Review Of Week’s Stock Exchange Transactions

Press, Volume CII, Issue 30041, 28 January 1963, Page 14

Review Of Week’s Stock Exchange Transactions

(By Ota Commucuu Editor)

The firm trend of the New Zealand sharemarket in the opening week’s trading was maintained last week, when trading expanded to very respectable levels. New Zealand industrials were particularly active and keenly sought. New Zealand shares made nearly two gains for every loss and some of the leading issues recorded substantial rises. Leaders made 27 gains and only 16 losses.

Up till Thursday overseas issues continued to firm but there was a sharp down-turn on Friday and over the week’s trading falls exceeded rises by nearly three to two. Several shares reacted sharply to recent developments affecting particular companies. Wellington Woollen ordinary, in first business since the announcement of the merger proposals with Kaiapoi Woollens, were 9s 6d up at 37s 6d; Ultimate-Ekco rose 6s 6d on the news of the Pye Electronics bid; and McKendrick Glass tumbled to 3s after the report that the concern is to be offered for sale.

Pye Electronic rose Is to 81s after the Ultimate-Ekco

announcement The Pye offer is 35s cash for each Ultimate-Ekco share, or seven Pye shares for every six Ulti-mate-Ekco shares. At 30s for each Pye share, the share exchange offer was worth 35s an Ultimate-Ekco share at 31s for a Pye share it rises to 36s 2d.

Until the Ultimate Ekco shareholders have been able to study the accounts of the unlisted Pye Electronics, however, they may be reluctant to exchange scrip. South British Insurance rose Is 6d to 60s on Monday, but lost Is of this gain on Friday. Wright Stephenson rose Is 4d more than the dividend. Colonial Motors, J. Yock, N.Z. Farmers’ Fertiliser, and Reid Rubber and WHistone also made large gains. Wool Prices The continued rise in wool prices at New Zealand and Australian auctions last week was a “bull point” in the sharemarket. A Melbourne report says that crossbred prices are now 12j per cent, to 15 per cent, higher than they were two months ago. Such increases—the sharpest in recent years—add millions of pounds to woolgrowers’ incomes, to export income and to the national product. Prices for most grades are about 9d per lb higher than they were 12 months ago. On this reckoning, the cheque from the third main sale of the Christchurch season, to be held in two weeks’ time, would rise from £3.om tn £3.6m. This is without allowing anything for increased production; and wool output is expected to show a 3 per cent, increase this season.

About half the country’s wool clip had been sold by Christmas, so that the sharp rise in prices since then wiH apply to the balance of the clto- The national wool cheque might well run out «t £losm to £llom this season, compared with last season’s £96m.

The five-months’ trading in Woolworths’ rights ended last week, with a few sales at 7s 3d and 7s Id. Since trading In the rights to a one-for-five issue at par opened in August last year the price showed remarkably little variataion. Thousands of rights changed hands in New Zealand at prices withai 3d of 7s. Ex ngbte. but cum dividend of 3d, the shares were selling at Us 8d in August last year, compared with test week’s

ex dividend price of Us 9d.

Australian shares have been traded at reduced premiums since the Christmas break. The premium on 11 Australian shares sold in New Zealand last Thursday was only 4.2 per cent, compared with 7 per cent, to 8 per cent, most weeks last year. Prices for shares hardened on the Melbourne Stock Exchange last week when rises easily outnumbered falls. Although trading was quiet, turnover increased, according to a Melbourne cable. Front-ranked stocks displayed a variable trend and investors appeared to follow company announcements in their bids and offers. Australian Paper Manufacturers has maintained last year’s higher interim dividend on bonus-increased capital; Bradford Cotton reports a substantial improvement in the half-year's profit; Permewan Wright have forecast higher earnings for the year; Associated Pulp has resumed interim dividends; and Amalgamated Chemicals will make a one-for-four issue. Australian Consolidated Industries, Colonial Sugar and Herald all finned, while 8.H.P., Myer Emporium, and Rothmans lost a little ground. London Markets The Common Market cloud continued to cast its shadow over London stock markets last week, according to a London cable. Buyers displayed a general reluctance to open commitments with the outlook so obscure and have preferred to await this week’s resumption of the Brussels talks, between the French and German leaders. In the main, prices have drifted lower, but this has been due more to neglect rather than to selling pressure. The brightest spot has been gold shares where a fairly persistent demand (some on. the United States account) on several days pushed prices higher. The Free Staters have shown the biggest gains, with F. S. GedUzl and President Brand outstanding. Loraine moved up in response to the good borehole news. Coppers have been buoyant on the better Katanga position and went ahead under the lead of Nchanga. De Beers were strong in diamonds.

Equities show a lona ’lst of falls, ranging from a few pence to 3s or more, but Wool-

worths held steady after the gold results.

Gilts Hold Up*

Gilt-edged, however, have held up well Foreign bonds have shown little movement Dollar stocks have mostly reflected Wall Street trends, but were looking rather mixed towards the week-end. Continental stocks were firm. Rising tanker freight rates due to Europe’s big fuel demand has attracted buyers to oil shares and B.P. finished the week nearly 3s higher. Shell have been wanted following the excellent earnings by the US. Shell Company. The pairent company's final quarter results are due next monith. Rubbers have been a dull market, but teas have been supported ait times. Australians were quiet with prices generally little changed. Government stocks held up well but the discount on the new 5i per cent, stock widened. Banks and industrials aittraeted little attention. Lake View were a good feature in golds but elsewhere Mount Isa fell back. Australian oil lost ground but Interstate were firm. Stock Yields Yields in maturity on Government stock traded in Christchurch last week: 3 per cent 1961-63, £4 Us 9d per cent.,; 3 per cent 1962-64, £4 14s 5d per cent, £4 12s 3d per cent., £4 12s 4d per cent, and £4 14s 3d per cent; 3 per cent 1963-65, £4 Us fid per cent; 4J per cent 15/6/1965, £4 12s 5d per cent.; 3j per cent. 15/9/1969, £5 4s 6d. Details of transactions on the Christchurch Stock Exchange last week —Government stock, £5655 (against £1400); local body and company debentures, £7OOO (nil); preference 729 (1850); banks, 1242 (483); breweries, 4900 (7850); frozen meat, 1135 (800); gas, 100 (nil); insurance, 574 (2000); loan and agency, 7400 (2250); shipping, 600 (500); timber, nil (468); woollens and textiles, 6450 (3937); Australian miscellaneous, 21,142 (12,602); N.Z. Miscellaneous, 27,043 (14,919); mining, nil (500); unlisted 425 (nil); total, 71,740 (48J59).