COMMERCIAL Review Of Week’s Stock Exchange Transactions

Press, Volume CI, Issue 29911, 27 August 1962, Page 5

COMMERCIAL Review Of Week’s Stock Exchange Transactions

(By Our Commercial Editor]

Trading on New Zealand stock exchanges last week was unsteady and uncertain with more losses than gains over the whole five days’ trading. Barely holding its own when business started for the week the market deteriorated steadily to the close.

Over the week New Zealand shares were almost steady, with 29 rises to 31 falls, but it was the overseas issues that gave the market the weaker tone with two falls to every rise.

Brightest day of a dull week was Monday when there were 14 rises to 13 falls, but it was New Zealand shares that propped up the market with 12 of the rises while overseas issues provided six of the falls.

Turn-over in Christchurch fell 6.9 per cent, from 51,016 the week before to 47,508 last week. Local buyers turned vegetarian for the week and there was no trading in frozen meat. The week before frozen meat turn-over was 2600.

Government stock, local body and company debentures and Australian and New Zealand miscellaneous shares were in less demand than the week before, but there was more interest in loan and agency, and woollens and textiles.

New Zealand Insurance did tlhe most to add some colour to the week's trading. The old shares rose 4s (id to a peak 90s tor the week, while the B shares added 4s to 89s.

Starting cautiously on Monday, both the old and B shares rose 6d. Next trading was on Wednesday when the B shares advanced another 9d. On Thursday the old shares gained 2s and the B shares Is 9d Next day both made further gains, the old shares adding 2s and the B [shares rising Is. Good percentage gams among New Zealand shares werf made by the Dominion Farmers' Institute, up Is to 12s 6d. and National Pictures, 2s 6d higher at IBs 6d. in first business for some weeks.’

Sharpest falls among New Zealand shares were made by Wellington Woollens. Vibrapac Wellington and the unlisted Finance Corporation. S.P.A.N.Z. lost ground again, while rights to Baltins Hotels and McKendrick Glass were also easier. Overseas Vulcan Industries and Emperor Mining made the only worth-while gains among overseas issues during the week Anthony Hordern, in first business for some months, lost 4s 9d, Colonial Sugar Refining rights lo . Is, and Thiess Holdings 2s 4d. Most other movements, both New Zealand and overseas, were slight.

First ex rights business of Wool worths was written at Ils 8d in Wellington on Monday, but the price fell Id to Ils 7d o.n Tuesday and Wednesday, recovering to Us 8d tor the close of the week’s trading. Bank of New South Wales, both Australian and New Zealand registered shares, were easier than at the close of the week before. Australian register shares sold only on Tuesday at £34 in Auckland and Wellington, 10s down on sales t.he previous Thursday New Zealand register shares lost ground early in the week, eased further, and then closed 15s down on closing rights of the week before. Company news, provided some bright spots during the week Baillie Motors, of Hastings, put an issue of 100.000 new shares on [the market at 10 a m. on Monday, then closed it almost immediately because it was oversubscribed.

Applications tor the shares poured in from investors all over New Zealand. Directors said 687 investors had applied tor 325,000 shares.

Everyone who applied should get an allotment, according to directors, and all applicants should have their allotment letters by today. News of a public issue of 100,000 ordinary 10s shares at par by Allen Industries. Ltd., Auckland calender manufacturer, printer and importer, aroused a certain amount of interest in Christchurch.

However, it was Learned late in the week that placement of shares was to be made only in the Auckland region. Nothing in the earlier announcement had indicated that the placement would not be made throughout tihe country.

N.Z.F.P.

First consolidated accounts of NZ. Forest Products, along with its now fullyowned subsidiary. Whakwtane Board Mills, Ltd., showed group profit of £ 1,402.146 in the year to March 31. This took in a full year of Whaka-tan-e Board Mills operations Last year N.Z. Forest Products passed the £lm profit mark on its own with a net profit of £1.016,713. A warning came from the chairman of directors (Sir David Henry) that trade prospects indicated that the company must, more than ever before, increase manufacturing efficiency and equip itself adequately to move into export markets with greater enterprise in the future. Tekau Knitwear. Ltd., Timaru. and its subsidiaries. Rutherfords, Ltd., and Tekau Lodge. Ltd., showed a 64 1 per cent, rise in profit to £48.468 in the year to May 19 in accounts released last week. This was a recovery on the setback to Tekau last year, when its 1960 profit of £31.850 slipped to £29,531. Wilkins and Davies Construction Company. LtdWellington. accounts to March 31 showed a 27 per cent, easing in net profit to £53.830 after higher depreciation and taxation. Little more than a month ago Wilkins and Davies directors announced that, subject to audit, net trading profit before tax was £111.414. representing a 72 per cent, increase on the year before’s £64.843 trading profit.

Selective Trading in shares on the Melbourne Stock Exchange last week was along selective lines with buyers showing a preference for stocks of companies which have released good yearly figures, according to a Melbourne cable. The market was generally in line with the pattern of recent weeks with the variable and uncertain tone still evident. Towards the close of trading a firmer note developed following reports of stronger

PRICE CHANGES LAST WEEK

In the following table the prices given are those paid in latest recorded New Zealand business. They are compared with the latest prices up to the previous week’s close, making allowances, where necessary, for dividend payments.

markets in New York and London. Falls exceeded rises slightly and turnover declined.

Drug Houses reported record profits, while Johns and Waygood. Ducon Industries and Bitumen and Oil all announced increased earnings. When trading ended for the week prices of market leaders were barely steady at the levels of the week before.

