AUCKLAND SHAREMARKET.

Auckland Star, Volume LX, Issue 200, 24 August 1929, Page 4

AUCKLAND SHAREMARKET.

THE WEEK REVIEWED.

NOT QUITE SO BUSY,

BANKS IN KEEN DEMAND.

MOST VALUES MAINTAINED.

Not nearly so many sales were recorded on the local Exchange for the week ended Friday as was the case for the previous two weeks, although the volume of turnover was probably satisfactory to brokers.

Undoubtedly the chief feature of the week was the marked activity in Bank shares, which was noticeable throughout, and accounted for at least a-quarter of the total business. This is not altogether surprising because, as was pointed out last week, prices in this section have on the whole eased a little, and investors a better margin to work on. However, tne scrip most fancied was of lines that have not eased, namely, Bank of New South Wales and Bank of New Zealand. Both these are higher priced than they were a year ago, and Bank of New Zealand has been steadily firming in recent weeks.

Insurances Neglected. While Banks have been getting the business, Insurances have been strangely neglected. Although the usual buying bids were reiterated daily, there was a disinclination to spring the extra margin necessary to iinalise business, and only two sales in this section were recorded, both being of New Zealand Insurance. It is significant of the strength of insurance stockholders that it was the buyers ot New Zealand, not the sellers, who made the concessions leading to business. The highest buyer a week ago named £2 7/3, whereas the wales were made respectively at £2 7/8 and £2 8/.

"Gilt-Edges." The real gilt-edge section, Government and municipal issues, is as firm as ever, with comparatively few sellers. In two of the three sales of Government stock recorded the purchaser had to go to a higher level than has be«n ruling for some time. £101 12/6 was twice paid for oVz per cent war loan. This is the highest that has been given locally this year. A year ago the same scrip was selling at £101.

Farmer Financiers. Amongst companies dealing direct with the farming community there have not been many actual sales. There has been some interest in the preference scrip of North Auckland Farmers, whose directors have just issued a favourable report, and at the same" time announced their intention to seek authority to issue more ordinary shares. Should this move prove successful the position of preferential shareholders would be automatically improved. The shares of another Auckland concern, the Farmers' Co-op. Auctioneering Co., which have been in steady demand for some time, showed an advance of 5/ in the week. Buyers are now offering £3 17/6 for the £5 shares, but holders have retired to £4 5/. A year ago this scrip could have been bought at £2 16/, and on June 19 last it was on offer at £3 12/6.

Devonport Ferries Down. A feature of the shipping section has been the i continued easing of Devouport Ferry shares, which have sold down to £1 1/3. These have paid a dividend of Tk per cent with unfailing regularity for many years, and the £1 shares have usually commanded a substantial premium. At September 1 last year the market price was £1 4/6. According to the statements of accounts in recent years the earnings have been barely sufficient, after making the usual deductions, to pay the dividend, and investors have apparently come to the conclusion that the. scrip must be considered as carrying an ordinary trading risk. The company certainly increased its liabilities very substantially when it took over the old Takapuua company's assets and set up the North Shore Transport Co. to convey passengers from its ferries to Takapuna and Milford. At latest balancing, after outside liabilities had been provided for, there remained £1 3/2 worth of assets for every £1 of shareholders' capital.

Coal and Gas. The recent sharp advance of coal shares has been arrested, but there is no weakness on the section as a whole. Pukemiro, after reaching a new high level on Saturday last with a sale at £3 15/, lias slowed down, and holders are now offering to sell at .that figure. Waipae, which sold at par (15/) on July 30, and later at 14/, are now on offer at the lower figure. Taupiris, on the other hand, have moved up further, with sales at £1 9/10 and £1 9/9. This shows 2/6 rise on the pr ~e a year ago.. The scrip is evidently to the taste of investors at the present time, as buyers are offering 6/ for the rights to the new issue recently announced by the directors.

Gas shares have been very steady at £1 4/1, and a sale at £1 4/2 was made yesterday, closing the week on a firm basis.

Miscellaneous. Reference, was made last week to the strong preference shown for leading Australian concerns, amongst these being mentioned Australian Glase. At that time these shares were on offer at £2 16/. On Thursday there was a buyer at £2 19/, but the price, failed to tempt holders, who now ask £3 1/. This company has a paid capital of over £1,100,000, and paid 10 per cent dividend regularly until this year, when the rate was increased to 12%,- following on a particularly successful year's operations. Visible reserves total £304,156 Net surplus of assets over liabilities, after allowing for preference share capital, is £1 6/6 per £1 ordinary share.

The big zinc manufacturing concern, Electrolytic Zinc, touched a new high mark early in the week at £2 0/3 for the preference issue. This proved to be the peak in the meantime, for, following upon a steady advance in recent weeks, buyers reduced their offers, and no further business has resulted.

Mount Lyell shares have been in strong demand throughout the week, starting with a sale at £2 3/9 and finishing up with one at £2 4/6, after a new high level had been, reached at £2 5/ on Thursday.

Investors are still optimistic concerning the future prospects at Ohinemuri, and, sales have been made up to 10/6, compared with 8/2 to 8/5 a few months back. Hopes are founded on the crushing. ■ ■ '■ . ' Farmers' Fertiliser have eased further, with sales down to £1 2/. There were rumours afloat concerning suggested policy measpres in connection with this company, which may have been responsible for the recent rise. There was no foundation for these reports, and the market now realises that the scrip must be considered on its merits as that of a sound and important trading concern with excellent possibilities, but all the risks attachable to most trading enterprises.