COMMERCIAL Review Of Week’s Stock

Press, Volume XCV, Issue 28269, 6 May 1957, Page 14

COMMERCIAL Review Of Week’s Stock

Exchange Transactions

(By Our Commercial Editor)

When trading resumed last week after the Easter recess the sharemarket quickly sprang to life and pushed prices and turnovers up still further. Price rises outnumbered falls in Christchurch by nearly three to one. The large turnover was spread over many issues, nearly every section of the quotation list being represented. Notable, even among last week’s widespread advances were the prices paid, or unsuccessfully ottered, for shares in frozen meat companies. The South Island companies’ shares arc particularly in demand: buyers on Friday ottered £2B 10s (compared with last recorded business at £26) tor Canterbury Frozen Meat shares without attracting a seller.

The market has great expectations of the frozen meat companies this year, and specially those handling mainly sheep and lambs. There is good ground for this confidence. New Zealand lamb and mutton have fetched higher prices at Smithfield for most of this season than they did last season, and although the meat pro- , cessors have had to pay farmers - more for their stock, Smithfield realisations can seldom have disappointed the exporters. The wool market, too, has been gracious to the meat companies. By the nature of their business they are large-scale speculators in wool, and the wool allowance paid to the owner of mutton killed for

• expiort must be conservative to guard against a fall in the market. “Wool prices, now at the highest levels for three years, are expected in overseas trade circles to be maintained during the balance of the season which ends on June 30.” according to Winchcombe, Carson, the Sydney woolbrokers. If they are maintained the frozen meat companies will have reaped a handsome profit from this source. Government Borrowing Nearly a month ago, the Minister of Finance (Mr J. T. Watts) “hoped to be ready in two or three weeks” to announce the Government’s loan programme for the year. No announcement l|as yet been made, though there has naturally been some speculation on the amount and conditions of the first loan, and whether the Government will make one or more approaches to the market. Probably the first decision to be made by the Government concerns the 3 per cent. 1955-58 loan, which will mature on February 15 next year. Of the £26.7m. outstanding in this loan by far the greater part is in the hands of the public, I and a conversion operation so early in the year would be very difficult. Accordingly, the interest payment due on August 15 this year may be the last paid to holders of this stock. To persuade the greater number of stockholders to renew their loan »o the Government in three months’ time, the Government would have to offer attractive terms, which would set the pace for this year’s cash issue. Market yields now closely approach those obtaining when Mr Watts announced the first (£lom.) last year. But the success of the conversion operation may depend on the offer of slightly better terms than were available last year. Christchurch Transactions Details of last weeks’ business on the Christchurch Stock Exchange, with figures for the week to April 18 in parenthesis, are as follows: Government stock. £2745 (£6220); local body and company debentures and stock, £l2OO (nil); banks, 825 (230); breweries. 605 (541); building societies. 61 (nil); frozen meat, 550 (nil); gas, 687 (400); insurance 166 (450); loan and agency, 2284; shipping. 325 (nil); timber, 700 (nil); woollens. 400 ( 700); miscellaneous, 18 (159); Australian mining, 1700 (nil); unlisted. 1553 (nil); total, 28,015 (12,008). Yields to maturity of Government stock traded last week in Christchurch were as follows: 4 per cent., 1954-58, £4 12s 7d per cent.; 3 per cent., 1960-62, £4 13s 7d per cent.; 3 per cent., 1960-63, £4 14s 4d per cent., £4 13s lOd per cent.; 3 per cent., 1962-64. £4 14s lid per cent. Weeks preference, the only 5 per cent. preference issue traded, changed hands at par. Union Steam Ship preference sold at the steady price of 22s 9d. Commercial Bank of Australia were fractionally below the pre-Easter &rice in sales at 14s lOd. Bank of ew South Wales also eased to sell at £3l ss, but recovered the loss in closing business at £3l 7s fid. N.Z. Breweries Rise to 48s New Zealand Breweries, after selling unaltered at 47s 6<l, changed hands at 48s. 48s. Westland Breweries eased slightly to sell at 455. Invincible Building, in first local business for some time, changed hands at 87s 6d. New Zealand Refrigerating, last sold in Christchurch at 395, jumped to sell at 41s. Southland Frozen Meat were also higher in a sale at 70s. C.F.M. were again firmer on quotation. Sales of other frozen meat shares were made elsewhere at higher prices. Christchurch Gas, fully paid, had first ex dividend business at 20s 9d, which is in line with last cum dividend business at 21s fid. The contributing shares sold at 15s 9d. South British Insurance again advanced strongly to sell at 90s. New Zealand Insurance sold at 88s 3d, which is higher than the last Christchurch price, but below the prices paid in more recent transactions elsewhere. Loan and Agency .Firm In the loan and agency section, Dalgetys were firmer on quotation. Goldsborough Mort moved up sharply to sell at 27s 9d. National Mortgage A made a modest gain to sell at 8s 3d. Wright, Stephenson (41s) anil New Zealand Farmers’ Co-operative A preference (15s) were steady. P. and O. stock, seldom traded in Christchurch, sold for 36s 6d. Kauri Timber were firmer in business at 225.