Activity on London stock markets last week was on a reduced scale, but the general performance was satisfactory, according to Reuter’s financial correspondent. Industrials recorded a useful advance and the rest of the market improved with the notable exception of gold shares which were neglected and were widely lower on balance.

Among helpful factors was the firmness of Wall Street and expectations that the Government will eventually introduce measures to stimulate the economy. Stock Yields Government stock yields were variable last week with average short and medium term yields down and average medium term yield up. Average sho# term yield fell 8d to £4 15s 3d and average medium term 6d to £5 3s 6d. while average long term yield rose 2d to £5 4s.

Yields to maturity to Government Stock traded in Christchurch last week: 4., per cent. 1952-63. £4 17s 6d per cent, and £5 2s Od per cent.; 4 3-8 per cent. 15'11/1963. £4 16s lid per cent., and 3 per cent 15 5/1964-66. £4 10s 3d per cent.

Details of transactions on the Christchurch Stock Exchange last week:—Government stock. £3200 (against £4500 the week before); local body and company debentures,' £lOOO (£12.700); preference, 785 <2100); banks. 578 )2800); breweries, 9006 18133): building societies, nil (30); frozen meat, nil (2600'; gas. 516 ( 955); insurance. 935 (950); loan and agency, 4100 <865); shipping. 250 (nil); timber, nil (200); woollens and textiles, 4307 (2736): Australian miscellaneous, 11.339 >10.038); New Zealand miscellaneous, 14.292 (19.360); mining, 500 (100); unlisted, 900 (149); total, 47.508 (51,016).

RISES New Zealand Shares Price Var’n. s d s d N.Z. Ins. 90 0 4 6 N Z. Ins. B 89 0 4 0 Sth. Br. 58 6 0 6 Sth Br. B .. 53 0 0 3 C.F.C.A. 11 0 0 3 Wr. St. debs. 31 6 1 0 Bruce B 12 7 0 1 Feltex 74 6 2 0 Feltex rts. . • 44 0 1 6 Al. Harvey .. 30 6 1 0 C. Neon 49 6 0 6 Odlin 57 6 1 6 Con. Bk. 21 0 0 6 Frm. Inst. .. 12 6 1 0 Donaghy 46 3 0 3 L'stein 12 9 0 3 Fletcher B . 17 6 0 6 Froz Prods. 3 0 1 Giant 10 9 0 3 Niven 46 3 ‘0 9 K P Drug .. 43 0 0 6 McKens. 14 9 0 3 M K.M 8 0 0 2 Nat Elec. .. 16 3 0 3 Nat. Pic. 13 6 2 6 N Z. Paper .. 32 0 0 9 Skellerup 8! 0 1 0 Unit. Sub. .. 3 10 0 1 Bell Radio .. 13 6 •0 6 C. Petrous .. 24 3 0 3 Otago Frtns. 7 6 0 3 Overseas A.N.Z. Shares 43 3 0 3 C.B.A. 17 0 0 2 P. and O. 21 0 0 6 Ansett notes 3 9 0 3 Clvde Ind. .. 8 6 0 2 E.Z. Ind. 11 0 0 3 Vu'can 9 6 0 11 Walton 7% 8 11 0 2 Emperor 6 3 1 1 Mt. Lyell 2 2 0 0i FALLS New Zealand Shares Dom. Br. 16 6 0 2 N.Z. Br 11 4 0 2 Wr Steph. . 35 9 0 3 Manaw. 11 9 0 3 Wgtn. Wool 31 6 2 6 Ballins H. rts 2 6 0 3

FALLS New Zealand Shares Price s. d. Var’n s. d Begg 12 7 0 2 Dunlop 49 9 0 3 C.P.D. 20 11 0 1 Frms Trad. 83 6 1 0 Fletcher 38 0 0 3 Gen. Foods 12 8 0 1 McKen. Glass 21 6 1 0 McK. Gl. rt. 1 6 1 0 O’Brien 8 9 0 2 Mtr. Specs. 13 1 0 2 McKend. 9 3 0 2 N. Cropper 16 9 0 3 For. Prods. 40 3 0 6 N.Z. News . . 44 6 0 6 Nthn. Roller 37 6 0 6 Rubb. Dist. 18 6 0 3 Rickstan new 6 0 0 3 S.P.A.N.Z. 2 6 0 6 Truth B 43 5 0 7 T. and J, 11 0 0 3 V’pac. Wgtn. 21 0 1 6 Wilson Malt 16 0 0 6 N.Z. Petrol .. 4 0 0 6 Fin. Corp. .. 20 0 1 0 Hellaby ’62 47 6 0 6 Overseas Shares Bk. N.S.W. N.Z. £33? 15 0 Bk. NSW. Aust. £34 10 0 Nat. Bk. N.Z. 30 0 0 6 Ansett 4 5 0 2 A. Hordern .. 20 0 4 9 Ampol 10 3 0 1 A.W.A. 17 0 0 3 A.C.I. 54 6 1 0 C.S.R. Aust. 41 0 1 0 C.S.R. NZ 41 0 1 0 C.S.R. rts. .. 14 0 1 0 B.H.P. 47 0 0 6 Factors 1 6 0 1 Sleigh 9 6 0 9 Hooker 3 4 0 3 Reid M. 2 9 0 3 Thiess 9 2 2 4 W. R. Carp. 29 0 0 6 Waltons 21 1 0 2 W’wths. rts. 6 9 0 3 B.H. Sth. . . 7 0 0 1} R.M.C. 13 ia 0 7 W’wths. S A. 33 0 0 6 • Allowing for dividend.