COMMERCIAL Review Of Week’s Stock Exchange Transactions

Press, Volume CI, Issue 29827, 21 May 1962, Page 16

COMMERCIAL Review Of Week’s Stock Exchange Transactions

(Bv Ov* Commercial editor] Share prices continued to surge ahead last week, though without quite the same impetus as in the previous week. Turn* over was again at or near record level Recorded Christchurch turnover of shares, notes and rights was sbme 74,000, within a few hundred of the previous week’s record figure. This total is more than double the figure recorded in some of the quieter weeks last year.

New Zealand-domiciled shares made 67 gains and 18 losses—a ratio of 3.7 to one—compared with the previous week’s 57 to 14— 4.1 to one.

The slower rate of rise was only to be expected in a. week of less exciting company .news. The New Zealand Breweries modest dividend lift and equally conservative share issue was the -major announcement affecting the leaders.

The Reserve Bank’s index of New Zealand ordinary shares rose 36 points, or 2.8 per cent., to 1339 in the week to May 10. This figure shows a rise of 7.1 per cent, on the 1961 close, but is still 11.4 per cent, below the September, 1960, peak. A further 2 per cent, or 3 per cent, rise is expected in the week to May 17. Australian shares traded in New Zealand rose 2.3 per cent, to 1205 in the week to May 10, a rise of 4.2 per cent., since before Christmas. This figure is still nearly 22 per cent, below the September, 1960, peak indicating that Australian shares are still comparatively depressed. A Melbourne cablegram says that declining share prices and lower turnovers were features of last week's trading. “The previous week’s confident tone gave way to less spirited bidding and falls outnumbered rises. Price movements were mainly small.” Trading in oil shares was listless, the cablegram said. At the close of trading, industrial leaders -were selling below the previous week's levels. Declines In New Zealand Asutralian Consolidated Industries, 8.H.P., G. J. Coles and Woolworths all showed modest declines. Bank shares, however, were mainly firm, while Ampol. 1.C.1.A.N.Z. and Mount Isa

made modest gains. Frozen meat shares were the strongest section of the New Zealand market. Gear Meat rose Id, Meat Packers 3d, Canterbury Frozen Meat 2s, N.Z. Refrigerating 3s. South Otago Freezing 6d. Southland Frozen Meat Is and the unlisted Hellaby's Is. ' The averted dock strike in the United Kingdom helped market sentiment. New Zealand woollen and textile manufacturing shares were also in demand. Bonds Hosiery rose 6d. Bruce Woollens 3d. Felt and Textiles of New Zealand Is, Lane Walker Rudkin 6d, Mosgiel Woollen 9d. Tekau Knitting Is, Ross and Glendining Is and New Zealand Woolpack 6d. Kaiapoi Woollen B eased fractionally to 6s 7d. New Zealand Breweries have raised the year’s dividend from 5d to sjd a 5s stock unit, adding 10 per cent, to stockholders’ incomes from these shares. Directors also announced a bonus issue of one-for-10. at a premium of 2s 6d. (The previous issue in 1958 was in the ratio of one-for-eight at a premium of Is 3d). At 13s on the eve of the announcement the theoretical value of the rights to the new issue is 4s lOd. The market was evidently disappointed at the dividend lift and premium issue and the shares closed at 13s, a loss of 5d on the week. Dominion Breweries and Ballins Industries also eased. Quill, Morris announced a final dividend of 7A per cent.,

making 12$ per cent, for the year. This compares cloeely with last year’s 15 per cent, —covering 14 months' trading. Last traded in February, at 17s 9d. the shares have had buyers at 18s 6d for some time without attracting sellers. Retailers Retail and wholesale distributors’ shares were in demand. Hay’s made a good gain to sell at 28s 3d. This firm should benefit from the easing of hire purchase restrictions announced recently. National Electric and Ultimate Ekco were two manufacturers of home appliances whose shares made good rises, but Bell Radio fell sharply. Insurances continued to follow a firm trend in last week's trading. New Zealand Insurance continued strongly to finish the week Is 3d up on the previous week’s close, while New Zealand Insurance B improved 9d over the week. National Insurance and South British continued climbing to new peaks National closed 2s 6d up on the week before, while South British rose Is 6d and South British B Is 3d. Among New Zealand issues that made good gains last week were A.B. Consolidated. Claude Neon. Dunlop. Giant. Milne and Choyce. McKendrick Glass. McKenzies notes. National Electric. Ross and Glendining, Taniwha. Ultimate Ekco and Hellaby’s 1959 issue. New high levels for 196162 were reached by British Office Supplies. Carter Consolidated. C. and A. Odlin. Claude Neon. Dunlop N.Z., Fletcher. Giant. Hallenstein Brothers. Hay's, Henry Berry, Niven. J. Chambers. Milne and Choyce, Motor Specialties. McKenzie, McSkimming. Neill Cropper. N.Z. Newspapers. R. and E. Tingey, Reid Rubber. Ross and Glendining, Tappenden Motors, Ultimate Ekco. Weeks and Woolworths N.Z. Sharpest falls by New Zealand shares were made by Taupo Totara B. Vibrapac Blocks, Bell Radio and Lusterpid, down 9s at 26s ex dividend, in first sales this year. Stock Yields Average short term Government stock was firmer last week, while medium and long term stock was easier. Average short term yield to final maturity was £4 17s sd. down 8d on the week before, average medium term £5 4s lid, up 9d. and average long term £5 6s Id, up sd. Yields to maturity on Government stock traded tn Christchurch last week were: 3 per cent. 1960-63, £4 16s 6d per cent.; 3 per cent. 196365. £4 14s 4d per cent.; 3 per cent. 1964-66, £5 0s Id per cent.; 4 5-8 per cent. 196566, £5 la 3d per cent.; 4 5-8 per cent. 1966-67. £5 Is Id per cent.; 45 per cent. 196769. £5 5s 7d per cent.; 3? per cent. 15/9/1974, £5 5s 4d per cent, and 5 per cent. 1973-75. £5 6s 6d per cent. Details of transactions on the Christchurch Stock Exchange last week: Government stock. £3445 (against £4966 the week before); local body and company debentures, nil (£5160); preference, 1730 (1400': banks. 4027 (3149); breweries. 6100 <3478': frozen meat, 960 ( 723); gas. 1525 (400); insurance. 2470 (5350); loan and agency. 500 (1573); shipping. 100 (nil); woollens and textiles. 8424 (7429); Australian miscellaneous, 17.253 (18.391); N.Z. miscellaneous. 29.762 ( 30.857); mining. 250 (500); unlisted. 775 (1100); total. 73,876 (74,341).