THE WEEK REVIEWED.

Auckland Star, Volume LX, Issue 224, 21 September 1929, Page 4

THE WEEK REVIEWED.

A QUIET PERIOD. BANKS A LITTLE WEAKER. TREND OF THE MARKET., Judged by recorded sales, the weel closing last night must have been th< quietest experienced by Auckland brokers for a couple of months. Monday was an exceptionally dull day, only one sale being recorded after three calls, but the rest of the week business was e\ enly distributed. . . As usual, a large proportion ot tiie business has been hi the banking section, but it lias been very noticeable that holders have had to make concessions, and the close of the week has found a lower level of prices ruling. Australian of Commerce are down ]/6. National of New Zealand 1/. National of Australasia 2/6, New South Wales 7/6. Union 2/6 and New Zealand 7d. One can only conclude that the stringency in the London market, ' together with the adverse influence of the political disturbance in Australia, is having a depressing effect. In this connection it is worth while noting the course of values in bank shares over a period. The following 'table shows the ruling market price at this" date in recent years:—

From the foregoing it will be seen that a year ago every share listed showed .an advance, some very substantial ones, hut during the last 12 months the upward trend has been checked. This has been particularly the ease since January of this i year, and values are now lower in several | instances than they were a year since. Thsre is as much money to be made o the rise and fall of shares at the presen - time as there has been in the nast. bu consideration of the above table show that caution in making an investment i ' always necessary. At the same time i should be emphasised that the investo in these bank shares who intends to leav his money to earn him interest over term of years need have no concern ove market fluctuations. His dividends _ar regular and assured. Now that price are lower several of the issues are return ing approximately 5 per cent or more. Fnsurancss. Insurances have had a dull time. Onl; one sale has been recorded, and at tiiw of writing buyers have dropped out ii the case of A.P.A., National, Soutl British and Queensland. It looks a though holders who want to do busines; will have to reduce their limits. Ever for the highest grade of insurance stocl 3% per cent plus prospects is a loti return. Gilt-edged Lines. The gilt-edged lines, consisting of Gov eminent stocks; municipal and other de bentures, are still, held as firmly as ever and prices show no sign' of weakening Three sales of inscribed stock, and one oi War Loan took place at current ratea but at time of writing there _ aft buyers for every Government issue with few offering. Two lots of Harboui Board loans are available., at above par, and the new issue of Hikurangi -coal debentures, paying 10 per cent interest, have sellers at £105. Breweries Jump Again. The featuro of the week has been the sale at high prices of New Zealand Breweries' scrip. The latest npward move commenced at the close of last week and reached what appears to have been the peak on Tuesday last, when the £1 shares sold in Wellington at £4 11/3. This shows a rise of 5/ in the week. _ The debentures followed suit, the price jumping from £1/8/6 to £1 10/10 in the same period. Just what has caused this sudden spurt is hard to estimate, as the position remains as it was when the shareholders adopted the directors' recommendations in July last. How these shares and debentures have fluctuated can be seen from the followng table showing the market price on the dates, named: — Se it 20. Sept.' 20. Feb. 1. Sept. 20. 1027. 1928. 1929. 1929. £ s. d. £ s. a. £ s. d. £ s. d. 6 012 6 2 17 9 4 11 0 Debentures — „ „ 1391431661 10 9 Shareholders received 10 per cent dividend until last year, when the rate was increased to 15 per cent, whilst debenture holders have been receiving 10 per cent. Under the new proposals shareholders will receive on April 1 next a bonus share for every two now held, whilst debenture 1 holders are given the right to convert their debentures into shares on the basis of one share for each two debentures. Assuming that the company's present dividend rate of 15 per cent is unaltered, a present purchaser of shares at £4 10/ will receive from April 1 5 per cent' on his outlay, and a purchaser of debentures at £1 10/ would receive a similar return. Coals Still Popular. It is a long time since any particular section outside the gilt-edged has received such favourable attention from the investing public as has been bestowed upon coals of late. The Waikato carbonisation scheme and the publication of a Government report showing how New Zealand coal is being used in increasing quantities, not only on the railways but also by gas companies, capped by the wonderful Pukemiro balance-sheet, have all been bullish factoi's. Pukemiro have reached a new leval with sales at- £3 l<3/6, and Grey Valleys have sold at up to £1 9/5. Practically all the other coal lines listed have shared ill the, keen demand that exists. An investor putting his money into New Zealand coal companies at the beginning of thfe year could have reaped i handsome turnover at the present time, , for most of the lines have shown a solid idvance. Australian Concerns Ease. There has not been a great deal of ictivity in the miscellaneous and financial section. A feature has been an easing_ in he demand for several of the Australian lines. Thus Electro Zincs, which had advanced to new high levels, evidently with insufficient justification, are now quite neglected. Colonial Sugar is only i wanted at a comparatively low price for that scrip, whilst Goldsbrough, Mort is definitely weak. J Wilsons Cement, amongst local iiulus- j trials seems to have reached peak level, and prices have eased during the week. J Mining. Ihe leading issues iu the mining sec- r lion..namely, Mount Lyell, Ohinemuri, S Waihi and brand Junction, have been in consistent demand. Ohinemuri dropped C ]!" 0,1 the previous week, but are now 1 firmer with buyers at 9/9. Mount L. ell and , Wnilu both maintained late value* but : { Grand Junction showed a drop of sd. I Changkat Tin Mine. llefcrence was recently made to the 1 listing on the local Exchange of another tin mine company, Changkat Tin Dredging Ltd. From further particulars now available it would appear that this is a com- ' parutively new venture, which has made an excellent commencement. ]t was formed three years ago, with a paid capital of £130,000 in £1 shares, and production was commenced early in March,

