Review Of Week’s Stock Exchange Transactions

Press, Volume CII, Issue 30201, 5 August 1963, Page 16

Review Of Week’s Stock Exchange Transactions

[By Our Commercial Editor) The tone of the market for New Zealand shares was hesitant last week. For the first time in months, leading issues showed (slightly) more losses than gains. Second-rank issues continued to forge ahead, making three gains for every loss. Many of these gains, however, were made by shares traded for the first time in many weeks, and do not necessarily reflect an improvement over the last week.

Over the whole range of New Zealand shares, rises outnumbered falls by a small margin. As most of the rises were made by second-rank issues, while leaders accounted for nearly half the falls, the over-all trend might best be described as barely steady. Overseas shares were very firm. Of 50 issues traded, half were sold at higher prices than in previous New Zealand business, the remainder being evenly divided between falls and “unchanged.”

The week's best gains by New Zealand shares were those of Dominion Investment and Banking (Is 3d), Felt and Textiles (ls>. Alex Harvey (Is 6d>. Andrews and Bea ven (Is). Beath’s <3s 6d). Cable Price Downer (Is 7d). Charles Begg <2s). McKenzie notes (Is 4d). Magnus Motors (Is Od). Reid Rubber (2s 6d). Tappenden Motors (Is 3d), Wormaid (2s), and Beechey and Underwood (2d). Falls of comparable size were recorded by Manufacturers’ and Retailers’ Acceptance (Is). Crystal Ice (Is 6d) Ivon Watkins new (Is 6d). John Burns (3s), Skellerup Industries (3s), and Winstone (Is 6d).

Peak Prices

Peak prices for 1963 were reached last week by Tui Breweries, N.Z. Refrigerating. Christchurch Gas. Feltex Alex Harvey. Andrews and Beaven, C.P D . Charles Begg Dunlop, Farrier-Waimak, L D Nathan, Magnus Motors. Reid Rubber, Tappenden. Whitcombes. and Wilson and Horton in the New Zealand section.

Bank NSW, CB A_, EZ and Mount Isa were among overseas issues to touch peak levels for the year

South British insurance lost ground for the fifth week in succession, while W. R. Carpenter made its fifth consecutive weekly gain. C.B.A. has gained each week for the last four weeks, while Feltex Australia has slipped back at the end of each of those weeks.

Tui Breweries. N Z. Refrigerating. Reid Rubber. Ross and Glendining, Tasman. Whitcombes, Wilson and Horton have made gains over the last three weeks.

Issues Rushed

Two new share issues came on the New Zealand market last week. They were the £450.000 offer of 5s shares at par in the Von Kohorn nylon spinning venture, and the Jaimes Smith offer of 5s ■hares at 50 per cent premium.

Advance subscriptions to each issue exceeded the num-

ber to be allotted, and each issue closed immediately, heavily over-subscribed

The James Smith directors announced that their issue was five tames over-sub-scribed. From the forecast 9 per cent, dividend, the successful applicants for these shares will get a 6.7 per cent yield on their outlay; the steep premium on this issue is justified by the comparative security of a stake in a well-established business. Applicants for the Von Kohorn issue seemed in no way deterred by the ignominious fate of the Whangarei glassworks venture. Although nylon spinning, like the manufacture of sheet glass, will be an entirely new industry to this country, this is where the similarity between the two ends. Me Kendricks Glass failed, primarily .through the lack of overseas “know’-how”; Von Kohorn is backed by one of the leading overseas nylon spinners and local investors have no worry on that score As with the oil refinery shares, it would not be surprising to see Von Kohorn shares open at a modest premium, and improve steadily as the production date approaches.

London Slocks

A steady contraction of business on London stock markets has been blamed on the holiday season, but there have been quite a lot of favourable factors, according to Reuters financial editor. There have been various encouraging statements from both the Treasury and the Chancellor of the Exchequer on the improving economic situation and good statistics from various sections of industry including the latest hire purchase sales of cars. Given a continuation of these favourable trends markets could well move sharply ahead after the holiday season.

Gilt-edged were quiet last week and narrow movements left prices little changed on balance. There was selective buying of equities, but the general trend of prices was indefinite.

Australian stocks were generally firms and golds trended higher on small buying. Banks generally hardened, but National of Australasia lost some of last week's gain.

Government stocks held steady. Oils were dull but several gains w’ere scored elsewhere. B.H.P. were a good feature.

Premium Falls

The premium on Australian shares continues to fall On Wednesday last week 15 of the popular Australian stocks were traded in New Zealand at prices averaging (before allowing for the exchange rate) 82.4 per cent, of the previous days’ Australian prices for the same stocks. This is a premium of 3 per cent., compared w’ith the previous Wednesday’s 4.4 per cent., and with 6.8 per cent, ath the end of June. Average yields to maturity on Government stock w’ere lower last week. Short term dropped Id to £4 10s lid, medium term Is 2d to £5 IslOd and long term 3d to £5 2s 6d.

Stock Yields

Only tw-o parcels of Government stocks w’ere" traded in Christchurch last week. Yields to maturity were: 4J per cent. 15/6/1965, £4 8s per cent., and 3 per cent. 15/5/1964-66, £4 6s 7d per cent.

Details of transactions on the Christchurch stock exchange last week: Government stock, £7500 (against £6250 the week before); local body and company debentures, £l9OO (£400); preference, 1650 (362); banks, 1856 (1906); breweries, 8300 (4900); frozen meat, 2120 (1050); gas, 685 (nil); insurance, 2262 (1350); loan and agency, 7046 (2177); W’oollens and textiles, 3133 (1900); Australian, 16,653 (16,318); New Zealand, 27.349 (20.799); mining, 650 ( 400); unlisted. 1100 (nil); total, 72,804 (51,162).