THE MONEY MARKET

Ashburton Guardian, Volume 53, Issue 64, 24 December 1932, Page 7

THE MONEY MARKET

CLOSING BUSINESS OF YEAR. A TRYING PERIOD RECORDED. THE WEEK ON ’CHANGE. (Written for the “Guardian” by Investor.) The Stock Exchanges have closed and another year’s operations will doubtless be carefully reviewed by both broker and investor. It has keen one of the most trying years recorded for a long time. At one period it did look as though the clouds of depression were passing, but towards the end the international sphere was sorely disturbed and the effect has been noted in most markets. The Australian markets, however, have a confident tone, and it is significant that some of the leading Australian industrials are firmer to-day, judging by the quotations, than they were a year ago. This is good news, for just as no nation could isolate itself from the adverse effects of bad times, so no nation could monopolise the benefits of any sound recovery. The following quotations give an indication of price movements. In the case of Government stocks I have had to take the buying quotes because there were so few of the other sort. For all other issues the prices given are those of sellers. Dec. 24, Dec. 24, 1932. 1931. . £ s. d. £ s. d. Gov. Stocks —

In the Government section* there has been steady recovery since the Prime Minister’s statement regarding interest rates forced prices down a few weeks ago. Tax-frees have changed hands this week up to £93 7s 6d, and the per cent, issues to £99 ss. These prices include accrued interest so- that, in reality, they are still well below par. The returns from these investments are still relatively high. During the week I looked at the latest stock and share list issued by the Sydney Stock Exchange, and of the Government consolidated issues there was not one that, with or without redemption, would yield the investor 4 per cent. I have long been of the opinion that money was not worth wliat it was commanding in New Zealand. The process of re-adjustment will be painful, but it rvill be better for the country in the long run to have the rates on a more reasonable level.

The banking section is the barometer for many people, and it can be said that the market closed firmer than was the case last week. For instance New Zealands, after touching 40s, sold up to 41s, with buyers at 40s 9d against 40s 3d. Prices paid for New South Wales went from £26 to £26 15s, and Unions changed hands at £7 to £7 Is 6d. Dealings have been light, but it was good to see the firmer trend at the close. Business in the insurance section lias been confined to New Zealand?: at 41s and 40s 6d, but other quotations show little change. Buyers of Dalgetys moved up from £6 5s to £6 ICs, but sellers held firmly for £7 ss. Goldsbrougli Moris, were sold at 21s Id, and N.Z. and River Plates at 20s 3d. Shipping, woollens and coals have been quite out of the picture, and the limited business in meat company issues has been of partly paid N.Z. Refrigeratings at 3s 2d,to 3s. Two sales of N.Z. Breweries, one at 24s 8d and the other at 24s lid,, were all that the brewery section could show for the week, and the miscellaneous section had no outstanding ieature. British Tobaccos cum div. after sales at 27s 6d and 27s 7d, had buyers at 28s 3d, and 38s was paid for Australian Glass.

In the mining section Mt. Lyclls cum div. brought 18s fid and ex div. from 18s fid to 18s 3d. Big Rivers have been fairly active with sales from llid to Is 2}d. King Solomons cum div. had business at 2s 4d and 2s fid, and Nokomais eased from 6s Id to 5s 9d. Other sales included Consolidateds cum div. at 9s, Gillespie’s Beach at 3£d prem. Golden Sands 2s 3d, Golden Dawn 5s and 4s lOd, Golden Points 3£d and 3d, Maliakipawas 3d, Okaritos 8s 2d to 8s 7d, Waihis ISs lOd and 19s, Grand Junction 3s 4d and 3s 3d, and Waitahus 7d prem. The mining section has provided its full share of the business passing this year, and the coming few months should not be without interest. For a while markets will be out of sight and out of mind, and a. change is a good thing. No one claims that we are out of the wood yet, hut the year has seen the community stand firm, with no sign of panic, and the qualities that make for stability are by no means exhausted. If we do hot know what lies ahead the best thing is to greet the unknown with a cheer. Meantime as, in the season of goodwill, men exchange greetings and good wishes, T should like to do the same. Lang may your him reek.

4J p.c. inscr. 1938 93 2 C. 96 0 0 4i p.c, bonds, 1939 93 5$ p.c. bonds 99 5 0 96 5 0 0 0 100 0 0 p.c. inscr. 1937 99 2 6 LOO 5 0 Banks— Com. Aus. ... 0 13 10 0 16 0 Com. Aus, (pref.) 7 5 0 6 11 6 E.S. and A. ... 4 ' 2 0 4 12 6 Nat. Aus. (£5) ... 5 8 6 o 6 6 N.S.W 26 10 0 28 17 6 N.Z. 2 1 2 2 5 6 Union 7 9 0 7 18 6 Others— Dalgetys 7 0 0 i 19. 0 Colds, Mort. ... 1 1 8 1 3 3 N.Z. Refrig. (10/-) 0 3 •j 0 4 11 N.Z. Breweries ... 1 4 11 1 9 0 Brit. Tobacco ... 1 8 § 1 6 6