COMMERCIAL Review Of Year’s Stock Exchange Transactions

Press, Volume CIII, Issue 30633, 26 December 1964, Page 10

COMMERCIAL Review Of Year’s Stock Exchange Transactions

Share prices on New Zealand stock exchanges during 1964 maintained the higher levels reached by the end of the year before, but the main feature was the widening of the gap between prices of New Zealand issues and Australian issues from the middle of the trading year.

Australian shares traded in New Zealand climbed sharply at the start of the year, according to the Reserve Bank index, moving well ahead of the steadier trend by New Zealand stocks in the first three months.

Both Australians and New Zealand issues edged back slightly in mid-February, but then climbed to new index peaks in early March—■ with Australian shares still well ahead.

Another set-back came early in April, but then all share prices took a turn for the better and moved upward again.

New Zealand issues climbed more steeply during the next three months and went on to take the lead in early July, when New Zealand share prices touched practically their highest point ever. Australian shares touched their peak for the year a week or so later, but then came the parting of the ways. New Zealand issues continued running at a fairly high level, but Australian shares lost ground sharply, apart from a minor recovery in September, to the end of the year’s trading. Market Reaction Market reaction to overseas news is always more marked in Australian than New Zealand, and in the last months of this year the Australian market has had quite a lot to react to.

Upsetting factors in the overseas markets were the General Election in Britain and the Presidential election in the United States. Before the election in Britain, speculation on whether there would be a change of Government caused irregularity on the London Stock Exchange, as opinion polls tugged investors first in this direction, then in that. Emergency measures rushed through immediately after the election by Mr Harold Wilson’s Labour Government aimed at correcting Britain’s economic difficulties also caused uncertainty on the share market. News of the raising of the British Bank rate to 7 per cent followed by a rise in the discount rate of the United States Federal Reserve Bank also caused wavering by investors. There were suggestions that Britain’s economic moves might cause some investment to be switched to Australia, but there has been no solid move in that direction. N.Z. Prices Had this happened the price of Australian shares in New Zealand would have been pushed up sharply as demand came from another direction. As it turned out, New Zealand’s share market seemed relatively undisturbed by events overseas and prices, with some intermittent irregularity kept a fairly firm tone. Enthusiasm by investors in New Zealand has kept the market buoyant and new issues during the year have been quickly swept up. While small investors in Australia are still looking back over their shoulders at the dark days of 1960 and 1961, investors here have a confidence that has kept the market fairly bright. Echoes of the crash of Standard Insurance have now died away and, in any case, this seems to have been seen as something isolated and unlikely to recur. Australians still have bitter memories of investments that crumbled away with the fall

of chromium-plated, glasswalled, multi-storeyed company empires. Top Stocks Listed on this page are the 40 most frequently traded shares, based on “The Press” index, and their opening and closing prices for the year. The two key brewery stocks —New Zealand and Dominion —both showed gains on the year.

Among frozen meat, C.F.M., with a bonus issue coming up. New Zealand Refrigerating, after a bonus and a share split, and Southland Frozen Meat all improved on the year.

Insurances were more erratic. N.Z. Insurance moved up. but National and South British, after its bonus issue, both slipped. Wright Stephenson and National Mortgage held steady in the loan and agency section, while woollens have been less popular. Television stocks also featured during the year, particularly around the time that there were suggestions of a second television channel. Bell. Charges Begg and Pye Electronics all made good gains. Australian Shares Australian leading stocks traded in New Zealand, all showed an easier trend. Colonial Sugar, of course, fluctuated widely because of the decline in world sugar prices but showed some signs of improvement towards the close.

8.H.P., probably the most popular Australian stock traded in New Zealand, held steady over the year.

Share turn-over on the Christchurch Stock Exchange this year rose 146.230 to a new peak of 3,949,580 but the increase was not as spectacular as in 1963, when the rise was I.lm.

Sections to show rises were building society, frozen meat, insurance, loan and agency, New Zealand miscellaneous and unlisted.

Preference, banking, breweries, shipping, timber, Australian miscellaneous and mining sections were less active than in 1963.

Government stock, local body stock and debentures, and company fixed term stock and debentures, had a busier year with turnover rising £91,001 to £531,858. Details of turnover in Christchurch in each quarter of 1964 with the comparable 1963 figures are:— Stock Shares £OOO £OOO 1964 1963 1964 1963 Ist Quarter 182 140 905 784 2nd Quarter 71 117 1078 974 3rd Quarter 144 99 1049 1006 4th Quarter 135 84 917 1038 532 440 3949 3802 Last Week Trading last week was firm and, as was expected, towards the end of the three days the market was light. Leaders gave much of the strength on Monday and Tuesday but on the final day rises just shaded falls. In the middle months of

next year Christchurch Stock Exchange will change to post trading. A sub-committee has been examining the problems that might have to be faced. Since Wellington changed over to post trading some business has been by-passing the local exchange and the Christchurch move is a logical step. It has been easy for some business to be carried out between the twice-daily calls through the Wellington exchange. Christchurch brokers have been able to carry out some deals during the day with a quick long-distance call to Wellington. Soon it will be much easier with a quick telephone call to the local trading floor. Stock Yields Yields on Government stock traded in Christchurch last week were: 4j per cent 15/11/65-66, £4 5s Id per cent; 4j per cent 15/7/70, £4 15s 6d per cent; 5 per cent 15/8/6668, £4 12s 5d per cent; 15/8/67-69, £4 13s 11} per cent.

Transactions last week on the Christchurch Stock Exchange were: Government stock, £6lOO (£5OO previous week); local body and company debentures, £3OO (£1500); preference, nil (3578); banks, 1305 (3719); breweries, 4900 ( 5600); frozen meat, 1050 (5550); gas, 300 (300); insurance, 1216 (2750); loan and agency, 3800 (1337); shipping, nil (596); woollens, 2250 (4740); Australian miscellaneous, 4841 (9436); New Zealand miscellaneous, 20,312 (33,742); mining, 500 (700); unlisted, 1200 (3271).