MONEY MARKET

Ashburton Guardian, Volume 55, Issue 279, 7 September 1935, Page 7

MONEY MARKET

INFLUENCE OF THE SESSION.

DEMAND FOR. CILT-EDCEDS.

THE WEEK ON ’CHANGE

(.Written for the “Guardian” by “Investor”).

Apart from the presentation of the Budget, there is no outstanding financial measure to be considered by'Parliament in the present session. The Government, by the establishment ol the Reserve Bank and the Mortgage Corporation, has already completed the major financial tasks which it had in view, and before any other large reorganisation is undertaken, time-must he allowed for the new machinery to be fun in and to prove its worth to the Dominion. It is, by the way, generally thought that the issue of bonds in the new corporation is already over-subscribed, though nothing official has been made known, and the applications lists are not to be closed before September ft). Ho main interest now attaches to prospects lor taxation relief, and there appears a confident feeling that the general taxpayer will receive some consideration, that a further salary restoration may be made to civil servants, and that tho Budget generally will provide an encouraging outlook. ith the / election now approaching rapidly, stock exchange business is likely to he alfected "by the political prospects, and tho session will be watched with great interest by those who Jollow the tiond of the markets. Stability the Main Prop.

Stability in politics is a mam prop on which the commercial world leans, political uncertainty means hesitancy on the investment markets; and a London correspondent writes in tins connection: ‘Politics and the Htock Exchange mix about as eomlortablj, as do oil and water. There is desultory talk of what may happen in Italy and Abyssinia . . . the Dictator seems to be'bent on bringing matters to a head, and, so long as the uncertainty lasts, so long will it tend .to curb speculative enterprise m the markets. New Zealand markets are not as sensitive in this respect as those overseas, but in Australia there has already been some sign of nervous selling, consols fell rather sharply, and this week the international situation is reflected in an easing in the investment market and moderate falls over several issues. . , Locally there is still a very .stead) demand for gilt-edged securities, with no indication of casing. The short dated stock and bonds have had keen buyers from 2s 6d to 5s above £102; and while the 3’ per cent issues have been neglected in at-trial dealings, sellers throughout have been reticent. 1 he 1955 stock is very firm, with sales and buyers at £ll2 10s. Banking Section Brighter..

The banking section has been definitely brighter, and prices, with one or two exceptions, have made a good recovery. New Zealands have slipped a few pence; but Commercials have made a substantial rise to 16s lOd; and Commercial of Sydney had sale and buyers at £lß—an advance of 2s Od in ten days. A good volume of business lias passed, seven classes of shares changing hands. Again little interest has been shown in insurances, New Zealands losing ground to 64s 6d, and further unsupported sellers 3d lower. South British also lack local buyers. Judging by the prices for pastoral shares the rise in the wool markets had been fairly accurately anticipated, for there have been no sensational movements. Dalgety’s gained 2s 6d and held the advance; but Goldsbrough Molts, alter rising to 33s 9cl and 33s 7d, closed with sellers down to 335, the same level as at the opening of the week. Interest has been shown in N.Z. Loan and Mercantile ord. stock, and two sales have been made totalling £2OO, both at £'3o. The meat section has been erratic, with fair business in N.Z. Relrig. up to 20s lOd for the paids and 9s lid for the partly paids. Quotations varied a lot, but closed steadier. Kaiapoi Woollens have had attention while cum dividend, a lew small parcels being dealt pi, late buyers and sellers coining close together. The brewery section owes most ot its interest to’the New Zealands, which have risen from 51s to 52s 4d and 52s 3d. Tooths opened with a quick rise to 55s 9d, alter having sellers at 54s ;kl; but they were I owe* agfcjn at the close. Buyers have crept up Is for the 10s Timaru scrip. The Miscellaneous Section. Continued activity in Broken Hill Pty. has been a feature of the miscellaneous section, the shares going quickly to 68s 4d and then to 69s 6d, finishing much easier at 66s lid. Colonial Sugar returned to the sales list at £.12 10s: and Dunlops started to crc-pr> up a little, reaching sale at 14s 7d, buyers later at 14s 9d —a dividend announcement is due. Otherwise the section lias been quiet, G. J. Coles improving to 67s 6d, and Whitcombe and Tombs doing small business at 70s 6d. The market has-been watching N.Z. Farmers’ Co-op stock and shares closely as the balance-sheet date approached, the Ist and A prefs. being in firm request. Australian Glass have been stronger at 84s; and Electro Zinc cum div. rose to 29s Pel for the ords. and 36s 6d for the prefs. Values in t'ne section as a whole have been steady, but business has been restrict-] ed to relatively few issues. Mining Inis' been extraordinarily dull, only half a dozen issues being dealt in. Mahakipawa remained very uncertain round 2d. and Goldfields Dredging showed no improvement. Kales included Golden Sands at 2s 6(1 a,nd 2s 7d, Maori Gully at Is 2d, Argo Gold at Is 7d. Is Bd, and Is 7id ; and Mount Morgan at 38s 6d. Mount Lvell. alter selling at 19s 9d, had Inter sellers at 19s 6d.