THE MONEY MARKET.

Ashburton Guardian, Volume XLVI, Issue 10531, 24 October 1925, Page 6

THE MONEY MARKET.

SHADOW OF THE ELECTIONS. STOCKS AND LOAN THE WEEK ON 'CHANGE. (By '-'lnvestor.") (Written for the " Guardian.") The general tone cf the share market has been strong and healthy during the week, but save in the case =of certain highly speculative shares has been the tailing off in the volume of business that is usually to he noted in the last weeks of an election campaign. So much may depend ■upon the' character of the future gov•ernment of the country that it is only ■natural for investors to pause when such questions are about to be settled, and to await the decision of the polls before making up their minds concerning the merits of various stocks and shares. To take only one aspect of politics, the attitude of various parties toward protective duties and tne development and encouragement of secondary industries differs, and industrial shares would almost certainly be improved in value by the return of a number of those Nationalist candidates who have answered the Industrial Association's questionnaire to the satisfaction of the Association. Government Stock Depressed. The Government stock market is still under the cloud of the impending local loan, though tax-free stock has slightly improved, both bonds and inscribed issues selling at £96 ss, as against sales at £96 the previous week. Five per cent, bonds maturing 1927 had a sale at £9B ss, showing no change, but inscribed stock maturing 1929 sold at £97, 30s below the last recorded transaction at the end of August. Quotations for 5£ per cent, stock remain unchanged at their new low level.

Bank Shares Very Steady. In the banking group the only movement of any note has been the further advance of Commercial to sales at 33s 9d and 345, showing an increase for the week of Is 3d. Since they were ex div. in August these shares have advanced by 3s 3d. The rapid growth of this bank's reserve fund from nothing in 1921 to £832,570 this year is an attractive feature of this investment. Australasia are unchanged with business at £l3 18s 6d; National of Australia (£5 paid) have had further business at £8 lis, and New Zealand have been steady with small sales at 56s 9d. A salo of Royal (20s paid) at 36s 6d shows no change in value. Union, which have been selling lately at from £l4 14s 6d to £l4 15s 6d, sold this week at £l4 15s. Business has been slack in insurance shares, but values have been well maintained. South British have had business at 50s 3d, a rise of 3d, and sellers of National have advanced their price to 775. Quotations are unchanged in the loan and agency group. National Mortgage had a sale during the week, the first for three months, at 775, showing an advance of 4s on the last reported transaction.

There has been a very dull market for shipping shares. P. and 0. Deferred changed hands at. £255, comparing with transactions two months ago at £270. The prolonged shipping strike is having a depressing effect on all the British shipping companies' shares.

There has been no change in the value of meat preserving shares. Gear Meat have sold at 40s, and Refrig. contributing at 8s 6d. Activity in Brewery Shares. Interest in New Zealand Breweries continues, and the prospect of a postelection bonus issue of one new share for every two held is still a big factor. The shares, which rose to 50s 6d a fortnight ago and declined. to as low as 47s 6d last week, rose this week to as high as 49s 9d. The debentures have taken a new upward turn, reaching 245, an advance of lid on the week. Sales of Manning's at up to 36s 2d show an advance on the Week of Sd. The buying offer for Ward's, which last had* business at 675, has risen to 67s 9d, with no declared sellers. Wilson's Cement have sold at 3d up, realising 34s 9d, and Burns Philp, which could have been bought a month ago cum div. at 34s 6d, changed hands this week at 37s ex div. The Decline of Kawarau.

In mining shares interest has centred in Kawarau, which have fought a sort of rearguard action from 7s 6d down to 6s sd. Some heavy selling and some equally heavy buying is taking place, but so far the sellers seem to be having most effect on the market. Rubber and Oi! Active. Dominion Rubber, after rising from 50s to 54s 3d last week on the strength of the rise in raw rubber, declined to 53s 6d this week.' Taranaki Oil have been a great deal in traffic lately. Sales ranged from 20s lOd to 25s last week on a rising market, and this week, after opening at 2Gs and going to 27s 3d, declined to 235. London Bank Share Quotations. Bank share quotations cabled from London last Tuesday afford the following comparison with those cabled a fortnight earlier:

The latest London quotations compare as follow with those current in New Zealand at about the same date:-

Oct. 6. Oct. 20. £ s. d. £ s. d. Australasia 16 13 9 13 12 6 New South Wales 39 10 0 39 5 0 National of Australasia 8 0 0' 8 13 National of N.Z. 6 16 10i 6 15 0 New Zealand 2 15 0 2 16 6 Union 14 15 0 14,15- 0

London. N . Zealand £ s. d. £ s. d. Australasia ... 13 12 6 13 18 6 New South Wales 39 5 0 41 15 0 National of Australasia 8 1 3 8 11 0 New Zealand ... 2 16 6 2 16 9 Union 14 15 0 14 15 0