Overseas Stocks May Now Be Sold

Press, Volume CVI, Issue 31097, 28 June 1966, Page 21

Overseas Stocks May Now Be Sold

(New Zealand Press Association) Brokers were told yesterday that quotation of overseas stocks could be resumed, but only'in terms of the recent Budget: no sales in New Zealand currency.

This means that any transactions made must be in overseas currency and limits sales to those already holding overseas stocks. They can sell their stocks to others with overseas stocks and buy more overseas stocks, but cash from the sales can come back to New Zealand only through the Reserve Bank. All shares in which the nominal value is expressed by the company in overseas currency fall within the restrictions.

It does not matter if the shares are on a New Zealand register. All banks, National Mortgage and Dalgety and New Zealand Loan are in the same category as Australian or English stocks. This move means that the stock exchanges are doing what the Minister of Finance (Mr Lake) announced in the Budget, our commercial staff writes. Suggestions that the Budget clause restricting the sale of overseas stocks was ambiguous have been proved wrong. Mr Lake meant exactly what he said. His move has blocked sales of shares to

circumvent overseas exchange regulations. Suspension of trading in overseas stocks was an order from the New Zealand Stock Exchange Association. The latest announcement means the association’s ban in trading on overseas stocks has been lifted. Trading was suspended until the Budget clause was more clearly defined. On the Christchurch Stock Exchange yesterday part of a trading board was set. aside for quoting overseas stocks in overseas currency.