COMMERCIAL Review Of Week’s Stock Exchange Transactions

Press, Volume CIII, Issue 30533, 31 August 1964, Page 15

COMMERCIAL Review Of Week’s Stock Exchange Transactions

Strengthening by New Zealand stocks, taking on some good gains by second-rank issues, was a feature of trading on New Zealand stock exchanges last week, but the overseas section was easier.

r ? af l in F ran £ e( l widely through both the New Zealand and overseas lists, but turn-over on the Christchurch Stock Exchange dropped to its second lowest level this year.

Frozen meats were a strong section of the market, with Southland Frozen Meat, 29s 3d. and South Otago Freezing, 41s, at new peaks for the year, while Waitaki old and B shares both gained 9d to 18s 9d ex dividend

Insurances were irregular. S uth British B. up 3d to 52s 9d, was the only advance in

this section. New Zealand Insurance B and C, both at 265, and South British, at 52s 6d, each lost 6d on the week. Loan and agency issues held a firm tone, with gains by F A C., Newton King old and B shares and notes, Wright Stephenson and National Mortgage A. Alliance Peak Woollens and textiles were irregular. Alliance equalled its peak price for the year of 15s 6d, Feltex N.Z. reached a new peak of 85s 6d, while Tekau, although easing at the close, finished the week 6d ahead at 19s. Some good gains were made by New Zealand industrials and retailers and new peaks were reached by both key stocks and second-line issues. Shares that rose to new peaks during the week included: Floor Tiles, up 5s to 38s; Harnish and Jordan, 3s to 275; Innes, 3s 6d to 435; Mannings. 3s to 29s 6d; and Rubber Distributors, 7s 6d to 355. Claude Neon N.Z. rose 2s to 78s od. Watkins-Dow old 6d to 16s 6d and new 3d to 16s, Rheem at 19s was at its highest point since the bonus issue on June 30, while the unlisted Hellaby gained 2s to 755, although it was slipping back at the close. Among the falls Clyde Engineering and Dominion Farmers’ Institute both lost Is. Fertilisers are losing popularity: K.P. Drug fell a further 2s to 58s and N.Z. Farmers Fertiliser slipped 3d to 52s 6d. Sharpest fluctuations by overseas issues were downward. C.S.R., reacting to world sugar price changes, lost Is 6d to 66s 6d—7s 3d below its peak for the year. E.Z. In-

dustries fell Is to 20s and Mount Isa 2s to 38s. Bid For Yock Consolidated Plastics announced last week that acceptances from holders of 98.5 per cent of the share capital of J. Yock, Auckland merchants, had been received. The offer, three Consolidated Plastics 10s ordinary shares for every J. Yock 20s share, put a value of £1,530,000 on Yocks. Capital Moves Capital moves were also announced last week by Henry Berry and Floor Tiles and Parquet (N.Z.). Henry Berry propose a cash issue at a premium and a one-for-five bonus issue. Premium for the cash issue of 60,236 10s ordinary shares will be 10s a share and the basis will be about one-for-six. The bonus issue will involve 82,000 10s ordinary shares. Capital will be lifted to £246,000 after both issues. Floor Tiles proposes increasing nominal capital to £150,000 and splitting its 20s shares into 10s units. Directors also propose issuing 50,000 6j per cent unsecured notes of 10s. These will be convertible to ordinary shares at par within five years. Shareholders of Fea Concrete Industries, Gore, last week approved lifting nominal capital and the issue of 48,750 convertible 10s notes at par in the ratio of one for each two ordinary shares held. Maturing on April 1, 1968, on the basis of one share for each note, the 6i per cent registered unsecured notes will raise £24,375. Star Profit The unlisted Evening Star announced latest profit 24 per cent up at 562,306 after higher depreciation and tax. This result continues the upward trend currently being shown by daily newspaper organisations. Although removal of the distinction between National Mortgage A and B shares was approved by shareholders at a meeting two weeks ago it

has been announced that this move has yet to be approved by the United Kingdom High Court.

