Review Of Week’s Stock Exchange Transactions
tßj» Our Commercial Saitor) Share prices continued to fail, but less sharply last week.
Forty-five New Zealand shares, notes or rights traded during the week had latest business at lower prices than in their most recent business np to the dose of the previous week’s trading. Nine New Zealand issues were firmer. The ratio of five falls to every rise compares with a ration of seven to one the previous week and six to one two weeks ago.
Australian shares made three losses to every gain in New Zealand business, although the Australian indices of share prices show almost no movement over the week.
Most of the rises recorded in Australia were by second-rank shares. The market leaders, which are the most active Australian stocks in New Zealand, were mainly weaker.
After Labour Day the market opened quietly, as is usual. It was also very weak —no New Zealand shares improved while 10 sold at lower prices. Turnovers improved for the rest Of the week. New Zealand shares were not so weak and on Friday there were fewer than three falls for every rise. Turnover for the week in Christchurch was about the same as the previous week's higher total, allowing for the loss of one day’s trading. Last week, however, there was a much greater proportion of New Zealand shares in the turnover. Government stock was also much more active. Insurance Firm The long-continued decline in prices of leading New Zealand insurance shares was arrested last week. South British Insurance finished the week 3d up at 48s 3d. New Zealand Insurance old shares sold on Thursday at 62s—-down 6d—but a later sale of the B shares in Auckland at 62s—up 6d—suggests that these shares, too, may have bottomed. National Insurance. at 225, lost 6d over the week. These shares sold down to 20s 3d earlier this year. Isolated gains were made by New Zealand shares—mainly minor issues—in other sections of the quotation list Apart from the insurance shares. there is nothing to suggest that the market generally has reached bottom. Three new share issues will come on the market next month. In addition to the Wilson and Horton issues <400.000 10s shares at 4s premium) and the Neill Cropper issue (150,000 10s shares at 2s premium) already announced, the Paramount Housing issue of 450.000 5s shares will also be on the market this week. The sums sought in these three issues total £482 500. including premiums. The
terms of the Paramount issue do not require payment in full a® payments will be till August 1 next year spread over nine months. Even so, the market is being asked to commit itself to a large outlay in the next month or two. If these three issues are filled they must divert some buying from other sections of the market Sharp Changes Northern Roller Milling and Hellaby’s Meat, in first business for some time, recorded appreciable falls last week. No fewer than 15 shares fell Is or more, while six lower-priced shares also fell sharply. The week’s notable losses were made by Alliance Textiles. A. S. Paterson, Ballins Industries, C. and A. Odlin. Consolidated Brick, Cyclone Industries rights. Dominion Fertiliser, Golden Bay (ex Waitomo). Henry Berry, John Duthie, Kempthorne Prosser (New Zealand), Drug, M. K. Manufacturers rights. National Electric. Otago Daily B, Phillips and Impey, R. and E. Tingey, Reid Rubber, Tasman, Vibrapac Blocks and Winston e. Of the Australian issues traded in New Zealand, the best gains were made by A.WA, H. G. Palmer and Mount Lyell. A Neiw Zealand sale of British Tobacco at 20s 3d—7s 7d down on last New Zealand business for four months—was a sharp reminder to investors that even "blue chips” are not gilt-edged. Regarded for many years as one of the soundest equities in Australia, this stock fetched up to 41s last year. Competition from the vigorous Rothmans concern has eroded British Tobacco’s market position and the latest quarterly dividend was reduced.
Other overseas domiciled issues which fell sharply in New Zealand business last week were National Bank of New Zealand, Australian National Industries, Herald
and Weekly Times and Mount Isa. The strike at the company’s mines has cost Mount Isa the loss of thousands of tons of production. Details of transactions on the Christchurch Stock Exchange last week, with figures for the previous week in parenthesis, are: Government stock. £10.745 (£7125); local body and company debentures and stock, £2900 (£2600); preference shares. 1150 (1000): banks, 555 (50); breweries, 1300 (5440); frozen meat, 600 (200); gas, nil (200); insurance, 650 (500); loan and agency, 600 (360); woollens and textiles, 2296 (6500); miscellaneous (Australian), 10,910 (18,037); miscellaneous (New Zealand). 15.704 (10.772); mining, 800 (300); unlisted. 1100 (614); total, 35,665 (44373).
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Press, Volume C, Issue 29657, 30 October 1961, Page 18
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791Review Of Week’s Stock Exchange Transactions Press, Volume C, Issue 29657, 30 October 1961, Page 18
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