FINANCE AND COMMERCE Review Of Stock Exchange

Press, Volume XCV, Issue 28258, 22 April 1957, Page 13

FINANCE AND COMMERCE Review Of Stock Exchange

(By Our Commercial Editor) The sharemarket closed for Easter with many securities at record levels. Last week’s buoyant m^r ket carried the prices of nearly all the shares which have lately been in demand past their previous week’s figures, and rises exceeded falls in Christchurch by more than two to one.

Turnover showed the usual drop recorded in the week before Easter. As in 1956, the volume of business m Christchurch failed to reach half the previous week’s figure. Australian stock exchanges wul open this Friday, and New Zealand exchanges the following Monday.

The Government stock market, i though inactive, was firm last ; week. For two months now market yields on stock have tended to fall. It is a reasonable assumption that the main force behind this move has been Treasury buying, in preparation for the opening of the first new loan for the year. Further Support Needed Intensified buying support will be needed if the Government is to fill even a modest loan at the terms offered last year—4 3-8 per cent, for three years, 4J per cent, for five years, and 4 5-8 per cent for 10-11 years. Yields to maturity on each of these issues, in their last recorded transactions, are as follows: 4 3-8 per cent. 1959, £4 11s 5d per cent; 4} per cent., 1961, £4 12s 4d; 4 5-8 per cent., 1966-67, £4 14s 8d per cent. Because of the high rate of spending this year, the Government is likely to ask for £2om or so from the loan market, and is expected to make two approaches to the market. The first will probably be announced soon after the Easter recess. In addition, the 3 per cent. 1955-58 loan falls due for redemption in February next year. Some £2om of this loan is still publicly held, and the Government will probably attempt to convert the loan before the end of 1957. Details of transactions on the Christchurch Stock Exchange last week, with figures for the previous week’s transactions in parenthesis, are as follows:—Government stock, £6220 (£8750); local body and company debentures and stock, nil (£500); banks, 230 (10); breweries, 541 (399); frozen meat, nil (225); gas, 400 (400); insurance, 450 (1260); loan and agency, 1350 (4183); woollens, 700 (2000); miscellaneous, 8337 (17,698); overseas listings, nil (250); Australian mining, nil (200); unlisted, nil (2020); total, 12,008 (28,645). Yields to maturity on Government stock traded in Christchurch during the week were: 3 per cent. 1957-60, £4 12s lOd per cent.; 4J per cent. 1961, £4 12s 7d per cent.; 3 per cent. 1960-63, £4 13s 9d per cent.; 32 per cent. 1965, £4 14s 6d per cent. Hay’s preference eased to sell at 20s 2d. Airwork preference, in first business for some time, changed hands at 21s 3d. Banks Firm Bank of N.S.W. and Commercial Bank of Australia were firmer in sales at £3l 7s 6d and 14s lid respectively. A.N.Z. sold at the steady price of 37s 6d.

N.Z. Breweries gained Is 6d in a sale at 47s—a measure of the gains made in active trading elsewhere since previous Christchurch business on April 11. Wednesday’s business in Christchurch was written at 47s 3d and Thursday’s at 47s 6d. No business was recorded in the frozen, meat section. Christchurch quotations and business elsewhere continued the upward movement of shares in this category. Closing buyers’ quotations for Canterbury and N.Z. Refrigerating were above this year’s and last year’s highest prices. Gas Shares Christchurch Gas, paid, eased to sell at 21s 6d after the dividend announcement. The fall, though slight, is hard to account for. The 4 per cent, dividend payment was resumed this year, after being omitted during the 15 months ended March 31 last y ® ar (when the balance date was altered). Shareholders could scarcely nave expected more than 4 per cent, this year, and to some, at least, the announcement was a pleasant surprise. Auckland Gas, in first local business for some time, sold for 8s 9d. South British Insurance shares again made spectacular advances compared with previous Christchurch business two weeks earlier. Christchurch business was written at 88s, and sales were made in Auckland up to 88s 9d. N.Z. Insurance sold at the previous week’s highest price of 84s. N.Z. Farmers’ Co-operative A preference shares were steady in business at 15s. Wright, Stephenson sold 3d higher on Monday at 40s 9d. Later business was done at 41s. Dalgety A and B were firmer on quotation. Felt and Textile, Australia, sold at 19s 6d, unchanged. Tekau Knitwear were .steady in an early sale at 255, later business being done 3d higher. Australians Variable Australian - domiciled securities showed variable price movements. 1.C.1., A., N.Z. made the best gain of the week in this section, selling at 40s 6d. Smaller gains were made by Woolworths (16s lOd, 16s lid, and 17s), and Coles (20s 4d, after selling unaltered at 20s). E.Z. Industries (19s 6d), Waltons (14s 6d) were steady, and Dunlop Rubber (275), Ampol (8s 6d), and B.H.P. (38s) were easier. Cory-Wright and Salmon (225) and Andrews and Beaven (225) each added Is to their last Christchurch price. Other gains by New Zealand-domi-ciled shares were shown by Hauraki Whaling (ss), Reid Rubber (29s 6d), and Forest Products (17s 3d). McKenzies rose 6d to sell at 25s 6d. but later business was written at 25s 3d. Woolworths (N.Z.) sold at the higher prices of 20s 4d and 20s 3d. Watties Canneries (25s 3d), and Farmers’ Fertiliser (365) were easier, and K.P. Drugs (£5 Ils 6d) sold unaltered. Claude Neon (48s 9d) reappeared on the sales list.