COMMERCIAL Review Of Week’s Stock Exchange Transactions

Press, Volume CIII, Issue 30587, 2 November 1964, Page 18

COMMERCIAL Review Of Week’s Stock Exchange Transactions

Short trading weeks seem to have an upsetting effect on investors and last week, cut back to four trading days by the Labour Day holiday, was shaded with uncertainty with both New Zealand and overseas issues easier over-all. Both New Zealand and Australian key stocks were markedly easier on the week, but insurances and banks held a good tone. Only rises by second rank New Zealand issues gave the market a lift at the close.

This close-of-week boost did a little to check the easing trend shown by New Zealand issues on the other three trading days of the week.

There was not a great deal of company news during the week, apart from Vibrapac Wellington. Woolworths New Zealand, and Brierley Investments annual reports, but the balance sheet season is almost over. Optimistic interim reports came from Beechey and Underwood, and Rex Consolidated; both showing half-yearly sales and profits ahead of the same months of last year. Turn-over Low Turn-over for the week, as could be expected for only four trading days, was low, but average daily turn-over barely kept ahead of the lowest for the year. There was also a fairly nar-

row range of issues traded: leaders and the better known second rank issues made up the bulk of the week’s business. Among banks, A.N.Z. rose 9d to 56s on the week, Bank of New South Wales Australian and New Zealand registers both rose 6d to 57s 6d, and National Bank of New Zealand climbed 6d to 445. The only fall was by Commercial Bank of Australia, down 3d to 21s 6d. Breweries were weak. Dominion edged back Id to 18s, while Tui fell 3d to 10s 3d. No advances were shown in the section. Insurances Bright Insurances had a bright week. Every stock in this section made some gain, apart from infrequently traded shares. National Insurance made the best gain with a Is rise to a peak 30s, pushed up by market speculation on possible moves in the near future. New Zealand Insurance old moved up 2d to 26s 3d, the B shares 4d to 26s 4d and the C shares 3d to 26s 3d. South British old and B both rose 9d to 54s 3d. Canterbury Frozen Meat again moved up to sell 6d higher at 52s 6d, while Gear also advanced again with a 3d rise to a peak 24s 3d. No other gains, nor any falls were made by frozen meats. Loan and agency were erratic, but woollens and textiles showed a firmer tone than the week before. New Zealand industrials and retailers were particularly weak with declines more pronounced than advances. Gains in this section were made by Alex Harvey, New Zealand Newspapers, Ross and Glendining, Shari and and Wilson Cement. The unlisted Brierley recovered 6d to 6s. Television stocks again slipped back with losses by Autocrat, Charles Begg B and Pye Electronics.

Brierley Report R. A. Brierley Investments’ annual accounts, released on Tuesday, showed profit up from £4251 to £11,006 in the latest year. This result represents an earning rate of 8.6 per cent on greatly increased shareholders’ funds of £127,835 and covers the 10 per cent dividend requirement of £4OOO nearly three times. There are now six subsidiary companies within the group with gross assets totalling £508.635. Paid up ordinary capital is £40,000, reserves £87,835 and the asset backing for each 5s share 15s lid. Three successful take-over bids and the expansion into the Australian market where funds are invested in a wide range of industries, are listed' by the chairman of directors (Mr R. A. Brierley) aS the notable features of the year’s working. No Australian income has been included in the latest accounts which have borne the whole costs of establishment in Australia, he says. There are several current take-over offers for Australian companies and he expects that these bids will be successful. New Funds In line with the demand throughout New Zealand for new funds, three Christchurch companies last week announced plans for raising further capital. Vibrapac Blocks will make an issue of £lOO,OOO registered unsecured £1 notes at par to help finance expansion. An interim report showed that consolidated turn-over for the group had risen to £652,000 in the half-year to Sepetmber 30 against £428,000 for the same period last year.

A £400,000 debenture issue by Cash Order Purchases was announced on the same day. Of the issue, £250,000 will be reserved for existing debenture and deposit holders and the remainder will be available to the public. Relatively unknown to investors, Sales Expansion announced that it would make a first public issue of £30,000 in registered secured debentures. Sales Expansion was formed in 1955 to give financial support to business firms. Ampol Imports Ampol’s announcement that it would use imported crude oil for its £2lm refinery on the Brisbane river instead of oil from Moonie, caused as much interest as the disclosure of a record profit of £2.9m. Ampol claims the price of Moonie oil is too high and says that contractural arrangements for the supply of overseas crude oil have been made for the refinery which comes on stream in the middle of next year. While the strike at Mt. Isa continues the latest quarterly review by the Commonwealth Bureau of Mineral Resources says that the total mineral output for 1964 might be about £290m —only £9m above the 1963 output. Industrial trouble at Mt. Isa and earlier production losses at Broken Hill are reasons for the reduced gains. Sugar Stable For more than a month now the price of sugar has remained stable at £32 10s a ton and some London commentators believe that the bottom of the market has been reached. However, others say that with increased production of beet sugar in Europe and the likelihood of adequate supplies of cane sugar next year, prices could fall to £25 a ton by the end of the year. The market has been quiet in recent months and increased buying by consumers could keep the market steady. Stock Yields Yields on Government stock traded in Christchurch last week were 4 5-8 per cent 15/6/66-67, £4 6s Id per cent: 4f per cent 15/6/65, £4 6s lid per cent: 15/5/67, £4 5s 7d per cent; 15/9/67-69, £4 14s 8d per cent; 5 per cent 15/10/6668, £4 13s 3d per cent; 15/8/67-69, £4 14s 2d per cent: 15/9/81-83, £5 0s lOd per cent. Transactions last week on the Christchurch Stock Exchange were: Government stock, £6410 (£2OO previous week); local body and company debentures, £1550 (£3250); preference, 166 (529); banks, 1185 (2232): breweries, 6374 ( 3300): frozen meat, 1000 (1350); insurances. 3348 (4304); loan and agency, 8297 (14,374); shipping, 100 (nil); woollens and textiles, 4200 (4645): Australian miscellaneous, 8866 (10,984); New Zealand miscellaneous. 12.189 (22,166); mining, nil (300); .unlisted, 250 (300); total. 46,075 ( 64,481).