COMMERCIAL Review Of Week’s Stock Exchange Transactions

Press, Volume CIII, Issue 30391, 16 March 1964, Page 14

COMMERCIAL Review Of Week’s Stock Exchange Transactions

Over-all the market was steady on last week’s trading, rises and falls being exactly in balance, but the overseas section declined sharply and any strength came from New Zealand issues.

New Zealand shares showed rises ahead of falls, but among the overseas issues falls outnumbered rises by three to one. Australian shares reflected weakness on their home market.

Banking shares suffered the sharpest reverses, with falls by A.N.Z., down 3s 9d, Bank of New South Wales, down Is 9d, National Bank of Australia contributing, down 2s 9d, and National Bank of New Zealand, down Is.

Newspapers, reacting to the latest development on the bids for Wellington Publishing, suffered some setbacks on the week. Early in the week News, Ltd., announced that it had bought more than 25 per cent of the shares in Wellington Publishing, and the company’s directors reiterated their “don’t sell” advice. New Zealand Newspapers lost most ground on the week with falls of 3s 3d by both the old and B shares. Wilson and Horton lost 6d to 295. Breweries Brewery shares followed an uncertain trend. Taranaki and Tui closed the week ahead of the week before, Dominion were steady and New Zealand easier. Frozen meat was firm with rises by Canterbury Frozen Meat, Gear and South Otago. There were no falls in this section. Among insurances South British recovered losses of the last few weeks, but National slipped back. Loan and agency had a firm undertone, but movements were mainly narrow. Credit Services Investments rose 6d to 6s. Woollens In the woollens and textile section Lane’s and Lane Walker advanced, but Mosgiel and K.P.G. eased, although K.P.G. notes were firmer. Industrials were roughly in balance, but there were some good gains in this section. Andrews and Beaven rose Is 6d to 47s 6d, Dunlop 2s 3d to 68s 3d, Norvic 2s to 345, and Reid Rubber Is 6d to 57s 6d. Other worth-while rises were made by Armstrong and Springhall, C.P.D., John Duthie, Wilson Cement and Hellaby 1959 issue. There was little interest in retailers and the market was steady. Price changes were narrow. Fibremakers Investors interested in Fibremakers (New Zealand), Ltd., now know the proposed details of its share capital and when to expect the issue. Details were announced last Thursday by the chairman of directors (Mr K. B. Myers). The public issue will be made towards the end of the year. Terms of the issue will be set out in a prospectus made available then.

Ordinary share capital will be £1,250,000 in 5s shares. One million shares will be made available for public subscription. The parent company, Fibremakers, Ltd., Australia, will underwrite the issue and subscribe £lm. Construction of the £2.5m nylon spinning mill at Wiri, near Manurewa, is up to schedule. The warping mill will be in operation in May and the production of nylon filament yarn is expected to start in December. Guinness And Tui The visiting vice-chairman of Arthur Guinness, Son and Company, Ltd. (Lord Moyne) got in ahead of any criticism that his company might have any control of Tui Brewery, which is to brew Guinness stout in July. He told reporters in Wellington last week that his company had only a very small number of shares—“a token amount”—in Tui. However, the Guinness organisation, one of the biggest advertisers in Britain, will finance promotion of the stout in New Zealand. Tui will start producing Guinness in July and it should be on the market early in August. The price of the 12oz bottle of stout has not yet been determined. Listless Start New Zealand shares showed a firm undertone on Monday, but the market was listless and the overseas section was very quiet and featureless. New Zealand Refrigerating 10s stock units sold for the first time at 19s, ex bonus issue. Rubber Distributors gained 2s 6d, while South British old and B shares continued to improve. New Zealand Newspapers and Wilson and Horton lost ground on Tuesday’s market. Trading covered a wider range of shares with rises ahead of falls, but key stocks were steady and overseas issues quiet. The steady tone continued on Wednesday, but the market was again dull and without feature. New Zealand leaders were firmer, but overseas leading issues were easier. Bright Spot A bright spot was the continued improvement by South British, but it was mainly recovery of ground lost in the last few weeks. Lane Walker advanced to 18s 9d.

An easing market on Australian exchanges earlier in the week had its effect on New Zealand trading on Thursday. The sharpest shock was to the bank group which recorded falls by A.N.Z. Bank, Bank of New South Wales and National Bank of New Zealand. Eight other key Australian stocks eased. Trading suffered its sharpest reverse of the year on Friday with New Zealand issues showing nearly twice as many falls as rises. Overseas shares were quiet and uncertain. A feature of the day was the sharp fall by New Zealand Newspapers. Depressed Depressed levels again ruled for shares on the Melbourne Stock Exchange last week when the market suffered its sharpest reverse this year, according to a Melbourne cable. Falls outnumbered rises by nearly two-to-one and turnover declined. The index for all-ordinary shares fell from 119.20 to 117.37 for the week. Banking shares suffered some heavy declines. The index for this group lost 3.04 points. However, towards the close of trading the decline in the market showed signs of levelling off and there was a hardening of values in some sections. Several unfavourable company reports set the pattern for the weaker trend, but an equal number of good reports came to hand. Profits Narrow It is evident that some companies experienced higher costs and narrow profit margins in the first six months’ trading of the current financial year. H. C. Sleigh reported a sharp fall in earnings, but normal dividends are expected when the year ends. Amalgamated Chemicals announced a 10 per cent drop in profits, but lifted dividend from a 12} per cent rate to 13} per cent. The Myer Emporium lifted sales and profits for the halfyear, while Mayne Niekless, Victorian shipping agents, carriers, Custom agents and cash delivery service, announced that P and O had bought a 20 per cent share interest.

In its monthly report the National Bank says that Australia is experiencing one of the most soundly-based periods of prosperity since the war.