THE MONEY MARKET

Ashburton Guardian, Volume 54, Issue 197, 2 June 1934, Page 7

THE MONEY MARKET

A PSYCHOLOGICAL FACTOR.

A FIRM TONE GENERALLY.

THE WEEK ON ’CHANGE

(Written for “Guardian” by

Investor.)

These must be wonderfully interesting days for the mail, or woman, really enthusiastic in the study of psychology. During the week 1 had a long conyersation with two friends, and having a fairly good memory 1 was able to contrast theiij present attitude and views with those of a year ago. Then, they were certain that the Dominion, if not the Empire and the world, faced a crisis that would shake. national foundations. They were pessimistic in their, outlook, but'unable to give, the facts, the general data, that would convince me. One of them said that he “somehow felt” that things were going from bad to worse. Some people have these “feelings.” Others have what they call a “hunch,” and I know a man who used to buy and sell shares because lie “had a. hunch” that they were going up, or down. His operations were by no means successful. They reminded me of a lady who used to back horses at the race meetings she attended because she liked the colours of the jockey. Personally, I do not risk money on colours, or hunches or feelings. However, just at present my two friends are' firmly convinced that the prospects are bright, but just as hazy in their explanations. It, apparently, is not a matter of sound reasoning ‘but of some belief strongly held and undoubtedly genuine;, and the strange thing is that they do not like being reminded of the views they previously expressed. There has been a suggestion, cussed in some papers, that the Government may issue a local loan in. order to fund accumulated deficits. It is unpleasant to have, to take that course, but really the, Dominion has been fortunate in this respect. We were able to carry along for some time with accumulated surpluses before the liabilities began to mount, and a loan for a medium term would certainly be cheaper than issues of Treasury bills. Whoever thought that he would see Australia issue an internal loan that would give the investor only £3 /s bci per cent. ? Business Steady. Business on ’Change has been steady. Government issues have had strong demand, and the 4 per cent, stock, 1955, has sold to £IOB 12s 6d, and fhe others carry premiums ranging to £6 10s per cent. The business is °in stock probably because holders of bonds do not come.into the market. Banks, taken generally, are firm. New South Wales sold at £32 5s cum div early in the week and at £32 10s ex div. later. Commercials had dealings at 16s 8d to 16s 6d, while Com. of Sydney went from £l7 7s 6d to £l7 10s and buyers stayed in at the higher, price. Unions were turned over at £9 i9s 6d and £lO 0s 6d, E.S. and A. s at £5 7s, Australasia £ll 1/s 6d and £ll 15s and National of Australasia (paid) at £l3 cum div. New Zealands firmed from 50s 6d to 51s 6d cum div. and have buyers at 52s Id, while the D mortgage shares are steady at 35s 3d. , , Insurances continue to be exceptionally firm. Nationals have changed hands at 20s 7d and 20s Sd, while New Zealands went from 63s 6d to 645, and South British had business at 80s 3d and 80s 6d. . , , r The increase m Goldsbrough Aloit s dividend, from 21 per cent, to b per cent., had been fully anticipated by the market and they had business from 32s 7d to 325. 9d, with later buyers at 32s lOd New Zealand Guarantee sold at 4s 6d and 4s 7d and National Alorttrage A at 59s 9d cum div. ° fii shipping there has been some activity in Northerns with sales from 7s 5d to 7s 9d for the 14s 6d paid and at Is and Is 6d for the conts. Evidently close students saw the possibility of the reduction of capital improving the prospects of the company. Coals and Breweries. Coal shares have been more active. Grey Valleys sold at 11s 6d and 11s 4*d, Westports at 17s and 17s 1/d and Stockton oi:ds. from 2s 4d to 2s 6d. Kaiapoi Woollens also havo had steady demand. The ords. (17s paid) sold from 9s 4d to 10s and the 7s paid from 3s 2d to 3s 6d. . New Zealand Breweries cum uiv aic well above last week’s level bales were from 43s 9d to 44s Bd, with buyers at 44s 3d, against 42s 4d last ween, Staples touched 30s, and Tunaras (/s 6d paid) were turned over at ,s aml 7s 3d, buyers staying m at the higliei Canterbury Meats were released at £lO 5s and'£lo 2s 6d, and Gears at 28s 6d. New Zealand Refrigerating (paid) jumped to 19s 6d, with Hu the buyers, and the partly-paid went from 8s 7d to 8s lOd. Southlands are firm at 66s 6d. . , , Colomal Sugars had a sale and buy. ers at £65 ss, and British Tobaccos sold at 37s 5d and 37s Gd Dunlop Rubbers had business at 18s /d and 18s 6d, Wilson Cements at 29s New Zealand Newspapers at 30s 3d and Ne Zealand Paper Alills at 29s 9d and 29s ■6d. Dominion Fertilisers cum div. a,te active at 17s 5d to 1/s /d, and A. j. . Fertilisers sold at 20s. Mining Still Active.

The mining section is still the most active. Alexander (13s 6d paid) have been more active with sales from 14s 6d to 16s 3d. Blackwnters sold at Jos and 345, and Brian Borns from Is od to Is Bd. Mataki realised 2s 2d and 2s 21d, Gleuroy 9d and 8 2 d, Okaiito 8s 3d and 8s 5d and Waitalm touched 5s with later business at 4s lUd. Mahakipawa went down to bd, but recovered to 7 2 d and Bd. Bell-Kilgour moved from 4d to skl and Bell Hoopers sold at 86. Goldfields Dredging went from 9?.d to 10J-d and 100, and King Solomon had dealings from 3s lOd to 4s and 3s Ud. Nokomai are steady at 2s 8d and 2s al, while Shippers hardened to Is ljd. Macreiyhenua sold at B|d and 9d, Nevis Electric at 41d to 5d and Central Shotover at 8« and 9d. Waihis are steady at 31s, and Grand Junction at 4s lOd.