Review Of Week’s Stock Exchange Transactions

Press, Volume CV, Issue 30978, 7 February 1966, Page 17

Review Of Week’s Stock Exchange Transactions

Ranging more widely last week, trading on New Zealand stock exchanges again held a moderately firm tone and reported turn-over on the Christchurch Stock Exchange was higher than the week before. Over-all the market showed almost twice as many rises as falls, but much of the strength came from advances by key stocks in the New Zealand section, with some help from second-rankers.

Oddly enough, the market for overseas issues was not so firm as the week before and rises just barely headed falls, although turnover of Australian industrials and retailers in Christchurch was nearly twice as high.

This did not reflect the more buoyant tone that ruled on Australian exchanges last week when prices reached their best level for the year. There was a climb of more than three points on the Sydney all-ordinaries index and one point by Melbourne leaders. Turn-over In Christchurch reported turn over of shares, notes and rights was 101,675, against 74.650 the week before.

This was an average daily turn-over of 20,335, compared with 14,930 the week before. While advances in the overseas list were mainly narrow, some New Zealand issues made worthwhile gains. New Zealand Refrigerating continued climbing with a 9d rise to 15s 9d—the highest point since the middle of November.

Southland Frozen Meat rose Is 3d more to close the week at 235. This is 2s higher than last year’s closing price. Key insurance stocks also gained strength with New Zealand up lOd more to 225, 3d and South British up Is Id more to 31s 3d for the first time since November 12. Wool Gains Among woollens and textiles, Alliance, ex dividend, Feltex, New Zealand and Australia, McKendrick. Mosgiel and Tekau all gained. Tekau’s 20s shares are making a slow recovery after slumping badly last year. Last sales at par were in August and the price had dropped to 13s 6d by the end of the year. Gradual improvement this year has lifted the price to 14s 6d. Alex Harvey added another Is last week to make a rise of 2s 9d so far this year, taking the price to 34s 9d for the first time since early November.

Autocrat, alone among TV stocks, gained 9d to Ils 9d, but Pye Electronics lost most of the previous week’s gain to sell 7d down at 13S 2d.

Neill Cropper rosp Is 9d to 26s 3d and the notes Is to 24s 3d. Norvic rights added 9d to 10s 3d and New Zealand Newspapers continued

regaining ground with a Is 6d rise to 66s 3d. Rothmans Rothmans reacted to news of a big increase in turn-over and recommended interim dividend of 10 per cent with a Is 6d rise to 245. Rothmans’ directors said they expected to be able to recommend a final 10 per cent dividend to make 20 per cent for the year. Last year’s dividend was 20 per cent, but since then capital has been raised £256,564 by a one-for-three bonus issue.

Wilon Cement old shares, at 22s 6d, and Wilson Cement new, at 225, made gains of 6d and Is. The unlisted R. and W. Hellaby continued to recover and sold for more than 50s for the first time since the company announced on November 29 that profit had dropped 25 per cent last year.

Enzlon lost Is to 2s 6d and it seems this stock could fall further yet. The fall came after an earlier slight recovery had seemed to check the decline that set in late in November. M. Holdings On news last week that Motor Holdings is to pay a 7J per cent interim dividend the shares lifted to 14s 4d, but lost ground on Friday to close at 13s lOd—lOd up on the week before.

Motor Holdings 5s shares, placed on the market late last year at a 10s premium, had an unhappy start on the official list.

Opening sales in mid-De-cember immediately marked the shares down to 14s lOd on the Auckland home market.

By the end of the first week the price was down to 14s 6d and at the close of the year the shares were Is below placement price.

There was a minor recovery at the start of this year, but by the end of January the price was down to 13s. Early last week the price started improving and after the interim dividend announcement the shares jumped 7d in Auckland.

Forecast Interim 71 per cent is what directors forecast in the prospectus for the placement of the 900,000 shares in Motor Holdings. They also said they expected to pay a final 10 per cent in August to make 17J per cent for the year.

Since listing, Motor Holdings, holding company for the New Zealand Volkswagen group of companies, has expanded into the automotive field, and retailing and servicing of tractors and earthmoving equipment. In its prospectus the company said it had acquired the franchise for the Komatsu range of equipment in tractors and earthmovers. Such diversification will probably be well worthwhile for Motor Holdings as the market for automobiles is extremely sensitive to economic pressures. Lane Walker

Lane Walker last week announced it had increased its consolidated sales in the halfyear to December 19 last by about £200,000 on sales for the same six months of the year before. Prospects for the year seem good, as directors said forward bookings for the current six months were also showing a satisfactory increase on last year.

Shareholders in Lane Walker seem happy with what they have as turn-over of the shares is less brisk than it was at one time.

At the current price of 15s 9d, the shares return 3.97 per cent on the possible total dividend for the year of 12| per cent. Something had gone wrong in New Zealand Refrigerating’s deal with Meat Packers and some court action was to arise, according to market rumour late last year. But a strict security clamp kept any details from becoming public—that is if there was any foundation for the rumours.

No information came from the company and the courts invoked a 19th century ruling to prevent access to court paper.

However, in its annual accounts last week, New Zealand Refrigerating said the value of the investment in Meat Packers would be determined by litigation.