year totalled £43.346. From tiiis a dividend of 1/ per share was paid, absorbing £6500. £8500 was written off developriient account, depreciation £2854, and dredge alterations £1090, leaving to the credit of profit and loss £24,401. The directors decided to pay a second dividend of 1/ per share on January 30 and a third on April 30. Apparently it is their intention to pay 1/ per share quarterly, or 20 per cent per annum. According to latest results, namely, for the month of August, the company's prospects seem exceptionally bright. The yield of tin ore averaged 21b per cubic yard, which compares with an average for the field of ,6Clb. It is reported that the directors have acquired another area of similar country, and intend to offer fresh shares to an equivalent of the company's present capital to develop the additional area.

. FINANCE, C0MME1 THE WEEK REVIEWED A QUIET PERIOD. BANKS A LITTLE WEAKER. TREND OF THE MARKET. Judged by recorded sales, the weel closing last night must have been the quietest experienced by Auckland brokers for a couple of months. Monday was an exceptionally dull day, only one sale being recorded after three calls, but the rest of the week business was e\ enly distributed. . . As usual, a large proportion ot tiie business has been in the banking section, but it lias been very noticeable that holders have had to make concessions, and the close of the week has found a lower level of prices ruling. Australian of Commerce are down 1/6. National of New Zealand 1/. National of Australasia 2/6, New South Wales 7/6. Union 2/6 and New Zealand 7d. One can only conclude that the stringency in the London market, together with the adverse influence of the political disturbance in Australia, is having a depressing effect. In this connection it is worth while noting the course of values in bank shares over a period. The following 'table shows the ruling market price at this" date in recent years:— 1927. 1928. 1929. £ s. d. £ s. d. £ s. d. Aust. of Com. 1 IS 0 1 1!? 10 1 14 10 Adelaide ... 8 14 0 9 15 0 10 2 B Australasia 14 15 0 15 0 0 14 11 0 Com. of A list. 1S0110 5110 0 English and Scottish. 7808 15 089(1 Nat. oE X.Z. 0 17 6 7 4 0 0 17 0 Nat. of A list. 17- 2 0 20 0 0 19 32 C> N.S. Wales 48 10 0 51 5 0 51 15 0 New Zealand 2 IS 3 1 3 3 2 9 Union . . 14 17 6 15 5 0 15 0 6