COMMERCIAL Decimal Change Now 12 Months Away (By Our Commercial Staff)

Press, Volume CVI, Issue 31108, 11 July 1966, Page 9

COMMERCIAL Decimal Change Now 12 Months Away (By Our Commercial Staff)

Decimal currency change-over day is now only 12 months away—or rather a year less one day—and the count-down for the new currency has already started.

There could be some confusion when the change comes in the next 12 months, but it is unlikely that there will be any upset on New Zealand’s stock exchanges.

When Australia changed to decimal currency in February this year the stock exchanges, along with the banks, made the smoothest change to dollars and cents.

cent rise in profit in full accounts released mid-week.

Tekau made a profit recovery, Cyclone, Airwork N.Z. and T. J. Edmonds reported lower earnings, and KearnsOatina announced a loss.

Australian exchanges wiped their trading boards clean of pounds, shillings and pence on the Wednesday evening before the change; on Monday prices were chalked in cents. Business was brisk on the first day of dollars and cents, but much of this was because of the back-log of orders that accumulated during the twoday closure. Most listed stocks converted easily to the new currency and they were quoted on the exchange in cents only. Some shares were split into dollar units, while others were left at 50 cents.

Perhaps the most heartening news of the week was the announcement by the Minister of Finance, Mr Lake, when he wound up the Budget debate on Tuesday. He said he hoped a scheme with suitable safeguards could be devised to enable New Zealand’s stock market to be restored on a limited basis.

Talks were still going on between the Government and stock exchange officials and some progress had been made, he said.

There would seem to be a good case for restoring trading to the same level as reported turn-over on the exchanges before the Budget. Meantime, trading on the New Zealand exchanges seems to be lacking in enthusiasm. Although the market undertone is very steady, and on the week rises just headed falls, buyers seem to be sitting back and sellers are hanging on.

New Zealand companies will have to decide their approach to the par value of their shares if they are not already in 10s units. Just as the Australian exchanges took quickly to cents, companies began publishing their accounts in dollars.

Commercial pages in the Australian newspapers never