Review Of Week’s Stock Exchange Transactions

Press, Volume CIV, Issue 30884, 18 October 1965, Page 19

Review Of Week’s Stock Exchange Transactions

Spring caught up with the New Zealand share market last week and the sun came out for the first time since the middle of August as rises moved ahead of falls. Both the New Zealand and Australian lists basked in the sunshine although it was not until the last part of the week that the lift came and there was no definite pattern. Key stocks were also firm on the week but much of the strength come from second-rank issues. Rights again featured and the tone was firm..

Claude Neon rights made the best gain on the rights market closing the week 2s 3d up at 15s 3d after touching 15s 6d mid-week.

Winstone rights moved up Is 2d on the week to 12s 6d—--3d higher than the opening price on September 15. Banks also improved. A.N.Z. Bank rose 2s to 50s 6d. Bank of New South Wales 6d to 51s and Commercial Bank of Australia 3d to 20s.

New Zealand Refrigerating dividend deferred shares recovered Is to close at Us 6d, while South British Insurance added Is 5d to 30s Bd. New Zealand Newspaper rose Is 4d to 67s 6d ex dividend and Vibrapac Wellington 2s 6d to 24s 6d.

1.C.1. (N.Z.) A highlight of company news last week was the announcement that Imperial Chemical Industries (N.Z.) would offer a proportion of its equity to the New Zealand public. Terms of the share offer will be announced “at an early date,” according to the company. At present 1.C.1. (N.Z.) is a wholly-owned subsidiary of Imperial Chemical Industries of Australian and New Zealand. A little more than 60 per cent of 1.C.1.A.N.Z. is owned by Imperial Chemical Industries of the United Kingdom. 1.C.1.A.N.Z. shares are already listed on New Zealand stock exchanges. Talks between the Minister of Industries and Commerce (Mr Marshall) and the chairman and managing director of 1.C.1.A.N.Z. (Mr J R. A.

Glenn) preceded the decision to float ’.C.I. (N.Z.). Mr Marshall said it was Government policy to encouraged overseas companies in New Zealand to invite local investors to participate. The calls for more funds continued last week. Cash Order Purchases plans a £150.000 debenture issue later this month while Hume Industries wants to raise £250.000 by a note issue to provide more working capital. C.O.P. announced in August that it intended to make ani other debenture issue. In June, an earlier debenture issue was , closed after being over-sub- \ scribed by £lOO.OOO. j The planned issue will carry ■ interest rates ranging from ! 7 per cent for 10 years down | to 6 per cent for two years. Interest rates on Hume’s

note issue will vary from 6} 1 per cent to 7 per cent. A 20 per cent rise in profit: by Motor Traders will mean that a steady 11 per cent dividend can be paid comfortably on capital increased by last year’s one-for-six bonus. Dividend payment should take about £6944 more at £41,765 on ordinary shares while preference payment will be £3OOO. All this will be covered more than twice by the preliminary profit figure of £95.700. Earning rate on ordinary capital, £63,134 higher at £379,688. is 24.4 per cent against 24.2 per cent last year on the old capital. This is the fourth time since 1955 that Motor Traders has maintained its dividend rate after making a bonus issue.