COMMERCIAL Review Of Week’s Stock Exchange Transactions

Press, Volume C, Issue 29669, 13 November 1961, Page 18

COMMERCIAL Review Of Week’s Stock Exchange Transactions

New Zealand share prices showed a firmer trend last week than in any previous week this year. Rises among New Zealand shares exceeded falls by almost two to one. the highest ratio of the year. The market leaders were nearly all firmer by the dose of the week and there were many more sharp rises than sharp falls.

The firmer trend noted at the end of the previous week was maintained all through last week’s trading. On Monday there were 14 rises and seven falls among the New Zealand shares traded. This two-to-one ratio was maintained until Thursday when the ratio was three-to-one. On Friday the ratio was again two-to-one. Overseas domiciled shares were also very firm last week, with rises exceeding falls by nearly two-to-one. The origin of this trend was "the stronger demand for Australian shares on their home market.

On the Melbourne Stock Exchange rises easily outnumbered falls in substantially increased turnover last week. Main reason for the higher turnover was heavy trading in rights to new issues of Broken Hill South and North Broken Hill. Wall Street Firm Wednesday's trading on the New York Stock Exchange (was the heaviest since April 4 and prices made one of ■I their best gains of the year, j A New York cablegram i says the news of General .Motors’ first year-end extra 1 dividend in six years, ■coupled with recent technical improvement, touched off I the buying. ' In London, prices also recovered, though less spectacularly than in New York, ion Wednesday. Sentiment was helped, according to a London cablegram, by the I mildly optimistic speech of •the Chancellor of the Exchequer in the House of ; Commons, and by one or two better reports from company board rooms. “The Chancellor’s decision ■ to bring more capital profits into taxation revenues on short-term conditions is still one of the main talking points in city circles,’’ the message says. “It is undoubtedly still influencing I markets. 1 “There is developing one I school of thought, which now .holds that tax on realised I gains is bound to be good for I shares because it will disisuade investors from selling. They are therefore suggestI Ing that the Chancellor’s new measures might not be ■ as bad as they are painted. I “The only thing they are I not sure about is whether, once the tax is imposed, succeeding chancellors might I not extend its operation from short-term transactions to long-term.’’ Butter Prices The immediate improvement in London butter prices after the announcement of measures to curb the rate of . United Kingdom imports was heartening news far New Zealand. London prices ; are still well below what is required to justify the basic price for butterfat in New Zealand; further substantial rises, maintained while the remainder of the 1961-62 New Zealand production is marketed, are required to

balance the dairy industry’s account. Nevertheless, the move by the British Government is the best news on the economic front New Zealand has had in months. The underlying significance of the move may be in the preferential treatment accorded New Zealand, but withheld from Australia. Does it imply similar consideration for New Zealand in Britain’s bargaining with the European Economic Community? At least it suggests that New Zealand lost nothing by not adopting the “tough” line pursued by Australia and Canada with Mr Sandys earlier in the year. The butter situation, however, cannot have been solely responsible for the firmer market for New Zealand shares last week. Newton King shares, more susceptible than most others to the influence of dairy prices, actually lost 6d on the week. Special factors affected shares in one or two categories last week. Canterbury Frozen Meat, Gear Meat, New Zealand Refrigerating and Southland Frozen Meat were all firmer—presumably because of the id a lb increase in killing charges this season. This increase will add some £30.000 to the gross revenue of a freezing works killing a million lambs in a season. Alliance Textiles rose 5d after the announcement of a higher dividend. Lane, Walker. Rudkin shares rose even more sharply, in sympathy. Cheerful Company news was, on the whole, cheerful; no dividends were reduced and annual accounts showed steady or higher profits. The Wilson and Horton issue was, as expected, heavily over-sub-scribed. Wilkins and Davies announced a public issue (presumably of up to 100,000 shares) at a modest premium. The Paramount Housing issue has apparently not yet been filled. On Friday Printing Inks and Machinery (Holdings), Ltd., of Auckland, announced a merger with Morrison and Morrison, Ltd., Christchurch printing ink manufacturers, and the news that a new joint £200,000 company will be formed. Printing Inks shares popped into trading at 29s early last month, were steady throughout October, firmed to 30s last

