THE MONEY MARKET

Ashburton Guardian, Volume 49, Issue 199, 8 June 1929, Page 6

THE MONEY MARKET

SLIGHT EASING IN BANKS. SMALL FLUCTUATION IN PRICES. THE WEEK ON 'CHANGE. (Written for the "Guardian" by "Investor.") The banking group is generally taken as a reliable guide of the trend of the market, and this week there have been signs of a slight easing. Price fluctuations have been small, for the most part fractional, so that it would not be advisable to draw any definite conclusions. This might just be one of those periods when investors take an opportunity to study the position generally. The volume of business has not been as large as «pf late, all centres being quieter than usual, and there have been few isolated sales. The review of the national finances made by the Prime Minister during the week has been most carefully studied. It was frank, and, in view of the approaching session, very timely. Ike country ivill await With interest the proposals which Sir Joseph Ward may make \\ ith regard to taxation'. _ In the Government section this week there have been only one or two sales. The 5-J per cent, bonds, 1938, changed hands at £lOl 10s, and the corresponding issue of inscribeds at £lOl ss. Tax-free inscribeds were sold at £S9 17e 6d, the first time for several weeks that they have been available below par.

Ti.2 Banking Section. There have, been no outstanding developments in the banking group. Compared with prices at the close of business last week, buyers' offers at time of writing are a little lower in six instances and sellers' quotations in five. In the north, A.B.C.'s were turned over at 375, but have since been offered at 36s lid. Similarly, Commercials, after touching 30s 4d, were offered by sellers at 30s 3d. The £5 paid issue of National of Australasias had a sale and sellers at £9 12s 6d, and the. £lO paids have eased a little. Unions, however,.are firm with business at from £ls 15s to £ls 16s, and the higher price was paid for a parcel of shares on the Victorian register. Sales of New South Wales have been effected at £sl 7s 6d, and parcels on the New South Wales register were sold in Auckland at £sl 5s and £sl. Other sales have included one of Australasias at £l4 15s and an odd panel of Commercials of Sydney at £27 7s 6d.

To time of. writing all business in New Zeal amis has been at 62s 6d, while the D mortgage shares advanced to turnover at 295.

Insurances and Agencies.

In the insurance group New Zealands have been steady at 47s 3d, and dealings in South British have been at 66s to 65s 6d. In Christclmrch, five parcels of Nationals changed hands at 16s 3d, at which figure sellers offered ■more. Last Saturdav they asked 16s sd.

The loan and agency group has had fair business. Dalgetys were sold at £ls 5s and £ls 4s 6d, and Goldsbrough Morts at from 49s 9d to 50s. The declaration of the dividend and bonus by the Australian company did not affect the market. Evidently they had been fully anticipated, for the shares changed bands cum div. at 49s lOd. In Dunedin, Wright, Stephenson brds. had a sale at 25s 3d and the prefs. at 18s.

Brewery Section Prominent. While activity in the brewery section has not been as marked as last week it has been somewhat prominent because of the lack of business in other sections. New Zealands are very firm indeed. This week dealings opened at 70s and the price, under steady pressure, has touched 72s 6d, at which figure buyers were prepared to take more. The demand is attributed by some to the expectation that there will be "other benefits!' disclosed at the annual meeting. In Christchurch alone over 1000 shares have changed hands, and the total for the four centres must be substantial. Staples have had business at ?9s and 4Ss 6d, but other issues have not attracted attention.

In the miscellaneous group British Tobaccos hav r e been as prominent as any. Prices have been from 49s 10£d to 49s 6d, buyers staying in at the lower price. Westport Coals have had sales at 32s 6d and 33s 6d, and in Auckland they have had business in Taupiris at 2os Gd and Pukemiros at C2s 3d. Meat company issues have not been in great demand. A parcel of Canterburys changed hands at £8 15s, and the partly paid New land Refrigeratings at 7s 3d. There have been three sales of Taranaki Oils .at from 4s 9d to 5s Id.

The Mining Division. The easing tendency noted elsewhere lias been apparent to a certain extent in the mining group. That might be expected with regard to copper producing companies for the latest papers from London state that the American group controlling the sale of that metal has broken up, with the result that the price has eased. This week Mount L veils have been dealt in, cum div., at from 42s 9d to 43s 3d, and have since been offered at J3s 2d. In Christchiireh the Electrolytic Zinc ords. were sold at but other centres reported business' at 36s 4d to 36s 6d. For the prefs. 37s and 37s Id have been paid. Dealings in Waihis have been at from 12s 8d to 12s lOd. The annual report came to hand this week, and discloses a strong position. Government securities held total £298,000 and other securities £86,000. In addition there were investments "in sundry mining propositions" £12,660, cash at bankers £55,000 and bullion in transit £30,600. There apparently will be no difficulty in financing the development of the extensive tin concession the company is interested in in Siam. Mahakipawas have •dropped to sales from 9d to with more available at the lower price. Dunedin has had a sale of Kildares at 4s and of Big Beach at 5s 6d, while in Christchurch Is 3d was paid for Winding Creeks.