THE MONEY MARKET

Ashburton Guardian, Volume 48, Issue 86, 21 January 1928, Page 6

THE MONEY MARKET

A VERY FIRM TONE. FAIRLY WIDE; RANGE BUSINESS, THE WEEK ON 'CHANGE. (Written for the "Guardian," ' by "Investor.") Business recorded this, week has covered a fairly wide range, and the market has a very firm tone. While the bankinf section probably" has accounted for the greater part of the turn-over, there has been a demand for some industrials and other issues,- and the Government section is inactive solely because of, the scarcity of sellers. i Dealings in tax-free issues during the week have been at £96 17s 6d and>£97, and buyers at £96 15s are 2s 6d up on last week's offers for 1938 and 19<J9 bonds and 5s up on the offers for the tax-free inscribes. The position was made plain bv the Christchureli. quotations on Thursday, when there were nine buying offers and only one selling quotation. From the north have come reports of sales of 5 i per cent bonds, 1935, at £lOl 7s 6d and of 5| per cent. 1941 at £99. but with sellers,, quite willing to hold it is no wonder that sales have been few.

The Banking Section

*ln the banking section one or two developments have been noted. -Last Saturday buyers offered £8 . 14s tor Adelaides. At the time of writing they are in the market at £8 18s 6d, and there axe no declared sellers below £9 5s The return at the price offered, on the present dividend basis, would be over si"per cent. Last year, it will be remembered, there were amalgamation) rumours regarding the Adelaide, but they were promptly denied. Then, about the'middle of the year, there was an issue of 50,000 £5 shares at a premium of £2, bringing the capital up to £1,000,000. New South Wales have been in* strong demand, and buyers at £46 17s 6d have advanced 15s during the week. However, sellers have asked an additional 20s in the same time. There have been sales at frcm £46 5s to £46 12s 6d. Unions, cum div. have j had attention at £l4 13s and £l4 12s, 6d while E'.S. and A.'s have been turned over at £7 12s 6d and £7 13s with more available at the higher figure. Commercials have been quiet, the onlv transaction- reported having been at 29s 3d. Possible the market is waiting to see what the effect of the coming issue will be. - Three centres have reported sales or National of New Zealands, at... prices from £6 15s to £6 16s, with buyers remaining in at the higher figure. The turn-over'in New Zealands has' not equalled last week's by any means but it has,been fairlv substantial. Auckland did report a sale at' 59s 6d but the majority of the transactions have been at 59s 3d, at which price. there are sellers. A parcel of I> snares (15s paid) changed hands at 21s 9d in the north. Insurance and-Miscellaneous.

Changes in quotations in the insurance group have been very < s New Zealands have been sold at 41s and 41s 3d, and buvers are offering 41s 5d cum div. - South British .has had sales at.' from 56s lOd to 57s 3d anS with ouyers at 57s there is a margin of sixpence between quotations. bor Standards the offer of 61s 6d has Been repeated but sellers are holding for 63s 6d. Nothing has happened to' create■interest in the brewery section. New. Zealand Breweries were sold at 41s bci early in the week, and the debs, at 22s 7d, while a parcel of Staples was sold at 39s 6d, but it would be difficult to get these prices at time of writing. The improvement noted" in jUaigetys has continued, and the sales reported have been at either £l3 7s 6d or £I«J 106, with further buyers at the higher figure As I have from time to time mentioned, the return from these shares, on the present dividend basis of 17 per cent., would be over 6. percent There are sellers at £l3 15s and at that price the yield would be £6 ~s 7d New Zealand and River Plates ex div. have been dealt in at 27s 6d ana 27s lOd, and National Mortgages at 725, with buyers at 71s 9d. There most steady business in loan and agencies, however, has been in Goldsbrough Morts, Christchurch alone reporting the sale of seven parcels all at 475, and Wellington three at the same hgure. The return here on the present dividend basis of 15 per cent.- would be about £6 6s 6d. Wilson's Cements fnr?e been prominent, with business at 38s and 37s 7d in Christchurch and at 38s and 37s 10d in Auckland. British Tobaccos .have hardened a little, sales, ranging from 39s 3d to 40s, with buyers at 39s 9d as against 39s od a week ago. Dealings in P. and O. (def). rights have

been reported at £27 and £25, and 49s | 3d was paid for a parcel of Huddart j Parkers in Dunedin. New Zealand Refrigeratinga cum div. have eased a little, but the only sale reported was one of fully paid at 18s. Sellers have since named 17s lid, with no buyers above 17s 7d. There have been several deals in gas shares, mostly in Auckland where the price has receded slightly. Though no sales have been reported, Christchurch* Gas have also eased. The Mining Section. In the mining section the only item of importance has been the advance in Mount Lyells. Last week buyers offered 27s 6d and sellers asked 27s 9d. To-day there are buyers at 28s 6d, with sellers at"'2Bs sd. The dealings during the week have been at 28e, and the return would be over 8 per cent. Waihis have been turned over at lis 2d and lis 3d.