COMMERCIAL Review Of Week’s Stock Exchange Transactions

Press, Volume CIII, Issue 30539, 7 September 1964, Page 17

COMMERCIAL Review Of Week’s Stock Exchange Transactions

Advances by New Zealand issues again gave a buoyant tone to the share market last week, with key stocks showing rises ahead of falls, but overseas shares held roughly in balance. New Zealand industrials and retailers were an active section of the market, while turn-over of loan and agency stocks was well ahead of the week before, but on the week a slightly narrower range of shares was traded. News of a premium issue by Wright fat-Virtue 12s 6d ordinary Stephenson and of merger talks between New shares is 20s 6d, but the last Zealand Refrigerating and Meat Packers ? shari? y “ brought about some sharp price reaction.

Turnover on the Christchurch Stock Exchange last week rose sharply on the week before from 66,676 shares, notes and rights, to 89,469. Tuesday’s turnover was 20,998—the highest for the week—while average daily turnover was 17,938. New Peaks New peaks in the New Zealand list were again a feature of trading. Twenty-five New Zealand issues reached new peaks, while two equalled peaks reached before this year. Among these were New Zealand Refrigerating, Southland Frozen Meat, Waitaki, A. and T. Burt, Claude Neon, Cory Wright, Coulls Somerville, Dunlop, Donaghy old and B, Lichtenstein, General Foods, Group Rentals, Henry Berry, McSkimming, Neill Cropper, Farmers Fertiliser old and B shares, N.Z. Forest Products old and B, Smith and Brown, Vibrapac Wellington, Williamson Jefferey, and Wilson and Horton. Strongest sections of the market were banks, breweries, frozen meat, timber and New Zealand industrials and retailers. Insurances, woollens and Australian industrials and retailers lost ground on the week. Breweries Dominion Breweries rose 2d to 17s 6d and New Zealand Breweries 4d to 14s lid. These were the only fluctuations in this section. Bank of New South Wales rose Is 3d to 57s 3d, C.B.A. 6d to 21s 6d and National Bank of New Zealand 6d to 465, giving a lift to banks. Among frozen meats, Meat Packers went up 6d to 8s while the notes fell 6d to 6s 6d, but these sales were before news of merger negotiations. Southland Frozen Meat rose further to 29s 6d, and Waitaki 9d to 19s 6d—both new peaks. South British made the only gain among insurances with a 6d rise to 535. National Insurance fell 6d to 27s 6d, New Zealand Insurance 6d to 26s and the B and C shares 3d to 25s 9d. Loan and agency were irregular. Woollens showed five falls to two gains. Tekau recovered Is to 20s. W.S. Terms A downward trend in the price of Wright Stephenson’s shares during the week mirrored the market’s disappointment at the terms of the company’s share issue announced last Monday. When the preliminary announcement of the issue was given oh August 20 the old shares jumped 2s to 45s but at the close of last week they sold at 425. The issue is one-for-ten for both old and B shares at a premium of 10s a share and if fully taken will raise £795,000. As well, 50,000 ordinary shares at the same price but subject to certain restrictions will be offered to the staff.