Monday, then rose to 32s 6d in sales at Auckland on Friday. Last week’s pronounced reversal of the long-con-tinued decline in New Zealand. share prices seems to have no obvious explanation. Perhaps the market feels the fall has gone far enough, and that all New Zealand's current and expected difficulties have been anticipated in the present level of prices. Gilts Slower Trading in Government Stock on the Christchurch Stock Exchange last week fell sharply to £l9OO from £19.245 the previous week. However, yields were firmer. Yields to maturity: 3 per cent., 1963-65, £5 Is 9d per cent.; 4 3-8 per cent., 1963. £5 Is 9d per cent; 4| per cent., 1965, £5 3s Id per cent. Details of transactions on Christchurch Stock Exchange last week are: Government Stock. £l9OO (against £19,245 the previous week); local body and company debentures. £2200 (£2600); preference, 1475 (1650); banks 205 (210): breweries, 1006 (3675); building societies, nil (150); frozen meat, 389 (770); gas, 100 (585); insurance, 850 (2400); loan and agency, 2742 (3731); timber, 400 <100); woollens and textiles, 1100 (1850); Australian miscellaneous, 8834 (19,057); New Zealand miscellaneous, 24,475 (21,442); mining, nil (1200); unlisted. 140 (950); total 41,716 (57,770). RESERVE BANK Sterling exchange held by the Reserve Bank rose last week, but other exchange fell. Overseas investments were down, but holdings of gold were unchanged. Main items from the latest week's return with the previous week's figures are as follows:

Australian Wool For East Europe The Eastern Europe communist bloc bought more wool at the Sydney sales a fortnight ago than at any time since April, Dalgety's news service says. U.K. purchases were the largest this season. Wool bought by the Com: mon Market and Japan was well below quantities taken in recent weeks. LONDON METALS MARKET (N .Z.P.A.-Reuter—Copyright) LXJNDON, November 10. Latest London metal prices are : Buyers Sellers

Angus and Robertson.—Angus and Robertson. Ltd., publishers and booksellers, report a first consolidated net profit of £98,129 for the year ended June 30. In addition, there is a capital profit of £20,072. (Melbourne. Nov. 10.) McLeod Brothers.—McLeod Brothers, Ltd., Dunedin, recommend a final dividend of 16d a share, plus a bonus dividend of 9d a share from capital profits: payable December IL ex dividend November 27. (P.A) Pools Win.— A 30-year-old Waihi farmer, who wishes to remain anonymous, received advice by cablegram at the week-end that he has won £29.980 in a British football sweep.—(P.A.) CX Gases Dividend.— The Commonwealth Industrial Gases, Ltd., will pay a final dividend of 7 per cent, making II per . cent, for the year ended September 30. The full rate is payable on capital increased from £4m to £sm by a one-for-four bonus issue. Last November the company made a one-for-one bonus issue from reserves and unappropriated profits involving the creation of 100.000 new ordinary shares. 37.990 of which were classified as B ordinary shares. DRENCHING DOES FARMER GOOD “Thq tapeworm problem in my stock has been solved,” he reported. •’C.M.R. New Formula NCA Drench cleared it in no time.” “Economical, too,” he said. ’*. . . costs less than jd a bead.” C.M.R. New Formula NCA Drench can do every tanner a lot of good—saving him trouble and money. Cooper, McDougall and Robertson IN.Z.), Ltd. Otahuhu. Auckland.

Liabilities Nov. 8 Nov. 1 £000 £000 Bank notes . ■ 83.509 83.05© Demand LiabilitiesState .. 13.812 15,891 Marketing .. 3.393 .3,423 Tr. banks .. 55.258 53,993 Other .. 2.102 1.661 Assets Reserves— Gold .. 242 242 Sterling exch. 15.138 8,338 Other exch. 444 737 Investments— Overseas .. 23.825 25,825 In N.Z. .. 77,153 77,133 Advances— State .. 4.489 7,635 Market, org'ns 24,112 25,362 Other .. 20.325 19.965 Other assets 1.213 1,601

a ton a ton £ s. d. £ s. d Copper— Spot Tin231 15 0 332 0 0 Spot Lead— 972 10 0 973 10 0 Spot Zinc— 60 5 0 60 10 0 Spot 68 10 0 68 12 6