Tekau knitwear (25s 3d) were steady and Lane, Walker, Rudkin (365) reappeared on the sales list. Australian industrials and retailers were active.

Higher prices were paid for A.W.A. (8s Id), Wool worths (17s fid. 17s 8d and 17s 9d), Humes (41s). Burns Philp (51s, cum div.), and 1.C.1.A.N.Z. (41s). Colonial Sugar (£37 15s), Ampol (8s 3d and 8s 6d) and B.H.P. (38s 3d and 38s) finished the week at the same prices as were paid befor Easter.

Lower prices were accepted for Waltons (14s and 13s lid), E.Z. Industries (18s 7d and 18s). Australian Consolidated Industries (49s 6d) and the mining shares, Ampol Exploration (9s 3d), Oil Search (8s 3d), Mount Isa (31s) and Mount Lyell (225) reappeared on the sales list. Coles had first ex bonus business at 16s. A three for 10 par issue is to be made shortly. N.Z. Industrials, Retailers

Higher prices were paid for Beaths (33s 6d). McKenzies (25s fid), Milburn Lime (26s 6d), National Electric (£6 10s), Otago* Daily Times (51s), Whakatane Board Mills (20s), William Cable Holdings (24s fid) and Woolworths, New Zealand (21s, after business at the steady price of 20s 3d). Hauraki Whaling (ss), J. Watties Canneries (265, after a sale at 25s 9d) and Tip Top Ice (16s) finished the week at pre-Easter prices. Tasman (21s) was the only New Zealand industrial sold in Christchurch at a lower price. Consolidated Brick (12s 9d), Griffins (43s 6d) and, among the unlisted stocks, A. and T. Burt (555) and Christchurch Press (£l4) and South Otago Farmers’ Co-operative (3s 6d and 3s 7d) reappeared on the sales list.

STUDHOLME JUNCTION (From Our Own Reporter) WAIMATE, May 2. A special cattle sale at Studholme Junction yards attracted an entry of medium size, including a small number of calves. A sound inquiry resulted for adult cattle showing quality and condition: other sorts were difficult to dispose of. There was a good demand for well-bred calves. Values were:—

Breeding cows. Shorthorn and Aberdeen . Angus-Hereford cross, prime heavy, £l7 5s to £2O 10s; store condition. £lO 12s 6d to £l5; backward, down to £7; 18 months Shorthorn cross steers, £l5 10s; heifers. £lO ss; 18 months steers (ordinary colours), down to £6 17s 6d; Aberdeen Angus cross steer calves, goed, £ll 10s to £l3 10s; Aberdeen Angus cross heifer calves. food, £9 10s to £lO 10s; m.s. calves ordinary colour!), £7 10s.