The new shares will not qualify for any interim dividend for the half-year to December 31 but will rank for the full final dividend declared in the current year. Shareholders will be asked to approve cancelling the unissued 5| per cent cumulative preference shares and to create a new class of cumulative preference shares carrying a dividend rate of 6 per cent. Merger Talks On Friday directors of New Zealand Refrigerating and Meat Packers New Zealand announced in a joint statement that they had been having talks on amalgamating the interests of the two companies. However, they gave no details, but said Meat Packers ordinary shareholders and note holders would be told more later. Meantime, both note and shareholders have been told not to sell their holdings in Meat Packers until they know the outcome of the negotiations. New Zealand Refrigerating closed the week Is 9d up at a peak 245, but no sales of Meat Packers shares or notes were made after the announcement. Motor Spec. Auckland automotive parts, manufacturer and distributor Motor Specialties showed consolidated net profit 12.5 per cent up to a peak £121,000 in the latest year, directors announced last week. Bonus and cash issues during the year lifted capital. Latest result is roughly 20.5 per cent on average capital, against 25 per cent on lower capital last year. Latest dividend of 10 per cent equals 12 per cent before the one-for-five bonus issue. During the year the company also made a one-for-four cash issue at a premium of 5s for each 5s share. Brierley Bid R. A. Brierley Investments made its third take-over offer in a month last week with a bid for Moffat-Virtue of Sydney. Moffat-Virtue has an impressive list of interests in manufacturing, importing and distributing, but its recent dividend performance has not been so impressive. Directors of Moffat-Virtue said that legally the bid was not an offer under the New South Wales Companies Act, but had it been made under the terms of the act they would have rejected it. This is Brierley’s second attempt to move into Australia. Early in August the company bid for Kalgoorlie Goldfields Petroleum, but although the offer is still current directors have recommended rejection. Although Brierley made the bid on August 25 for a 55 per cent interest in Moffat-Virtue, the Sydney Stock Exchange was not told until late last Thursday. Net assets backing of Mof-

Gen. Foods General Foods announced profit £23,741 or 9.8 per cent higher at £265,104 in its latest year, but this was not enough to maintain its earning rate on higher shareholders’ funds. Earning rate on shareholders’ funds of £2,390,250 (£2,118,290) last year fell to 11.1 per cent from 11.4 per cent. In its latest year and since balance date General Foods acquired eight companies or their subsidiaries and now has most of the ice-cream market in New Zealand. Take-overs during the year increased capital by £80,299. A steady 11 per cent dividend takes £6176 more at £145,867 and is covered by profit 1.82 times. Bond’s Half-Year Bonds Hosiery ! s interim report that group profit for the first-half of the financial year was slightly less than at the same time last year reflects the keen competition in the hosiery field. With the purchase of Hillcastle (N.Z.) Ltd., and Eugene (N.Z.) Ltd., Bonds operates in three different fields. Profits from the two lingerie factories in Auckland were satisfactory in the halfyear while profits from the women’s hairdressing suppliers and allied trades were up to expectations. A 28 per cent rise in turnover from an upsurge in industrial construction lifted Wormaid Brothers’ net profit to a peak £82,847 in its latest year. Originally this company operated solely as fire-protection engineers but lately it has expanded to include building services and materials, in-dustrial-safety equipment and industrial tubular-steel fabrication, with offices and factories throughout New Zealand. This is the company’s seven-ty-fifth year but diversification has come only in later years. Ordinary paid capital has risen from £71,500 in 1958 to £262,500 in its latest year. Although 98 per cent of the company’s shareholders live in New Zealand, 56 per cent of the paid-up capital is owned by the parent Company, Wormaid Brothers Industries, Australia. Ordinary dividend is a steady 10 per cent taking £26,250 and is covered by profit 3.2 times. Stock Yields Government stock traded in Christchurch last week yielded:—3 per cent 15/7/63-65, £4 0s 7d per cent; 15/5/64-66, £3 19s lOd per cent; 4 5-8 per cent, 15/5/64-66, £3 19s 8d per cent; 4J per cent, 15/9/67-69, £4 11s 4d per cent.

Transactions last week on the Christchurch Stock Exchange were:—Government stock, £28,470 (£21,560 previous week); local body and company debentures, £750 (£5600); preference, 214 (138); banks; 500 (514); breweries, 4600 (4751); building

societies, 29 (297); frozen meat, 1898 (1770); gas, 800 (300); insurances, 7300 (1050); loan and agency, 6300 (965); shipping, nil (1142); timber, nil (500); woollens and textiles, 6953 (9300); Australian miscellaneous, 7700 (8401); New Zealand miscellaneous, 48,663 (37,248); mining, 1100 (nil); unlisted, 3262 (300); total, 89,469 (66,676).