Quarterly Review Of Share Market

Press, Volume CIV, Issue 30794, 5 July 1965, Page 17

Quarterly Review Of Share Market

Pessimism seemed to be the keynote of the New Zealand share market as the June quarter came to a close after a month of continuing decline in share prices. Right through June the market had been nervous and prices drifted lower for both New Zealand and Australian shares, although the overseas list was showing signs of steadying at the close.

This steadying became an upward trend in Australia just after the close of the quarter and the end of the Australian financial year, but it came too late to have any effect on the New Zealand market.

New Zealand share prices sagged a little at the beginning of the quarter, steadied and then began to advance again. There was a steadying again late in May, then began the downward drift through June. By June 24 the Reserve Bank index of New Zealand share prices had fallen to 1573. This compares with the peak 1668 reached on February 11 this year. During the quarter Australian shares ran well below the 1663 peak reached on July 16 last year. Australian prices were less regular in their trend: dipping sharply at the end of April, improving in May, easing at the start of June, lifting again early in the month, then falling. N.Z. Budget Early in June came the New Zealand Budget and at the same time some gloomy words from the Australian Federal Treasurer (Mr H. Holt) about what his Budget might contain. Share prices in New Zealand were already easing when the Minister of Finance (Mr H. R. Lake) brought his Budget down and nothing in it checked the slide. What Mr Holt had to say about his Budget had a more marked effect on the Australian share market and on the price of Australian shares in New Zealand.

However, there were many other factors affecting the market.

Among these were the war in South Vietnam, a fall in the Australian wool cheque •nd drought conditions in Australia. No Pattern Tracing a definite pattern of share trading during the June quarter is not easy. However, one thing is certain: the New Zealand share market is much more sensi-

tive to events at home and overseas than it has ever been before. In the last week of the quarter New York and London lost ground. Australia: eased in sympathy and New' Zealand followed suit. When New York began pick-i Ing up again. Sydney and Melbourne improved and, too late i for the quarter. New Zealand lifted too.

On the three months the best sections of the list were frozen meat, building and motor distributors. C.F.M. Up Canterbury Frozen Meat closed the quarter Is 6d up at 395. but this share had been up to 41s 6d. It was falling at the close. N.Z. Refrigerating rose Is 9d to 17s 9d after improving into June then holding the higher level. Southland Frozen Meat was recovering at the close after a slight setback and traded 2s up at 23s 6d, after touching a peak 26s 3d during the quarter. The emphasis in the building section was on sawmillers and builders’ suppliers, showing a trend to home building rather than large-scale construction. C. and A. Odlin rose 3d to 21s, Carter Consolidated Is 9d to 47s 6d, Consolidated Brick 6d to 31s, Firth 5s to 455, Henderson and Pollard Is to 18s 6d, Robert Holt 3d to 9s 3d and Winstone Is 3d to 52s 3d. Cement manufacturers lost ground after the announcement of curbs on major building. Golden Bay closed Is 9d down at 14s 6d and Wilson Cement 9d down at 28s 6d. Little Effect

Changes in the no-remit-tance scheme had little effect on motor distributors. Manthel rose 6d to 27s 6d, Porter 3s 6d to 29s 6d. Schofield 3s to 54s 3d and Tappenden Is 9d to 25s 3d. Banks followed an uncertain trend. KeV stocks in this section. Bank of N.S.W. lost 3s 9d to 51s. Breweries were also somewhat erratic. News of the

beer price rise unsettled this section about two weeks ago. Dominion Breweries twice went to 18s 4d during the quarter, but finished steady at 18s.

New Zealand breweries reacted more sharply to the price rise, but closed 7d down at 13s lid. In the first week of the quarter it went to 14s 9d and touched this level again early in May. Before the rise was announced this share was 14s: the market pushed the price to 14s 6d in Christchurch on the Monday, but profit-taking soon cancelled out the gains.

Woollens and textiles did not do so well over the quarter. Mosgiel rose 3d to 17s, but Alliance lost 6d to 12s 6d, Bonds Is to 21s, K.P.G. 3d to 6s lid, and Lane Walker Is 6d to 16s 6d. New Zealand retailers and distributors were also a weak section. There were only five gains but 12 falls. Armstrong and Springhall, office equipment suppliers, rose 2s to 50s, while Beaths, department store retailer, rose 5d to 8s 2d.

Falls by New Zealand industrials outnumbered rises by more than two to one. Sharpest gains in this section were made by A. and T. Burt, C.P.D., Cyclone, Dunlop, John Chambers—on possibility of take-over —Reid Rubber, Rheem and Rothmans. TV Stocks Television stocks were irregular. Bell finished the quarter 2s 9d up at 375, but Autocrat lost Is lid to 15s lOd, Charles Begg Is to. 25s and Pye Electronics Is 5d to 19s 7d.

Turn-over for the quarter was 1,088,255 shares, notes and rights, against 974,007 for the March quarter and 1,078,175 for the June quarter last year. Details of turn-over:—

Government stock, £76,935 (against £72,155 in the March quarter): local body and company debentures, £54,345 (£27,100): preference, 31,181 (19,637): banks, 20,509 ( 8380): breweries, 60,605 (17,820): building societies, 18,685 (1067): frozen meat, 55,744 (48,162); gas, 2605 (7528); insurance, 35,530 (33,862): loan and agency, 98.967 (85,867): shipping. 6167 (2685); timber, 3700 (nil): woollens, 54,082 (56,287); Australian miscellaneous, 191,306 (134,704): New Zealand miscellaneous, 459,692 (428.866); mining, 31.935 ( 54,650): unlisted, 17,547 (9614); total, 1,088,255 (974.007).