THE WEEK REVIEWED.

Auckland Star, Volume LXI, Issue 21, 25 January 1930, Page 4

THE WEEK REVIEWED.

■! J: SALES ONLY MODERATE. £--'- r- ices KEEPnro low; | X; . BANKS STILL UNSTEADY.

r The only good thing to say of last . ■ week's business on the local Stock- Ex- } change is that turnover was rather better : than the previous week. All the same, it was far from satisfactory. Bidding on ■ : the whole lacked Tim,- and only for a few --special lines was there a steady demand The bulk of the sales made were due to weakness at the selling end, certainly not ■-■to over-eagerness on the part of buyers This disquieting state of affairs is by no means surprising, for the factors which chiefly affect stock markets have not improved* during the week. A further big drop in the price ofwool is bad enough "for New Zealanders whose farming is "faklv mixed: it is worse for Australians. . , S wouTnow appear that the in Commonwealth receipts from the sheeps■i: fleeceT as compared with the previous -■ ■> Son, estimated at £20,000,000, may be well above that figure. An intimation from London, underwriters that they will not <v further Australian loans until the £ew 1 South Wales coal strike has been settled, •, is a definite intimation to the world that industrial troubles are endangering the -financial position of the; Commonwealtn ' ' This is an unfortunate addition—almost ' -a-climax—to the increasing monetary.:.dil- : - ficultiesof our friends across the .Tasman. " ; It is poor consolation to add that but tor "i this latest happening the easier condi- .■:' tions of the money market at Home migiit 'have permitted them to successfully approach the London market for, temrtj>.porary relief; ■• ',' Weak Holders of Banks. Interest during the-.week has chiefly -• centred on bank shares. Holders have "been weak, and many' sales have been made as the result of further slight i concessions by sellers. Market L alterations i have not been great, but. any changes have been downward, and the market is ''fctill far from .settled. It is realised that - the serious slump in wool prices .will '"'affect'every financial concern in,the;Com- > monwealth and in New Zealand which toi deal with the 'farmer. : " f'f~" As in the past, Commercials have had "■' to bear the brunt of the "bears" attack, V," and from sales at (cum rights) the — ;shares dropped to one at £ 1 3/, ex "rights : yesterday. The rights to the new issue -"have also been "on tap" this week, selling —first at-2/6 and later -at 2/: When; the ' "last issue was made in 1929 the rights ; : were selling at 8/9. ( ~.'. New Zealands, too, have fleflnitely weak--1 I ened, and a sale at £2 16/6 is the lowest '. t 'recorded for .many.;;a., -year.-,'.., Nationals, jpf '-."New Zealand are also further down, with ' a'•■sale' at rf, £6 "8/61' At the close;'of the . Week bank shares showed no signs of -recovering, and there were far more sel•ilers- than' bxiy6rs' ! eVen j at 'the lower rates ■/■''povr- ruling. _/j _ •:_ "„'.'./.'■■'.' r'.'l Goldsbrough Moris Down. How serious the position has become for ] ;;'•, > many Australian -;securities .is shown _ini ; ,_the case of Goldsbrough Mort shares, which _"have-dropped.6/ in the week to(30/. 'This .big"pastoral .concern has a paid;capital of ;'". '.-£2,000;0p0. In recent years it has made "J#he handsome return to shareholders of • , (10 per cent dividend and 5 per cent ; r ibohus. -- This -necessitated a payment last ■•'■' financial year ; of; £300,000, and as the net . £338,609 there was quite thei last few ~i 'monthß_aVnew i 'issueiof •;400;0p0 r £l, shares ,fh"as. been successfully floated.- ■ The com- ;. !pany ? s yearr-closti on -March 31. 'A" year; ■■'••] .ago the "scrip was. priced at'; £2 -11/6, so : ."/that it has .dropped, over 40 percent: in ~ the meantime. Even should \ the com- *. .p'any withhold,thefcustomary bonus dur- , ing the coming year and- pay only a 10 per cent dividend, the return on present "outlay would, be 6 2-3 per cent.; ;~ A * Reserves at last balancing amounted to "1% millions sterling, so that the. company is well situated; to face; lean; times. • ~:■;:• .'».{•' r Southl British Easier. -"" - Business in the insurance section, has ,' been confined to South British, which sold early in the week at £3 0/6 and later / .;;• at £3- .-.;■ ;'■; :-'."• ■"','■ ,- : ', < .'•■■■■»■t.'"- Gilt-edges Neglected. .'..'%'; Gilt-edges have been almost completely ■ neglected since the Governmerit made its yf.offer of SWB over the counter. During »' 'the week ; .ending -last- night! not a dingle ' u pale, of, Government, Btockojt municipal 5 debentures was notified, and there was .'J only ':' one sale .'the-previous week;- ;• A -few J', tentative offers, well on the, lowj side, have i > been .made. Gas for Dividends. t During the week the directors of the '.Auckland ' Gas Company ; issued; their annual report embodying the satisfying that the usual 8 per cent I dividend is to ibe paid.; Twq : . other gas companies,: namely, Wellington and •Napier,; have also notified the usual 8 vper cent returns/to':, shareholders. .;.To }, .those who still cherish what is'now almost • -ah ; ancient superstition that electricity would completely wipe out the'gas comit is worth mentioning that not only the three companies just mentioned , but also, the Christchurch Gas Company, have paid not less than 8 per cent regu-' . larly, during ]: the last; seven years-—just ; aboUt. the -period when, according to the : pessimists, they were due to be oyer,whelmed., ; ,: ._ ;; _ . ,'.;'■ : : C-1: .'' .'■•■■ Moanataiarrs Flutter. After , being neglected for :'some tinie past, a demand Ci'et in. this week for shares in the Mpanataiari, Gold Mining : Company. A fair number of sales occurred at improved rates. The demand is due to the expectation of favourable develop; mentsat the mine. During the time the late Mr.' H. ,H; Adams was manager, stone-carryihgjgpldjwas,got in a win/e; .i ;but; work: had to be suspended on account the water'.met' with.; Since then a v'driye hasi been ."put ;ih which should now * ebe hearing the bottom of the winze. In ■■-:■'■, this drive a reef wag biitj the stone.show : ;'ing gold. Indications .'point to this reef "juncfcioning with the one at the bottom '. ~of the winze, arid should such prove to be ; the ca«e there is a chance of a good patch * ' beicg located.; This; is iri country where loomnzM were found years ago.