Review Of Week’s Stock Exchange Transactions

Press, Volume CII, Issue 30171, 1 July 1963, Page 16

Review Of Week’s Stock Exchange Transactions

[By Out Commercial Editor]

The pace of the sharemarket’s advance was checked last week. New Zealand issues made scarcely two rises for every fall, compared with the three-to-one ratio of the previous week.

Trading was confined to a modest 184 issues, but turn-overs were heavy. Business recorded on the Christchurch Stock Exchange exceeded 96,000 shares, notes and rights—a figure surpassed in recent years only by the 113,000 of the previous week.

Leading issues again were in (Fernand, finishing the week with a higher ratio of rises to falls than second-rank shares. The most notable movements were those of South British Insurance (which finished Is up), Dunlop N.Z. (4s 9d), Forest Products (Is 3d), and Wilsons Cement (Is).

Other good gains were made by Tekau Knitwear Its), CotilJs. Somerville, Wilkie (Is). Devenport Ferry (Is 6d), Farrier-Waiimak (3s 3d), Henry Berry (Is 6d), Northern Roller Milling (Is), New Zealand Refining (Is 8d), Skellerup (Is), and Vibmpec Wellington (2s 3d). Devonport Ferry (fully paid) closed at 28s and the oqnrtriburting shares ait Ils 6d. At the last meeting of the company’s shareholders last week the secretary, who has been appointed liquidator,, said the company’s assets should realise enough to pay 31s 6d on the fully paid shares and 14s on the contributing shares.

New Zealand Refining shares touched 28s Ad last week before profit-taking clipped 6d off the market value. Demand for this scrip appears to have been augmented by the 10s call two months ago, and by subsequent reports of the progress of the construction work on the refinery. This share may yet equal the investment performance of Tasman Pulp and Paper shares, which have fetched as much as 38s 6d before paying their first dividend. First Decade

Vibrapac Blocks produced another impressive set of accounts at the end of last week to mark the company’s tenth year in business. Net profit has risen from £3497 to £27.470 over the decade, more than matching the rise in paid capital from £50,900 to £158,492. The dividend rate has gone up from 4 per cent to 10 5-6 per cent., while the earning rate on shareholders’ funds has risen from 5.8 per cent, to 10.5 per cent. The market has been inclined to value this stock conservatively in the last year or so. because of the decline in building activity in Canterbury, the company’s main market. As the chainman points out in his annual review, the decline in the number of permits issued for house-building in Canterbury has been of the order of 15 per cent, in the last year.

The turn-over of the parent company, however, fell only 7 per cent., and this decline was more than made up by sales of the new subsidiary, Vibrapac (Otago). Last recorded business in the 10s shares was done at 225, on June 10. At this price the dividend yield is 5 per cent, (compared with 4.8 per cent. 12 months earlier), and the price-earnings ratio is still a modest 13. Beer And TV

Brewery and television company shares held the limelight on the Australian stock exchanges last week, according to a Melbourne cablegram. “Both groups responded to encouraging company reports and higher profits.”

Other market leaders in the news included 1.C.1.A.N.Z.. which rose to its highest price for the year (49s 3d), and Broken Hill Proprietary, with a turnover approaching 100.000 for the week. Record trading in Ampol rights was also reported, at prices rising from Is to Is 3d during the week. Interest in mining shares centred on Western Mining , which reported a proposed £29 million iron ore contract with Japan; the shares rose Is in two days. Mt. Isa reported record production for the year, while General, Credits and Auto and General Industries announced profit increases. Carlton Brewery scrip finished the week Is 6d higher at 41s. Melbourne Co-opera-tive Brewery added Is 3d at 32s 9d. Rothmans finished Is 6d higher. Gippsland TV added lOd for the week, Ballarat TV gained a similar amount and Bendigo TV were 2d dearer. London Unsteady

Political uncertainties and encouraging economic news are still fairly evenly balanced on London stock markets, with the prospect of an early election and a possible change of Government undoubtedly the biggest influencing factor, according to aLondon cablegram. “Brokers consider that this

situation is likely to persist until the position is resolved one way or the other. Company news, however good, has therefore had only a limited effect on share prices. "In general, the market has been quiet over the last week. The tone has been firm enough, but the volume of business has been too small to influence the general level of prices.” the message says. “There has been nd real increase in turnover, and many buyers are obviously still holding off.” A.N.Z. Rights Rights to the A-N.Z. Bank’s new issue were very active on the New Zealand market. Recorded turnover in Christchurch exceeded 11,000, at prices ranging from the previous week's 6s down to 5s 6d. Details of turnover on the Christchurch Stock Exchange last week, are as follows: Government stock £ 1475 (compared with £2150 the previous week); local body and company debentures nil (£2300); preference 800 (5946); banks 12,407 (7738); breweries 4690 (8050); building societies nil (300); frozen meat 3032 (3400); gas nil (1000); insurance 600 (1899); loan and agency 1000 ( 6223 >; woollens and textiles 6372 (9151); timber 100 (nil); miscellaneous (Aust.) 34,187 (39,994); miscellaneous (N.Z.) 26.928 ( 25,609); mining 5700 (4130); unlisted 100 (212); total 96,116 (113,752).