Review Of Week’s Stock Exchange Transactions

Press, Volume CII, Issue 30279, 4 November 1963, Page 18

Review Of Week’s Stock Exchange Transactions

(By Our Commercial Editor] There were twice as many rises as falls last week among New Zealand shares, and nearly as many shares were firmer as were steady. Trading issues made three gains for every loss, other issues slightly more than three gains for every two losses. Most leaders were unchanged, and most of the variations by leaders were slight.

Many of the gains by second-rank issues were made by shares which had not been traded for some weeks or months. These gains reflected the firmer tone of the market in previous weeks, rather than last week.

Overseas issues also improved during the week, in the ratio of four gains to even- three losses. Several of the rises were substantial.

The largest gains by New Zealand issues were made by National Timber. British Office Supplies. Hamilton Hardware, L D. Nsstian, McKenzies notes, Magnus Motors. Milbum Cement. New Zealand Newspapers. Otago Daily Times, Reid Rubber. Rex Consolidated. Rothmans <N.Z.), and Wormaid Brothers. Fek and Textiles of N.Z., Carter Consolidated. Claude Neon. Farrier-Waiimak. John Duihie. Wilkins and Davies, end Wisemans Holdings •bowed rhe sharpest losses. Of the overseas issues traded. Commercial Bank, E.S. and A. Bank. Swan Brewery, Dalgety and W R. Carpenter all made big gains. Bitumen and Oil made the only appreciable loss. Bull Factor Better immediate prospects for New Zealand's main exports have been a bull factor in the market in recent weeks Wool prices have exceeded all expectations, and are currently running more than Is per lb above last year’s. Prices at the Auckland sale today are expected to average about 57d per lb. So far the market has shown no symptoms of preelection nervousness. Both parties will open their election campaigns in Christchurch this week, and investors will then be able to study the policies of each party to assess their implications for the sharemarket. National Party policymakers have held their cards c’.ise to their chests, but Mr Nondmeyer has given voters a glimpse at the Labour Party policy. Promising closer attention to production incentives and export promotion. Mr Nordmeyer may envisage measures of benefit to farmers and meat companies Such measures could be of some interest to investors, as was the tax concession on fertiliser expediture in the 1963 budget. The investor may have less to fear from the return of a Labour Government this election than In previous elections. Company Results In the short run. it should be remembered that November 30 is more than halfway through the year ending March 31. when many companies balance their books. The promptest action by a Government determined to undermine business confidence (taking the gloomtest view) could have little effect on most companies' accounts

for the current financial year. Business has been good for most firms since April 1. and there should be some excellent results for the year ending March 31. The election is unlikely to affect the higher profits and dividends in prospect for many companies.

Melbourne Active Increasing activity was displayed by investors on the Melbourne Stock Exchange last week, according to a Melbourne cable. Prices drifted, however, and turn-over increased with sellers predominating. Trading in base-metal shares was one of the week's high-lights. Mount Isa’s news of an extensive deep-level copper lode, a £22m expansion programme, and a cash offer for Mount Lyell from overseas, brought heavy trading in this group of shares.

Ampol reported a slight profit increase and Peters sales for export moved up strongly in the first quarter. Henry Jones shares fluctuated sharply, gaining strongly with rising sugar prices, then dropping on the announcement of a steady dividend. Clyde Industries reported a profit gain of 30 per cent for the year. Movements in leading stocks was not great, most remaining steady for the week. Mt. Lyell Bid The offer received by Mount Lyell, Tasmanian copper and tin mining company, amounted to £2.563,312 for a 60 per cent shareholding in the company. It was made by a Canadian and British consortium of companies in which the Bolvian tin millionaire, Mr Antenor Patino, has a big shareholding.

The offer was 5s 3d a share, compared with 3s 3d in Sydney on the eve of the offer. On Friday night the Mount Lyell directors announced they would not recommend the offer. Commenting on the offer, the financial editor of the “Sydney Morning Herald” said he thought it probable that Patino’s object in bidding for I the famous old Tasmanian I copper company “is at least as much to acquire its halfinterest in the nearby tinmining company, Renison, Ltd., as it is to get the copper mine. “Tin has always been Patino's forte, though the group now also has important copper mining interests in Canada, and the Canadian subsidiary is one of three Patino companies which have formally made the takeover offer. . . . “Patino, with its vast experience of tin mining in Latin America, Malaya and elsewhere, can size up values better than Australian investors who are particularly untutored in tin matters,” he said. London Gains It was another week of very active trading in the London Stock Exchange, according to Reuter’s financial editor. Al-

though buying was almost evenly matched by selling in the latter half, many stocks ended showing good gains. A further cautious note struck by the Chancellor of the Exchequer in his statement last week-end. followed by comment from one paper that a rise in bank rate in the not far distant future would cause no surprise, had a slightly unsettling effect. This view upset the giltedged market, but the fall in prices was reversed at midweek and some of the lost ground w as regained. A feature on Friday was the sharp rise in international stocks and other issues usually favoured by American investors. This followed a rumour that the United States was to modify the recently introduced securities tax. As a result stocks like Unilever, Philips Lamps, Rank Organisation, 1.C.1. and Courtaulds all went ahead.

Shipbuilding shares were in demand following the steady flow of new building orders, but shipping shares met profit taking and lost ground. Stock Yields Average short-term yields to maturity on Government stock eased 3d to £4 6s Ud last week. Average mediumterm firmed 2d to £4 19s sd, and average long-term yields 4d to £5 2s 4d. Yields to maturity on Government stock traded in Christchurch last week: 4J per cent 15/6/66-67, £4 15s 4d per cent; and 5 per cent 15/5/75-77, £5 3s 2d per cent.

Details of transactions on the Christchurch Stock Exchange last week: Government stock, £l4OO (against £ll7O the week before): local body and company debentures, £l7OO (£7400); preference. 1525 (2760); banks, 1076 14096); breweries, 2400 (4050); frozen meat, 2800 (3315); gas, nil (200); insurance. 450 (850); loan and agency. 7931 (20,125); shipping. 800 ( 600); timber, 1000 (nil); woollens and textiles, 2160 (5254); miscellaneous Australian, 13.063 (13.365); miscellaneous New Zealand, 22,717 (25,903); mining, 1425 (1000); unlisted. 1408 (200); total, 58,754 (81,723).