rights, while Alliance Textiles rights and Coles’ rights were also active. Soft Spots Frozen Meat, insurance and loan and agency shares were again the weakest sections of the New Zealand market. Retailers, wholesalers and ■other distributing organisations were firm. Textile manufacturers were strongest among the manufacturers. Whakatane shares, now delisted, were keenly sought last week. A parcel of these sold in Wellington on Thursday at 70s (their highest price as listed shares), although the market for Forest Products has eased since Whakatane disappeared from the official list. At 37s 3d for Forest Products. the market for Whakatane shares still offers a cheap entry to Forest Products. One Man, One Job? The New Zealand Society of Accountants will be asked to decide at their annual conference this week whether their members should in future be permitted to take up sharebroking. As Christchurch is perhaps the stronghold of sharebroker-account-ants in New Zealand, it is particularly appropriate that the issue should be on the agenda for a Christchurch conference. The proponents of this amendment to the society's rules no doubt consider that no sharebroker-accountant can do justice to both professions. They advocate specialisation in one field or the other, in line with overseas trends. With the growth of business in both fields in New Zealand since the war .the amendment would probably cause little hardship in the four main Centres. It would, however, pose real problems in the future for country brokers, most of whom are public accountants. In small towns providing a living for one or two public accountants who else would be qualified for ap-

h pointment as a country memfl ber of the exchange? _ The accountants’ move raises.the wider question of d qualification for the sharec. broking profession. Whether s of not recruitment from the ranks of public accountants is / barred in future, the Stock ' Exchange Association might well consider whether the present pre-requisites for membership are sufficient. They relate mainly to the d applicant’s personal integrity e and financial standing. s Are those requirements—t. framed in the days when the d investing public comprised a - small, well-informed circle of e business and professional it men—sufficient for the era of the small investor? Or does . the greatly increased volume it of turnover today warrant d more specialisation and train,t ing. at least for the metros politan broker? These quese ’ions should be on the agenda s for the association’s next e conference. Gilts Weak " Government stock was p again weak. Yields to maturity on issues traded in Christchurch were as follows: Three and three-quarter per cent. 1962, £4 14s 5d per cent.. £4 17s 3d per cent, and £4 y 15s Id per cent.: 4J per cent, d 1962, £4 12s 8d per cent.; 3 - per cent. 1961-63, £4 Ils 7d r per cent.; 4.1 per cent. 1962-63. n £4 14s Od per cent. e Details of tournover on the - Christchurch Stock Exchange - last week are as follows: Government stock £6400 s (£9lOO the week before': it local body and company £3OO e (£750); preference 2045 h ’5250); banks 1600 (46); breweries 1200 (1375); builds ing societies nil (250): frozen s meat 3182 (950): gns 400 (nil): t insurance 1800 (588); loan t and agency 4825 (4475): tex- - tiles 7626 (4862); miscellanee ous Australian 23.165 ( 22.623): r miscellaneous N.Z. 23,308 - (19.288); mining 200 (nil); unlisted 211 (1800); total s 69.562 (61.507). d Preference shares were int active. Ballins sold at 19s 3d. e D.I.C. at 19s 6d, and Mating n at 16s 6d, B.H.P. were unusually e active and closed at 80s—a s. gain of 6d on the week. Myer - Emporium, up Is 6d at 32s 6d, - was the only other Austrao lian share to Improve. e A.N.Z. Bank fell Is to -40 s 6d, Felt and Textiles 5d

to 7s 9d. Ampol 2d to 13s Id, Australian Motor Industries Ud to 4s fid, Factors Id to 4s, Reid Murray 6d to 6s 8d and Mount Isa 3d to 53s 6d. Australian Consolidated Industries, Clyde Industries. Colonial Sugar, Hooker. W. R. Carpenter and Woolworths were unchanged. Insurance Standard Insurance shares had first local business since the announcement of the passed interim dividend. Falling 4s to 345, they reflected the market’s disappointment. No further explanation of their recommendation has been offered by the directors. Other shares in the insurance sections which weakened were National Insurance (down fid to 22s fid) and N.Z. insurance (down 6d at 655). South British old and B shares rose 3d to 53s 9d and 53s 3d respectively. Vibrapac Blocks in one of their rare downward moves lost Is to 27s 6d—probably in anticipation of a drop in building activity. Other New Zealand shares sold at lower prices were:— New Zealand Breweries i6d to 12s 6d>, Canterbury Frozen Meat (Is to 36s 6d). N.Z. Refrigerating <6d to 395). Christchurch Gas (6d to 18s 6d), National Mortgage A (approximately IJd to 8s 3d ex dividend); General Foods (3d to 15s 6d); McSkimming (Is to 41s), Forest Products (3d to 37s 3d); and Woolworths (N.Z.) (6d to 15s 9d'. Alliance rights were very firm and closed 4d up at 5s 4d. Bonds rose Id to 15s lOd, Cory-Wright and Salmon 3d to 31s 3d, J. Wattie Canneries 2d to 12s 3d and M.C.P. Id to 7s. N.Z. Farmers’ Co-operative closed 3d up at 22s 3d. Hay’s rights 2d up at 13s 3d. McKenzies 2d up at 17s 6d and John Burns Is up at 765.