Local Stocks Show Erratic Tendency

Otago Daily Times, Issue 26631, 29 November 1947, Page 3

Local Stocks Show Erratic Tendency

AUSTRALIAN ISSUES STRONG By Gregory A good business was transacted on the Dunedin Stock Exchange for the week which ended yesterday, and except for the last day of the period, which was quiet, trading was fairly evenly spread. Brokers had a busy time inteiwiewing country clients in town for the'-show and with wool cheques -in hand or in the offing the main query was, “ What’s good to buy? ” 1 For the most part share prices were inclined to be erratic with no specific trend discernible. Meat export shares were a trifle weaker and New Zealand Breweries were singled out as likely to be affected by any spread of the West Coast boycott and were fractionally easier. Woohvorths (New Zealand) reversed their earlier trend, buyers displacing sellers at the 30s mark, to conform to the hardening tendency recently displayed by the Sydney parent, and Dalgety and Company shares appreciated the dividend increase and bonus with advanced buying offers. National Electrical an annual distribution of 10 per cent, which is equivalent to the payment a year ago, but is now described as dividend instead of part bonus as heretofore. P. and O. produced a net profit of £830,887, compared with £751,250 earned in 1946, but dividend, including bonus, was maintained at last year’s rate of 12 per cent.

The Australian market opened the week in sober tone, but by Wednesday buyers had broadened their discrimination to embrace a wide variety of metal and industrial stocks. New heights were reached in numerous mining stocks, North and Souths being marked up almost to their cum dividend prices—and they were no mean dividends. Broken Hill Proprietary remained steady at 5Gs and A.C.I. held fairly courageously to their new height of 64s 6d with only minor concessions. Mount Morgans reflected constant buying strength and firmed almost daily in penny and threepenny moves 'to finish the week both here and in Australia at 12s, a clear os above their wartime level. The market puts a premium on 1948 prospects which should usher in a new dividend era with a new issue sweetener to further justify current premium. Felt and Textiles of Australia made their record price for the year and this in spite of the fact that their February high figure included Rights to a new issue. Like an industrial army, Felt and Textiles have been engaged for the past two years on an orthodox manoeuvre commonly referred to as mopping-up, and as each new enterprise is brought under their sphere of influence the junior, as well as the parent, gains new stature byChe, mutual sharing of trade processes and opportunities. Woohvorths, Ltd., steadily advanced to close the week at 25s 2d, a clear shilling advance on the month. The change in Australian prices during November is apparent from the table:—

Chas. Begg and Co. rights ceased to exist as such yesterday, and when the amount of application money and premium is paid in full on Monday they will have assumed the name, style and stature of ordinary shares. Under a normal rule of Stock Exchange procedure, devised for the protection of buyers, official quotation for the rights ceased a w-eek ago yesterday, but remnants continued to be reported for a day or two and following buyers vainly raising their bids, a dying spurt was made on Thursday and Friday when a few hundred changed from Canterbury to local ownership in vestibule transactions. It is of interest to record that this parcel was traded at a figure almost exactly midway between the highest and lowest sales recorded in the vigorous five weeks of their market sojourn, but the significance of that fact lies in the prompt reversal of their price trend as soon as selling pressure was relaxed. The shares of the company bid fair to become a market leader, and the new proportions of the share register will have real compensation for the, company in swelling the ranks of potential customers and trade ambassadors.

£ s. a. £ s. d. Felt and Textiles Nov. 1. To-day. of Australia 3 0 0 3 5 u Eritish Tobacco 2 10 6 2 11 9 Mount Morgan Nortli Broken 0 10 7 0 11 9 Hill .. ,4 2 0 cum 4 0 9 ex Morts Dock .. Broken Hill 1 6 •9 1 8 6 Pty 2 12 9 2 16 *0 Hume Pipe 1 5 0 1 8 0 Woohvorths, Ltd. x 4 2 1 5 1 Zinc Corp. 7 6 0 8 15 0