Consequently the distinction, which had already been discarded, will again be recognised until the move is officially approved. U.E.B. Issue United Empire Box did not react very significantly to last week’s news that the group will issue 600,000 5s shares in Australia at a premium of 5s lOd (N.Z.). Some sharp reaction was expected because the issue price of 13s 6d in Australia compared with the New Zealand market price before the announcement of 13s or roughly 16s l|d in Australian currency. However the New Zealand market closed the week at 12s lid. Aim of the issue is to finance part of the group’s expansion in Australia. It will raise £324,000 and lift U.E. Box capital by £150,000 to £2,599,759. The shares, to be registered in Sydney and Melbourne, may only be bought by Australian residents. Subscriptions open on September 11 and the issue is expected to fill within a few days.

Only 50 per cent of the current year’s dividend will be paid on the new shares, but after that they will rank along with present U.E. Box shares. N.Z. Paper Shareholders of New Zealand Paper Mills at a meeting in Dunedin last week granted N.Z. Forest Products a quarter interest in their company for £500,000. They also approved a one-for-five cash issue at a 5s premium and a three-for-17 bonus issue. Removal of a voting restriction on shares was approved and permission given for the Fletcher Trust and Investment Company and N.Z. Forest Products to have two representatives each on the board. The chairman (Mr J. G. Dykes) told shareholders that the company would not pay a dividend this year, but hoped to make a payment in 1966. Tax Change Some slight changes in New Zealand taxation are being noticed just now by holders of Australian company notes. Tax on the interest from these notes is a little different than in previous years. Until the last taxation year, interest was counted as nonassessable for New Zealand tax purposes to the limit of tax exemption in Australia. Now all of the interest income is assessable. Where a note was issued in accordance with an offer made after September 8, 1960, the interest is regarded in New Zealand as a dividend, according to a taxation authority. It is taxed as a dividend and credit allowed for any Australian tax paid limited to the amount of the New Zealand tax on that Australian income. However, only nine notes of Australian companies are called on New Zealand stock

exchanges and some of these are quoted seldom, if at all. One broker last week said Australian notes were “not the most popular investment here.” The change seems likely to affect those getting income of any kind from Australia. Tekau Year In the report released late last week the chairman of directors of Tekau (Mr F. H. Mclntosh) said that trading for the first half of the year was largely as anticipated but results for the second half were greatly below expectations. Lower results in the outerwear section were caused by de'ays in delivery of yarn by some local spinners which led to difficulties in maintaining the plant in full production: delay in overseas deliveries; overhead charges in excess of that budgeted for; a change in Government policy whereby manufacturers now have to use much more locally spun yarns which led to changeover difficulties, and the inability to obtain from local spinners certain counts of yarn required for orders in excess of original estimates. Production in the underwear section has now been diversified so that it will not lean so heavily on underwear production, said Mr Mclntosh. Wool jersey production-con-tinued to trade satisfactorily but over-all the section showed a small loss. As in the outerwear section, the subsidiary company Bruce Hosiery and Knitwear was subject to a high depreciation of new plant which con-

tributed little. If any, to trading for the year. Bookings in the outerwear section for the spring indent were in excess of the same period last year while sales for the first half-year in Bruce Hosiery and Knitwear were about double those for the same period last year, says Mr Mclntosh.

Consol. Brick Sales Up (N.Z. Press Association) AUCKLAND, August 30. Sales of Consolidated Brick and Pipe Investments, Ltd., Auckland, in the first four months of the current year were about 13 per cent up on the previous corresponding period, the chairman (Mr L. J. Stevens), told the annual meeting. It was expected that this level would be at least maintained in the remainder of the year. Profit should again be satisfactory, said Mr Stevens. Business Personal Mr W. H. Simon chief manager for New Zealand of the Australia and New Zealand Bank Ltd., has left Wellington for discussions with the board of directors of the bank in London. He will also visit some of the bank’s principal agents in Europe and North America before returning to New Zealand about October 20.