COMMERCIAL Review Of Week’s Stock Exchange Transactions

Press, Volume CII, Issue 30153, 10 June 1963, Page 16

COMMERCIAL Review Of Week’s Stock Exchange Transactions

IBs/ Our Commercial Editor]

. Leading New Zealand shares had one of their best weeks this year when they made nine gains for every loss reported last week. Overseas issues showed no definite trends As in the previous week, second-rank issues among New Zealand shares made two gains for every loss and the undertone was definitely firm. The leaders, however, bounded ahead, suggesting that the buoyant demand for these shares in recent weeks has been by no means satisfied.

Some 170 issues, local and overseas, were traded during the week, compared with more than 200 in several recent weeks. In the short week, however, Christchurch turn-over of 63,000 shares, notes and rights, and more than £19,000 of stock represented a higher than average daily turn-over.

A feature of the week’s trading was the increased activity in overseas—particularly Australian —issues. The Christchurch turn-over of Australian industrials and retailers, for the first time since April, nearly matched that of New Zealand shares in the same categories. The increased turn-over of Australian shares suggests that New Zealand investors' confidence in the Australian market is at last returning. Milling Rise

Prominent among the higher prices paid for New Zealand shares last week was

the 8s rise to 47s in the price of Northern Roller Milling shares. This com■pany, convicted a few weeks previously Tor income tax offences, had for a little time lost the confidence of investors.

The price of the £1 shares fell from 38s on April 4 to 37s by the end of April, has recovered sharply to close at 47s last week after the surprise announcement of increased dividend and a onebonus share issue. Other issues which rose sharply last week included Andrews and Beaven notes, Donaghy’s Rope, Farmers Trading. L. D. Nathan, Norvic Shoes, New Zealand Newspapers, Wilson and Horton, and Winstones.

The only sharp falls among New Zealand issues were recorded by Westland Breweries and Mason Brothers. Variable Tone Prices were variable on the Melbourne Stock Exchange last week, the number of rises being approximately equal to falls. Turn-over was at normal levels, according to a Melbourne cablegram.

Two new semi-Government loans were announced at the lower rate of 41 per cent, for seven years, by the Melbourne and Metropolitan Board of Works and the Sydney Water Board. As yet there has been no noticeable firming of the equity market following the lower trend in interest rates. I.C.LA.N.Z. announced a profit for the half-year 25 per cent, higher at £l.9m. Closing price for the week was steady at 47s 9d. The market appeared slightly easier on the Sydney Stock Exchange last week, according to the exchange mid-week report. Trading activity improved partly resulting from the opening of trading in Ampol and Waltons rights. The ordinary share price index eased a little less than a point to 315.16 on Tuesday. Ampol rights were first traded on Friday, with more than 160,000 changing hands at prices from 6d to HJdMore than 100,000 were exchanged on Monday with the price settling around 91d. The annual report of Tooth and Company disclosed a very high tax provision and

confirmed the company’s strong asset position. An encouraging interim report from 1.C.1. resulted in a small rise in the share price. The mining market was generally quiet again. Hopes Dispelled Any hopes of an early issue of new share capital from the recently - listed Dominion Caterers were dispelled by the chairman (Mr W. H. Nicholls) in his annual address, to be presented to shareholders at the annual meeting. “It may be thought that our liquid position is not good, with our current liabilities at £68,307 so much in excess of current assets of £36,142,” he says. “The date of our annual accounts shows the position in its least advantageous light, with taxes just paid and the busiest time of the year occurring some months earlier.

“When I tell you, however, that for 10 months of the year our banking account shows an overall credit balance, I think shareholders will appreciate that no further capital in the business is necessary, at the present moment, at any rate. “I mention this because it has been suggested that your directors may find it necessary to raise further capital due to the position shown by the accounts. The directors have nothing in mind, and as I have said, the March adverse position is always, and only a temporary one,” Mr Nicholls says. Stock Yields

Average yields on Government stock were again variable last week. Average short term yield rose 2d to £4 13s, average medium term fell 2d to £5 2s 4d, and average long term was unchanged at £5 3s sd.

Yields to maturity on Government stock traded in Christchurch last week: 4% per cent, 15/6/1965, £4 8s 5d per cent.; 3 per cent, 15/7/1963-65, £4 7s Id per cent, and 4% per cent, 15/10/1965, £4 7s 6d per cent.

Details of turn-over on the Christchurch Stock Exchange last week are as follows’ — Government stock, £ 19,540 (compared with £B9OO the previous week); local body and company debentures and stock, nil (£2000); preference. 600 (2750); banks, 1807 (1247); breweries. 4400 < 3680); frozen meat, 1300 (4038); insurance, 900 (6712); loan and agency, 2973 (4190); shipping, nil (936); timber, 900 (nil); woollens and textiles, 7614 (9622); miscellaneous (Australian), 20,229 (16,492); miscellaneous (N.Z.), 21,763 (23,660); mining, 300 (600); unlisted, nil (675); total, 62,786 (74,602).

Baillie Motors Lifts Profit

(ti.Z. Press Association) WELLINGTON, June 9. The directors of Baillie Motors, Ltd., advise improved sales and net profits for the half year ended April 30. Sales are higher than the corresponding period in 1962 and net profit, after provision for taxation, exceed £13,000 for the half-year period compared with £26,571 for the full year ended October 31. 1962.