Review Of Week’s Stock Exchange Transactions

Press, Volume CIII, Issue 30629, 21 December 1964, Page 17

Review Of Week’s Stock Exchange Transactions

Mid-week recovery by New Zealand issues made the market much brighter last week, checking the run-down towards the Christmas break and the decline of recent weeks. Company news was also bright and there was an almost continuous flow of announcements of bonus issue plans by New Zealand companies.

Three Christchurch companies were among those announcing bonus issues to give their shareholders a seasonal present in the last full trading week before Christmas.

Canterbury Frozen Meat led the field with an announcement on Monday that it planned a one-for-three bonus issue that would lift paid-up ordinary capital to £l.2m.

At the same time C.F.M. announced recommendation of a 2t per cent bonus dividend, against 1) per cent last year, on its 6 per cent ordinary dividend. C.F.M. Peak

Market reaction to C.F.M.’s news was prompt. Tuesday’s buyers took the 20s ordinary shares to a peak 55s—5s up on last sales a week before.

On Wednesday Skellerup announced its long-expected bonus issue: a one-for-two. Some investors thought that

it could easily have been a two-for-one. This issue will lift Skellerup’s ordinary capital to £531,583 and after it is made the 20s stock units will be split into 10s ordinary shares.

Demand for Skellerup pushed the price up to £7 12s 6d at the close of trading—17s 6d ahead of the closing price of the week before. On the same day A. J. White announced its proposals for a one-for-six bonus that would take its paid up capital to £117,262. One-for-four bonuses are also planned by directors of two other companies: Armstrong and Springhall, and Joseph Nathan. John Duthie plans a one-

for-five bonus and to split its 20s shares into 10s units. Apart from Armstrong and Springhali’s bonus, all the issues will be made solely from pre-1957 profits. Turn-over Turn-over on the Christchurch Stock Exchange last week was slightly down, but share trading ranged over more issues than it had done for some weeks. However, at the close the market showed a marked recovery on trading during the last few weeks.

But the strength came from New Zealand issues. Overseas stocks, after fluctuating during the week, finished barely in balance.

Strongest sections of last week’s market were frozen meats, timber, woollens and textiles and New Zealand industrials and retailers.

The trend of insurances, loan and agency, shipping, mining and unlisted was uncertain during the week.

New Peaks

Six companies—four New Zealand and two Australian —reached new peaks, while two other New Zealand companies again touched record levels reached earlier. Harnish and Jordan rose 3d to 28s 3d, Manthel continued to improve with a Id rise to 255, while Mason Struthers touched a two-year peak with a 3d rise to 5s 3d.

1.C.1.A.N.Z., which earlier in the week announced plans for an £Bm synthetic rubber and carbon black plant near Sydney in partnership with Phillips Petroleum Company of U.S.A., rose 6d to a new peak of 495. Mount Lyell has made a spectacular rise from 4s lid in mid-July this year to a peak 8s lOd last week.

Equal peaks were reached by Andrews and Beaven, up 6d to 53s 3d, and Vibrapac Wellington, up 4d to 21s.

Mount Isa reacted to news of the industrial dispute, but less sharply than on its home market.

Beginning the week at 35s 3d, it slipped back to 33s 9d by Thursday, but recovered to close at the week’s opening price. Stock Yields Yields on Government stock traded in Christchurch last week were: 4 per cent 15/8/65-66, £4 7s 5d per cent; 4| per cent 15/11/70-72, £5 0s Id per cent.

Transactions last week on the Christchurch Stock Exchange were:—Government stock, £5OO (£5OOO previous week); local body and company debentures, £l5OO (£4325); preference, 3578 (1850); banks, 3719 (1695); breweries, 5600 (3100); frozen meat, 5550 (1100); gas, 300 (1743); insurance, 2750 (2300); loan and agency, 1337 (3455); shipping, 596 (1800); timber, 200 (nil), woollens and textiles, 4740 ( 4324); Australian miscellaneous, 9436 (9828); New Zealand miscellaneous, 33,742 (43,634); mining, 700 (1000); unlisted, 3271 (650); total 75,645 ( 76,479).