MONEY MARKET

Ashburton Guardian, Volume 55, Issue 231, 13 July 1935, Page 7

MONEY MARKET

DOMINION CONVERSION LOAN. BANKING IN JUNE QUARTER. THE WEEK ON ’CHANGE. (Written for the “Guardian” by Investor.) Details of the conversion loan in London are not yet available, be 4 the Minister of Finance has stated that the issue has been a success, and « dealings on the London Stock l.x change opened at a small premium it is evident that the terms were fairly close to dealers’ estimates of the position of the money market. Comment has been made b.yl London journals on the fact that the Dominion was repaying a part of the maturing issues, for that is a development always welcomed m the City. The course may involve a domestic loan. Some people seem t be under the impression that this action on the part of the Government is something new. The public memoiy is short, and possibly most people have forgotten that the late Sir Joseph Ward, acting with promptness when he last went into office, cleared oft the balance, about £19,000,000, of the levy large maturities this country had to arrange in 1929. He managed to get sufficient to pay off a substantial pait of the final section of the loan and so enabled the Dominion to avoid the very costly short-term renewals that alone were possible in London for some time. The Commonwealth Government had to pay more than G per cent, for temporary accommodation, and there can be no doubt that among the many services Sir Joseph rendered the Dominion the prompt dealing with this large loan just before the market broke badly was of immense value. The banking averages for the Juno quarter are of interest, as they indicate a, better demand for money. Advances have grown, and with the approaching opening of another export season, and the usual demand for accommodation to finance summer and Christmas trade imports the banks should be able to put much of then idle funds to profitable use. With this seasonal demand, the possible flotation of a bond issue by the Mortgage Corporation, and the more reino e chance of an internal Government loan the demand on the market would e very much above the average.

Firming of Prices. It has been an interesting week on ’Change, with dealings well spread, and prices firming under the influence of the Australian markets. With very few exceptions Australian banks and leading industrials are at higher levels than those obtaining at the commencement of the week. . In the Government section most oi the business has been in the 4 per cent stock 1940 at £lO4 15s. The 1946 sold to £IOB 10s, the 1949 to £lO9 ss, and the 1955 to £lll 15s. The 3| per cent 1938-43 sold at £l()5 10s, and the 193852 to £IOB 10s. These issues seem to be in steady demand in the North Island. . The banks have led the way t lus week. Commercials cum div. went from lfis 7d to 16s lid and 16s lOd, and the prefs. sold to £9 18s fid. Australasias were steady at £ll, and Comnieicial of Sydney had business and buyers at £l7 10s. E.S. and A’s touched £5 2s fid, and New South Wales went from £3i 5s to £3l 12s fid. Unions were turned over at £8 18s fid and £9. National of Australasia paid sold at £l2 12s, and the cont. issue after business at £6 5s had business at £6 5s fid. National of N.Z. cum div. are firm at 70s, while New Zealands moved up sharply from 51s 3d to 525, and buyers wanted more at the highest price. The D mortgage shares realised 32s fid and 335. Reserves had dealings at £6 9s and £6 9s 3d.

The insurance section has not been active. Nationals sold at 21s and 20s lid, New Zealands at 68s, and South British' at 98s 3d. Loan and Agency Shares. Loan and agency shares are firm. Dalgetys brought £8 5s in Dunedin, and sales of Goldsbrough Morts have been at 29s 5d and 29s fid. N.Z. Guarantees sold from 5s 6d to 5s lid and have buyers at 5s 9d. Dealings in shipping have been confined to Huddart Parkers at 8s 6d and the prefs. at 28s, but there has been steady inquiry. Coal shares have not had much attention. Westports sold at 21s 9d and 21s lOd in the south. Dealings in woollens have been limited to Kaiapoi ords. at los lOd and the prefs. at 18s fid, and the market is firm, in anticipation of the balance-sheet that should be issued within a few weeks.

Breweries have been well to the fore. New Zealands went from 54s 3d to 54s Id cum div. and then returned to 54s 4d. Staples jumped from 34s 9d to 35s 6d and buyers at 35s 5d are Is Id above.their offer a week ago. Timarus (7s 6d paid) had an active day in Christchurch during the week, 1500 shares changing hands at 9s 3d to 9s. Tooths are firmer with business from 54s Id to 54s 6d. New Zealand Refrig, issues recovered lost ground. The paids sold from 19s 5d to 19s 9d and the partly paid went from 9s 2d to 9s lid with further buyers at the highest price. The Miscellaneous Section. In the miscellaneous section Australian issues have been prominent. Anthony Hordern went from 19s 8d to 20s 3d, Iron and Steel (pref.) from 23s 7d to 23s lid, and Broken Hill Pty. from 59s to 59s 6d. The movement is upward. Dunlop Rubbers, though active, have not strengthened, sales being from 16s 4d to 16s 2d. N.Z. Paper Mills sold at 34s 6d and 34s 9d, Wilson Cement at 39s 4d, and Deaths at 31s and 31s 3d with buyers 2s up for the week at 31s 3d. Cons. Brick cased from 11s 3d to 10s 9d. Woolworths (N.Z.) are strong with business at £l2 10s and buyers at £l2 Bs. The profs, sold at 435.

The mining section has not been very active. Waihis firmed with sales at 37s and 37. s 2d and buyers Is up for the week at 375. Blackwater had a sale at 30s, Big River 2s 3kl to 2s 2d, King Solomon 3s Bd, 4s and 3s lOd, Lawson’s Flat 4d and 44 d, Mahakipawa 6)d, Mount Morgan to 37s 6d, cum div. and at 37s Id ex div. Okarito sold at 6s, Skippers 2-Jd, Worksop 2s 4d to 2s 7d, Kildare 3s, Goldfields Dredging 3kl, and Waipapa Beach Is 4)d.