THE MONEY MARKET

Ashburton Guardian, Volume 48, Issue 80, 14 January 1928, Page 6

THE MONEY MARKET

FIRM, BUT NOT ANIMATED. BANKS SECTION MOST ACTIVE. THE WEEK ON 'CHANGE. (Written for the "Guardian," by "Investor.") There certainly has been no flourish of trumpets about the resumption of -business on the Stock Exchanges of the Dominion. But the market, though not animated, is fimi, and it will take a little time for business to return to normal. Naturally, after the longest break of the year, people are inclined! to wait to see how things are going, and an mv opinion, that is what they have (been"doing this week. The banking .section is the .most active, with a fairly .•substantial turn-over.

Thus far there have been no dealings art--. Government issues reported but quotations, taken all round, have hardened alittle during the week. It would not be surprising if this section continued quiet, at least until the close of the financial year. Buyers are offering a premium of 22/6 for 5£ per centissues, 1933 and of 25s for the 1936 issues, but sellers have not appeared. The Feature in Banks. In the banking group the most interesting features has been the demand for Commercials of Sydney and for New South Wales. Offers for the former advanced from £25 10s to £26 15s, with sales at- £25 10s and £26 15s, and sellers are holding for £27 ss. The explanation of the rise is a strong belief that there will be an increase of capital, and it has been the practice of this 1 bank to make its new issues at par. Of course, a dividend 1 is due this month and some Australian papers state that shareholders are hoping for an increased rate. The present dividend is 10 per cent., so that the return on the prices mentioned would be under 5 per cent. New South Wales have changed hands in Christchurch at £46 2s 6d, and at £45 15s in Auckland. Early in September last they were sold at £43 7s 6d, and when business closed in Australia before Christmas £45 10s was the current price. The return at the price paid would be in the neighbourhood of 5 per cent., and there are people who contend that, here too, there will be an increase of capital. They argue that the last isslue was for the absorption of the Western, Australian Bank, and that the expansion of the business will necessitate further capital. It appears to be a rather long shot. There have been several sales of National of Australasias, the £lO paid at £l7 Is and £l7 Is 6d, and the £5 paid at £8 9s 6d. In these cases the return would be between 5| and 6 per cent, on the present dividend basis. Unions cum div., have had dealings at £l4 12s, and Australasias at £l4 14s 6d, while Commercials have changed hands' at 29s 6d, and 295, the latter being paid for the new issue.

Bank of New Zealand shares have accounted for no small proportion of the sales recorded. Dealings commenced at 595, but the price has since touched 59s 4id, with buyers at 59s 3d. Nationals also have some support with sales at from £6 14s to £6 15s 9d, although they have been offered since at £6 15s Insurance Issues. Auckland has been the only Exchange to show any interest in insurance issues. For Nationals 15s 6d has been the ruling price, while 40s 9d has been paid on more than one occasion for New Zealands. There are buyers at this figure, which represents a rise of Is for the week. Practically no business has been passing in the brewery section. Staples were turned over in Wellington at 40s, but they have been available since at 39s 6d, with no declared buyer above 38s 6d. New Zealands, cum div. have eased during the week, buyers now offering only 42s as against 43s 6d on Monday. In the miscellaneous section there has been some demand for Loan and Agencies. In Christchurch, Dalgety's, after the sale of two parcels at £l3 3s had business at £l3 3s 6d, with -further buyers. The return on the present dividend basis would be over 6 per cent., and the investment looks very attractive. The company will have larger capital at its disposal this year, and that should prove decidedly beneficial. Wellington reported a sale of National Mortgages at 725. Goldsbrough Morts are fractionally easier. There have been dealings at from 47s to 47s 3d in Christchurch, and one sale at 46s 9d in the north. Sellers at time of writing are asking 47s Id, with buyers only twopenqe away. Burns Philp have had a sale and buyers at 395, but British Tobaccos, after sales at 39s 9d have had sellers at 39s 6d. Huddart Parkers have firmed, with transactions at 48s 6d and 4Ss 9d, and buyers now offering 49s 3d. Meat Company shares have not been prominent. N Z Refrigeratings (10s pd) have had sales at 8s 4d and 8s 7d„ while 16s 9d was paid for the fully paid issue.

The Mining Section. J Mount Lyellg have hardened in the mining section, and after a sale at 27s buyers offered 27s 3d. I notice that some financial papers have mentioned shares as worthy of the notice or buyers, the extensive business operations of the company and the marked improvement in the price of copper being'the reasons advanced. Alter a lonfr break Dunedin has reported sales of Kawaraue at 6d, and there are buyers at one penny below that price. The mining group has been quiet, but sales of Ohinemuris in Auckland at 8s ana 7s Od indicate that the proposition is favourably regarded in some quarters.