COMMERCIAL Review Of Week’s Stock Exchange Transactions

Press, Volume CIII, Issue 30569, 12 October 1964, Page 17

COMMERCIAL Review Of Week’s Stock Exchange Transactions

Whisky and television added interest to last week’s irregular market. There was a reaction to the news of a distilling licence granted to Wilson Malt and the Olympic Games pushed up the demand for TV sets, giving Bell, Group Rentals and Tye Electronics a boost.

Trading meandered rather uncertainly through the week, with an unexpected rise by New Zealand issues providing a bright spot on Wednesday, and the market was easing at the close.

However, on the week the market held firm. There were nearly twice as many New Zealand rises as falls and overseas advances kept ahead of declines over a moderate range of issues. The turn-over for the week was down.

Wilson Malt reached a peak 32s 6d on Friday in Dunedin sales —7s 6d up on the close the week before. News that the company was to be licensed to make whisky was not released until late on the Friday before last Buyers came in at 27s on Monday, but sellers kept off the market until the next day when Dunedin buyers paid 29s and those in Christchurch paid 29s 6d. On Wednesday there was a further gain to 30s, no sales were made on Thursday, but on Friday Dunedin buyers bought at 32s 6d.

Dom. Breweries Dominion Breweries rose steadily during the week in daily trading to advance to a four-year peak of 18s 4d in Auckland, while there were sales in Wellington on Friday at 18s 6d. This share fluctuated earlier this year, after opening at 16s 7d, but it has been climbing gradually since the end of August. However, the breweries section over-all was steady. Taranaki rose, but New Zealand Breweries and Tui lost ground. Other strong sections were frozen meats, with new peaks by Gear, Southland Frozen Meat, South Otago and Waitaki, and New Zealand industrials and retailers. Woollens and textiles continued to ease; the only gain was by Manawatu. Profit Rise Simpson and Williams maintained its sales during the year and improved its profit slightly to £7024. Steady dividend of 12} per cent takes £4500 and is covered by profit one-and-a-half times. Simpson and Williams is seldom traded. Only two sales have been made this year, both in Christchurch and at a steady 565. Profit has shown small but significant rises in recent years. Since 1950, two bonus issues have been made, the last in 1962 when a one-for-two issue raised ordinary capital from £24,000 to £36,000. Mason Struther’s latest profit of £13,267 is its highest in recent years bettering 1961’s profit by £941. Improved sales in the builders’ supply section helped lift turn-over. Future plans calls for the transfer of the bulk stores to the suburbs, to improve the service to builders and tradesmen, and a retail store at Papanui. Dividend has been raised from 5 per cent to 5} per cent and takes £12,100. It is covered 1.1 times by profit. Myer Peak Australia’s biggest department store, the Myer Emporium, last week announced that the group had again lifted sales and profit to new peaks. A 6.4 per cent rise in sales took them to £121.7m, the highest reported by an Australian retailing group.

The latest sales increase‘is £7.3m against £10.6m the year before and £lsm the year before that. Consolidated profit, after higher provisions, rose £582,316 to £5,277,161, taking in undisclosed outside shareholders’ interests and capital profit took just below £640,000 last year. If about the same amount is required for outside interests and capital profit this year, the rise in final net profit could be about £525,000. Nat. Mortgage National Mortgage and Agency announced a final dividend of 7 per cent as well as a special centennial bonus of 4 per cent. With the 4 per cent interim dividend, total dividend will be 15 per cent, taking £337,500 (£247,500 last year). Even after bonus payments to retired and present staff members, profit rose £163,587 to £684,593 and covers dividend requirement more than twice. Once capital changes have been confirmed by the high court and resolutions passed by shareholders become effective, directors propose to capitalise £562,500 from reserves. This will be used to convert the existing issued ordinary shares of 4s each to ordinary fully paid 5s shares. Computer Move Teashops and computers seem to have little in common, but news last week that Amalgamated Wireless of Australia and English Elec-tric-Leo have jointly sponsored an Australian computer company has an interesting background. Leo’s experience in the computer business—an increasingly tough computer-eat-computer world—is based on operations for Lyons, the English chain of teashops. American know-how and the foresight of adapting computers to the needs of industry, instead of merely for scientists, has allowed United States computer interests to elbow nearly all British and Continental computer manufacturers out of the market. However, according to the “Economist,” English ElectricLeo is ready to battle with the computer giants. Expertise The “Economist” says the organisation’s success so far has been based on a good computer combined with an expertise in certain types of commercial operations. This was acquired in Leo’s experience with Lyons teashops, for which and by whom it was designed. “It is described bitterly by competitors as a creamskimming operation. Clever puss?”, the “Economist” adds. English Electric-Leo will have 60 per cent of the new Australian Company—Australian Computers Pty.—and A.W.A. the remaining 40 per cent.

It is a merger of the two company’s present computer interests.

The new organisation will market the whole range of English Electric-Leo computers and associated equipment. Its progress in this part of the world will be worth watching.

Olympics And TV Even the most anti-televis-ion minded households start wondering if a set may be worth while having around the place when something like the Olympic Games comes along. News of increased demand for sets, from both retailers and rental firms, gave a lift to television stocks last week. Early in the week Group Rentals, one of the two largest television hire organisations, announced a fullysecured debenture issue. •This firm seems to feel there is a big future in this country for rental television and believes that by the time saturation is reached in five or six years’ time 25 per cent of sets will be rented. But whether buying or renting is best, television stocks seem to have settled comfortably on the stock exchange list and the picture seems good. Coast Concrete West Coasters showed little interest in the abortive attempt by Coast Concrete, Ltd., to establish a concrete manufacturing industry at South Beach, Greymouth. In the four months since opening subscription lists on June 2, Coast Concrete could raise only £30,000 of the minimum requirement of £70,000. Of the 60 applications from Greymouth, only eight came from local businessmen and the bulk of the £l5OO subscribed from the town came from two men. Coast Concrete suffered an early set-back with the resignation of one of its foundation directors, Mr R. C. Neville.

Late in July directors said that the successful flotation of the company, “in view of past opposition,” was a direct challenge to the West Coast but this and subsequent appeals brought little response. Authorised capital of Coast Concrete was £lOO,OOO in 5s shares. The public was offered 390,000 shares and directors held 10,000. Stock Yields Yields on Government stock traded in Christchurch last week were:—4| per cent 15/6/65, £4 Is 7d per cent; 15/8/67-69, £4 14s 2d per cent; 5 per cent, 15/6/73-75, £4 19s 3d per cent; 15/8/66-68, £4 13s 6d per cent; 15/10/66-68, £4 13s 5d per cent; 15/10/7678, £5 Is Od per cent. Transactions last week on the Christchurch Stock Exchange were:—Government stock, £22,445 (£2350 previous week); local body and company debentures, £BBOO (£7850); preference, 1400 (800); banks, 750 (250); breweries, 2500 (3900); frozen meat, 1900 (2950); gas, 300 (800); insurances, 800 (2200); loan and agency, 7509 (1813); shipping, 120 (nil); timber, nil (400); woollens and textiles, 8658 (5700); Australian miscellaneous, 5000 (9500); New Zealand miscellaneous, 27,157 (33,780); miniing, 400 (400); unlisted, 540 (500); total, 57,035 (62,993).