Review Of Week’s Stock Exchange Transactions

Press, Volume CI, Issue 29989, 26 November 1962, Page 18

Review Of Week’s Stock Exchange Transactions

«Bv Our Commercial Editor) Turn-overs rose sharply on New Zealand stock exchanges last week as prices of both New Zealand and overseas shares improved. New Zealand industrials and retailers were particularly active at higher prices. Over the week’s trading three rises for every two falls were recorded by New Zealand shares, notes and rights. The previous week’s ratio was 1.2 falls to each rise, and the Reserve Bank index of New Zealand shares showed a slight fall on the week.

Recorded turn-over in Christchurch was the highest weekly figure for two months, and the 33,000 New Zealand “miscellaneous” shares represented the highest turn-over in this category recorded since June. Australian shares, too, were more active, than for some time, but dealings have not recovered yet to last year’s levels.

Leading New Zealand issues were again very firm, recording nearly twice as many advances as declines. The previous week they moved against the general trend, with slightly more rises than falls.

Last week was an eventful week in stock markets in London. Prices see-sawed to the changing international situation, according to a Reuter commercial correspondent. After the previous week's good trend in prices there was a sharp reverse on Monday on the Sino-India war news.

Tuesday found prices easing back further to be followed by a rapid upturn on Wednesday following the ceasefire news. However, at the week’s end, local by-election results—showing Government losses—halted the advance. British funds on the week’s balance showed widespread improv°ments war loans were around one point better. With Wall Street pushing upwards—dollar counters also improved. Canadian counters particularly have moved well, influenced by the good Canadian economy news, and Canadian oil counters were particularly impressive. Tea Shares Recover On balance equities had a preponderance of gains, but dull spots were seen, especially for some steels. Tea shares staged a good recovery from earlier losses suffered on the China-Indian war news.

In oils, Burmah were a trifle lower, but British Petroleum held steady. Australian oils recorded little change over the week. News around mid-week of South African rioting brought gold shares back, but actual selling was light and prices subsequently made recoveries. Australian mining counters showed many improvements, but South American issues were mainly neglected. On the Melbourne Stock Exchange last week a feature was the heavy selling of Broken Hill Proprietary schares. Prices fell to 495, the lowest level for three years, but staged a good recovery to end the week at 51s 3d, the stock exchange reported, according to a cable from Melbourne. A brighter tone was evident when business dosed and industrial shares generally

were firmer. Rises and falls were in balance, but turnover for the week was down. An improved profit by the A.N.Z. Bank enabled the dividend to be maintained at 12 per cent Broken Hill Proprietary announced higher production for the month of October. The L. J. Hooker Investment Corporation reported a loss of £2.2m. The Sydney Stock Exchange finished the week with trading at steady levels and with some leaders, among them Broken Hill Proprietary and Australian Consolidated Industries. gaining ground lost earlier in the week. Industrials started the week quietly and with prices slightly lower, but a firmer trend developed in midweek trading. On Thursday leading stocks headed a general advance among industrials, while oil stocks were keenly sought. Hookers’ Loss The full accounts of L. J. Hooker Investment Corporation were released during the week, revealing a consolidated loss of £2,167,057. The result was evidently no worse than had been anticipated, for the 5s shares rose from 4s Id in Sydney on Wednesday to 4s 3d on Thursday. “It is perhaps worth repeating at a time when receiverships and special Government investigations are still in the air that the L. J. Hooker organisation is not in that class,” says the financial editor of the “Sydney Morning Herald,” commenting on the accounts. “It is solvent, the par asset backing of its shares remains intact, and it is the first of the big land development companies to clean out the stables. Since the market price of Hooker shares has already come down from the level of 27s ruling two years ago to about 4s, this is no occasion for panic on the stock exchange. Given a continuance of the firm financial control of Mr J. K. Campbell, the future recovery will be all the stronger for the drastic writing-down of the real estate sites in this year’s ac-

counts, says the "Morning Herald.”

“Hookers still has its excellent real estate agency business: the pared-down hotel chain is capable of earning satisfactory profits and the same applies to the pastoral interests, after appropriate adjustments. But with a share capital of £5.2m to be fed, there is simply no room, for any more extravagant mistakes.” Meats Firm The feature of the week’s trading in New Zealand shares was the strong demand for meat exporters’ shares. Canterbury Frozen Meat. Gear Meat. Meat Packers and New Zealand Refrigerating all rose under buying pressure. The following table shows how meat companies' shares have moved since the end of September:—

Since the end of September, opening schedules for the 1962-63 exporting season have been announced. Lamb prices have been unchanged—at 16Jd in the South Island—since the start of the season, although over the same period Smithfield prices have fallen from 25jd per lb to 21 id. None of the New Zealand lamb killed this season has yet been marketed; it can be expected to fetch a premium of about 2d per lb over the old season’s on arrival in the United Kingdom. The fall in Smithfield prices since the end of September is a normal seasonal movement The trend in the last two months is the same as in 1960, but prices are well above the abnormal levels of 1961. The low schedule prices paid by exporters last season must have enabled them to trade profitably all through 1962.

Government Stocks Yields

Average yields to maturity on Government Stock last week were again higher. Average short-term yield was £4 15s, average medium-term £5 2s lid, and average longterm £5 3s 7d. Yields to maturity on Government Stock traded in Christchurch last week were: 3 per cent., 15/7/1962-64, £4 12s Id per cent.; 4g per cent., 15/7/1963, £4 19s 3d per cent; 3 per cent., 15/7/1963-65, £4 12s 8d per cent.; 4% per cent., 15/10/1965, £4 14s 9d per cent, and £4 14s lOd per cent.; 4| per cent, 15/6'1966-67, £4 18s 9d per cent.; 4% per cent., 15/5/1967, £5 Os 3d per cent; 4% per cent., 15/7/1972. £5 2s 9d per cent, and £5 2s lOd per cent.; 4% per cent.. 15/11/1970-72, £5 3s 8d per cent and £5 3s lOd per cent. Details of transactions on the Christchurch Stock Exchange last week: Government stock, £25,015 (against £10,725 the week before); local body and company debentures, £3970 (£3000): preference, 1922 (nil); banks. 2286 (2067); breweries, 3200 (4750); frozen meat, 1050 (1020); gas, 636 (nil); insurance, 1000 (700); loan and agency, 3650 (1300); shipping, nil (900); woollens and textiles, 3750 (7450): miscellaneous (Australian), 15,352 (14,965); miscellaneous (New Zealand), 32.799 (16.029); mining, nil (500); unlisted, 150 (100); total, 64,795 (49,781).

Price s d Rise s d C.F.M. .. 36 3 2 3 Gear Meat .. 16 0 0 6 Meat P. .. 10 6 0 6 N.Z. Refr. .. 36 3 1 9 Sid. Meat .. 17 0 0 9 Waitaki Fr. .. 15 0 1 3 Hellaby .. 51 6 1 0