Review Of Week’s Stock Exchange Transactions

Press, Volume CI, Issue 29745, 12 February 1962, Page 15

Review Of Week’s Stock Exchange Transactions

[By Our Commercial Editor]

Mr Menzies’ “Little Budget” was the big news of the week indeed, the best news of the vear to date—for investors last week.

The measures announced to stimulate the Australian economy were favourably received by business and labour leaders, and the sharemarket’s immediate reaction was to push up prices of shares in all categories.

On this side of the Tasman the first impact of the Australian measures was felt on Wednesday, when prices of most of the Australian leaders rose sharply. New Zealand share prices, which had been very firm earlier in the week, were steadier in the last three days’ trading.

Overseas-domiciled (mostly Australian) shares made three and a half gains for every loss in New’ Zealand business last week. New Zealand shares made one and a half rises for every fall.

The principal measures announced by Mr Menzies were a 5 per cent, cut in income tax. provision of more money for public works, a cut from 30 per cent, to 22i per cent, in sales tax on motor vehicles, increases in unemployment benefits and aids to housing construction. The “Australian Financial Review,” which has been critical of Mr Menzies’ policies for the last 15 montlis, raid on Thursday: "For the last year and a half the signal has been at ‘stop' and for much of the time the economy has actually been in reverse Now it is ‘go’ again—full speed ahead." 3 A p.c. Rise Australian share prices last week rose 31 per cent, and are now within 8 per cent, of their September, 1960, record level. Australian shares were quiet in New Zealand trading on Monday, when there ■were no price rises and four falls. On Tuesday eight overseas shares rose and three fell, and on Wednesday—after Australia's ‘‘Little Budget"—there were 17 rises and only five falls. On Thursday there were no fewer than 21 rises and no falls, and on Friday 17 rises and six falls. New Zealand share prices are now about 19 per cent, below’ their September. 1960. peak London prices are 17 per cent, below their peak, and Wall street prices are 2J per cent, below their peak. Active Market Recorded turnover in Christchurch reached the highest weekly total since August last year. Share turnover was nearly 50 per cent, up on the previous week's modest figure, but Government stock turnover was reduced. Breweries, insurance, loan and agency, woollens and textiles and New Zealand miscellaneous shares all showed large increases Surprisingly, Australian shares recorded one of the smallest increases in turnover, but no doubt this section of the mar. ket will be active this week. The two large breweries’ shares eased fractionally last week Gear Meat slipped Id. but New Zealand Refrigerating and Waitaki Farmers Freezing were very firm and there was keen buying interest in other frozen meat shares

The three insurance shares again made good gains The loan and agency section was a mixed bag. Far-, mers’ Auctioneering and Newton King made small gains, but Wright. Stephenson, Dalgety and National M'rtgage A lost ground.

Woollens and textiles were again very firm Wholesalers and retailers shares were patchy, but with rather more gains than losses Some spectacular gains were made b"y Australian •hares. Some of the largest rises were recorded by Bank of New South Wales. C.B A., Kauri, Australian National Industries, Australian Chemi-

cals. Boral, B H P., British Tobacco, Blue Metal, Concrete Industries, Email. Henry Jones, H. G. Palmer, I.C 1.A.N.Z., Moulded Products, Reid Murray, Repco and Woolworths. Brambles Industries in first business for four months fell 3s 7d. ex dividend, 16s. Colonial Sugar Refinning lost 30s of recent gains to sell at £52 10s.

Yields to maturity on Government stock traded in

CLristbhurch last week were: . 3 per cent. 1960-63. £5 5s 9d ( per cent.: 4J per cent. June. ( 1965. £5 7s 8d per cent.; 3j per cent 1965. £5 8s 6d per cent.; 3 per cent. 1963-65, £5 6s s<j per cent.; 3 per cent. 1964-66. £5 4s 9d per cent., ' and 4 5-8 per cent. 1966-67,1 £5 6s 5d per cent. Details of transactions on; 1 the Christchurch Stock Ex-! change last week are:—Government stock £3355 (against!: £20.200 the week before); 1 local body, £2OOO (nil); pref.,: 1200 (300); banks. 845 (215); breweries, 4100 (1900); frozen 1 meat, 600 (1800); gas, nil • 300); insurance. 2720 (650>; loan and agency, 1685 (1197);' woollens and textiles. 5943 (1224); Australian miscellaneous, 24,119 ( 20,218); New | Zealand miscellaneous, 19,121 (14,982); mining, 200 (250);j unlisted, 100 (150); total,' Yields on short and medium! term Government stock rose! last week. Average short term yield is £5 6s 9d. medium term £5 6s 7d, and long term £5 6s 3d.