THE MONEY MARKET

Ashburton Guardian, Volume 48, Issue 140, 24 March 1928, Page 6

THE MONEY MARKET

A ST JADING TiZN'OZMGY.

IH NO HEAVY VO-IiME OF BUSINESS .. THE WEEK ON ’CHANGE. AYritten for the M Guardian ” by IxvestouA

i It it lias not been a weak of heavy business there certainly ha* not been Jacking distinct interest. With one or two notable exceptions prices show a tendency to steady, and that is not to be enuered at, when the -advance! recorded since the commencement of business this year is considered': Prices, taken all through, are on a high level, mid that, of course, is regarded by the sold stagers as a good selling market. The following table will show how the market Ins moved. One column is that - or buying quotations early in the year and tlie other the latest available.

i course, Jiave been taken to I /■show the advance, but generally there I -Ms been a decided strengthening of! xhe share market. I During the week there has been t much more activity in tbe Government 1 group. Tax-free issues have changed i hands at from £97 10s to £97 _ Ids, -while there lias been steady business in per cent, inscribeds, 1936, at JEIOO 10s. For oj per cent, inscribeds, 1933, £IOO 5s was paid and 6% per cent, inscribeds, 1940, changed hands , at £9B 10s. Tl;e trend of prices is t-o ease a little, and at time of writing, •

buyers’ offers are from 2s 6d to 5s below those of last Saturday. The Banking Group. In tlio banking group Christchurch lia3 reported more business than all the other centres collectively. Dealings have centred largely on Commercials of Sydney and it.ri. and A.’s.. The iormer were ottered 1 by sellers at £26 2s 6d last Saturday: Dealings this week, opened at £26 5s and the price touched £26 4s that day. JNext day £26 5s was paid, followed by sales/ at £26 7s 6d, iclx further buyers at the last-men- j tioned ngure and no declared sellers below £vd 10s. Altogether about i’4 parcels' changed' hands, representing a substantial turnover. E.S. and A.’s

tv ere dealt in early in the week at £8 2o hut strong demand forced tiie price up to £8 4s. No reason has been given lor these movements, but it snornd lie noted that both banks absorbed rival institutions last year, and both pursue a progressive policy, it has been said that the issues made for the amalgamations should not be viewed ill the same light as issues which bring in absolutely new capital, and as_ bo til banks 1 have reported increased business a further issue may be expected. New South Wales have advanced steadily, with sales ranging from £47 15s to £4B 5s and sellers Holding out for £4B 7s 6d. Here, again, there lias been a recent absorption, and the position is one of undoubted strength. Commercials have had steady attention at 27s 9d and 27s lOd, while there have been several sales of the prefs. all at £0 18s, with further buyers. At this price the return would, be £5 16s per cent., and holders have been given an opportunity oil a share basis of participating with ordinary shareholders in new issues of capital. Unions have eased to business at £l4 12s and £l4 11s, and the only sale of A.8.0.’s reported thus far at 33s 10d is a fraction below last week’s selling quotation. The Dominion banks have not been prominent-. New Zealands have been dealt in at 595, and Nationals, after the sale of two parcels at £6 18s, were inquired for at £6 18s' 6d. In the insurance group Nationals have been the most active, with majom of the sales at 15s 6d, which is the middle quotation at time of writing, one penny either way. New Zealanus have had sales at 41s and 41s 3d, and are available at the lower figure.. 1 here was a sale of Queensiands' at 61s and later buyers offered sixpence more, but sellers named- 60s. The brewery section has been neglected. The only sales so far have been one of New Zealand bonds at 22s 7d and one of shares at 435, but prices have hardened a little since.

The Miscellaneous Section. The strength of loan and agency issues has been a feature of the miscellaneous section. -Dalgety's have changed hands at £l4, and there are buyers at £l4 Is, as against £l3 17s 6d last week. For New 'Zealand Loan and Mercantile (ord. stk) buyers Have offered £99 15s, hut the cabled quotation from London of £lO2 10s had its effect, and sellers are asking £lO5. Goldsbvough Morts have been dealt in at 49s 3d without filling-the demand. There has been considerable activity in meat company shai'es, with N.Z. llefrigeratings in a prominent position. : .A number of parcels of partly paids have been sold at 7s 6d and 7s 7d, with buyers staying in at the higher figure, while ' the fully paids have had attention at 15s 6d for an odd lot and los Bd, again with buyers at the higher price. In Wellington 37s 3d has l>een paid on two occasions for Gear Meats.. Every day this week Cliristclrurch has reported sales of Howard Smiths at .prices ranging from 27s 9d to 28s. This company is concerned in the new big steel and iron company which is to be establis/hed in the Commonwealth. Dealings in Wilson's Cements continue to he firm at 38s and 39s 9d has been the ruling price, cum. div., for British Tobaccos. In the mining group, Mt. Lyells has had a; sale and buyers at 30s, while Waibis have been turned over at 10s and 9s lOd. Ohinemnris have hardened with sales from 6s 9d to 7s 4d while the offer for Electrilytic Zincs has advanced from 32s to 32s 3d without inducing a seller to'come below 32s Ha.

■ £ s. d. £ s. d. A.B.C. 1 12 11 1 13 9 . • Com. of Sydney 25 10 0 26 7 6 E.S.and A. 7 11 0 8 4 0 Nat. of A os. 17 0 0 17 19 0; N.S.W. 45 15 0 48 2 6 Dai^ety’s 13 2 6 14 1 0 Alt. Lyeli 1 7 0 1 10 0