Interest In N.Z. Shares On Aust. Markets

Press, Volume CVI, Issue 31239, 10 December 1966, Page 20

Interest In N.Z. Shares On Aust. Markets

(N.Z. Press Association —Copyright)

SYDNEY, December 9. Expatriate New Zealand money looking for arbitrage gains appear to be behind the recent upsurge in buying interest for N.Z. stocks on Australian share markets, “The Australian Financial Review” reported today.

The newspaper said: “Sup- : port for N.Z. stocks on local ; share markets has been unusually high on several occa- ; sions over the last month, < with recognised New Zealand : traders dominating buying. “Nearly six months ago the : New Zealand Government clamped further restrictions on the purchase of Australian shares by New Zealand investors and buying of Australian stocks direct from New Zealand has dried up considerably. “Before the restrictions were forcefully introduced, ; genuine New Zealand investment in Australian shares was i diminishing in any case. Erratic Performance “This was partly due to the erratic performance of Aus- j tralian share markets when ; gauged against the New Zealand market and also to the , change was envisaged, said , Mr Woolier. i flood of new listings on the

N.Z. market over the last few years. “Restrictions on private portfolio investment outside of New Zealand have been in force for nearly 25 years, but the recent new limitations made it even more difficult for New Zealand investors to buy shares outside of the country. “The stringent measures have since been modified after strong protests from New Zealand investors and Stock Exchanges and trading has been re-introduced—but all scrip from such transactions must be lodged with a depository approved by the Reserve Bank. N.Z. Re-Sale “Securities so purchased may then be resold only in New Zealand. “New Zealand traffic to some Sydney brokers was more lucrative than interstate business, and it was feared that the new measures would considerably reduce trans-Tasman business, which had mainly developed into a one-way flow. “But- six months later, most brokers report that business has not been affected to the extent they earlier envisaged.”