Commercial Review Of Week’s Stock Exchange Transactions

Press, Volume CI, Issue 29775, 19 March 1962, Page 16

Commercial Review Of Week’s Stock Exchange Transactions

[By Our Commercial Editor)

The share market continued its steady upward course last week. New Zealand shares made nearly two gains for every loss and Australian shares were mainly steady.

The gains by New Zealand shares included some substantial rises while most of the falls were minor. Rises and falls were fairly evenly distributed among the leading Australian stocks.

Suggestions of an easing of the credit squeeze, and a more generous 1962-63 import licensing schedule than had been expected were mildly bullish factors in the market last week.

Although bank overdrafts fell £ll million in February the trading banks’ reserve ratios were sharply reduced to facilitate income tax payments on March 7.

Although trading banks’ deposits with the Reserve Bank were reduced by £5O million in the week after March 7 their borrowings of £l3 million from the Reserve Bank were repaid in the same week. This suggests improved liquidity for the trading banks and unless and until their borrowings are forced up to the £lO million level of January-February the banks’ customers iriould not find credit so difficult to obtain. Gas Shares The biggest rise of the week was the 18 per cent, gain shown by Auckland Gas. In the absence of any announcement of purely domestic concern it can only be assumed that the Kapuni ga. potential has appealed to the buyer as a long-term bull-point for North Island gas shares. Sanford, McKendrick Glass, the recently listed Lichenstein. British Office Supplies and Andrews and Beaven

made the week's best gains among New Zealand shares. Wright. Stephenson shares made their first recovery this year in sales 2s up to 36s Dominion Breweries firmed for She fourth successive week. New Zealand shares that readied their highest point for 1962 were Auckland Gas. Northern Steam. Andrew* and Beaven, J. Wattle, Norvic Shoes and Wilson's Cement. Wright, Stephenson B and Unit Subdivisions made the sharpest falls among New Zealand shares. New Zealand shares that fell to their lowest point this year were Newton King 10s paid, Wrigfht, Stephenson B, Taupo Totara. General Foods, R. and E. Tingey. Transport Nelson, United Empire Box, and A and T. Burt. Best Gains Among overseas shares National Bank of Australasia contributing made the best gain, while National Bank of New Zealand, Ampol 1963 notes, E Z Industries. H C Sleisih. Henry Jones. Myers. National Consolidated and Waltons 6 per cent notes reached their highest point this year H C Sleigh improved after the announcement of the planned merger with Bitumen and Oil Refineries Assets of ttie two companies total £6O million and the merger will be the largest in Australia's history. Myers gained on recent trading after the half-yearly report issued early last week showed higher sales and profit. Australian shares to reach their lowest point this year were Feltex, A.MJ.. British Tobacco, Broken Hill Proprietary, Clyde Industries. Concrete Industries, and Taubmans. British Tobacco was obviously suffering from market reaction to the release the week before of the Royal College of Physicians’ report linking smoking and lung cancer. London Market Hopes of a further cut in the bank rate and suggestions that the coming Budget will not be as tough as expected brought more money into the London investment market last week. There was considerable

improvement from the previous lethargic undertone, especially in the gilt-edged section. Sterling had strengthened perceptibly since the week before and the pound reached its highest point for three years. Increased selling pressure caused industrial shares to decline on the Melbourne Stock Exchange last week Some of the leading stocks suffered the biggest falls, according to the stock exchange. Interest in oil shares was not as great and with the exception of Australian Oil and Gas, which rose sharply, most of the remaining issues held steady. Turnover for the week In industrials rose sharply, but declined throughout the mining group. Over the whole market falls easily exceeded rises. Stock Yields Yields to maturity on Government stock traded in Christchurch last week: 4 3 i per cent., 1963-64. £5 Is 5d per cent.; 3 per cent.. 196466, £5 3s 8d per cent.; 3% per cent., 1965-66. £5 7s per cent.; 4’4 per cent., 15 5/1965. £5 3s 8d per cent.; and 4 5-8 per cent., 1966-67. £5 5s Id per cent. Details of transactions in Christchurch last week: Government stock, £4750 (£4300 the week before); local body and company debentures, £6lOO (£8300); preference. 700 (2109); banks, 801 (145); breweries, 9050 ( 4300); frozen meat, 1930 (214); gas, 900 (400); insurance. 1606 ( 986); loan and agency. 1605 (1815); shipping, 108 (nil); woollens and textiles. 7135 (3266); Australian miscellaneous, 15.555 (13.819); New Zealand miscellaneous. 13.396 (13.474); mining. 900 (200); unlisted, 4900 (200); total, 58,586 (40,928).