THE WEEK REVIEWED.

Auckland Star, Volume LXI, Issue 33, 8 February 1930, Page 4

THE WEEK REVIEWED.

FINAL BUOYANT NOTE. AUSTRALIAN RECOVERY. BUSINESS GENERALLY BRISK. A very buoyant note was in evidence on the Stock Exchange at the close of this week, and there was a tendency for sellers ■to withdraw from the market in sympathy j .with the improved tone. The feature of the week was the partial 3 recovery of Australian stock generally, and .banks in particular. This was regarded as an indication that finance in s the Commonwealth has turned the corner. . It also reflects a return oE confidence on ;the part of the investing public. No doubt this is attributable to the feeling t that the end of the coal strike is not far 3 off, and also to the announcement that 1 the bank rate in London has been reduced 3 'to 4Vz per cent. Another, contributing 3 factor is the belief in Australia that it 1 will be possible to raise the £10,000,000 5 loan at 6 per cent, locally. New South Wales, it is understood, will also be able 1 to float a loan in New York. The trend 1 of the market can be gauged from the 7 prices- of the following shares (listed on j L ' the New Zealand Stock Exchange) on both 3 the Melbourne and Sydney 'Changes:— ~ SYDNEY. Feb. 3 Feb. 6. 1 £ s. cl. £ s. d. - Com. Bank Aus. 12 3 13 9 5 Bank N.S.W 37 17 C 38 17 6 Union Bank 10 17 0 11 O () Bri:' Australasia 11 14 10 11 5 0 r IVisbrough, Mort 1 10 6 1 11 10 > Urltish Tobacco ... 2 0 3 2 3 0 , Mount Lycll .... 1 14 0 1 15 0 MELBOURNE. ' Jan, 31 ' Feb. 7. £ s. (1. £ s. cl. Com. Bank Aus. 12 3 13 0 . National Aus. (pd.) 14 18 0 JJ} 0 0 ' Union of Aus. . . 10 17 (5 11 2 0 ' Goldsbrougli, Mort 110 0 112 6 ! Dalgetys 11 0 0 11 18 O Better Stocks Improve. > The direct result of all these negotia- > tions is the improvement •of price in the > better class of New Zealand stock. Appended is a tabulation showing the , general increase in a week of several of the Tiore sought after stocks in the Dominion:— Last \yeek. This week. £ s. d. £ s. d. Bank of New Zeal'd 214 6 216 0 N.Z. Insurance .... — 2 I'J (Sales during week £2 1/0) S. British Insurance ... —' 2 IS 0 (.Sales during week £2 IS/0) Auckland Gas 14 3 13 6 Devonport Ferry ..120 120 N.Z. Breweries ... — 4 4 0 One or two of these show a drop, but in the main, the improvement for the week has .been steady. Moanataiaris have been more in demand lately than they have been for some time past. This has been in response to one or two encouraging reports from the Moanataiari management. The three issues are always bid for, and the fully pai dstock has fetched the price of 2/3. There have been a fair num- ' ber of the 2/4 contributing sold in the ' last three weeks; and the sales before then —with a long period of quiet intervening—were in the vicinity of fid. Auckland Gas have also been inquired after, and on Tuesday a parcel of 1500 was sold between three parties. For those who can afford to wait a year or tw.o, Banks are a good investment, particularly when they are, .bought at_<a ; low figure. From the point of dividendsreceived the Commercial Bank returns s about £6 6/ to the investor. It is considered that Bank stocks are bound to - recover their normal price once economic conditions become (normal., That they are ; Jikely to become so, more or less steadily from now on, has been explained in the opening paragraph, so the investor in Banks has been fairly safe in spending ; -liis money. More than this, Banks are a I 'fairly reliable financial barometer. In the wake of the recovery of. Banks, other stocks are bound also to improve. Bearing out the statement of the improved amount of business transacted, the : turnover 'has been very satisfactory. With bidding reasonably keen, it may be i expected to be maintained. • BUSINESS IN THE SOUTH. (By Telegraph.—Own Correspondent.) vh, . CHRISTCHURCII, this day. • The "Christchurch Times" reports that the week has seen a remarkable change come over the markets, and the spirit of optimism has had a marked effect on prices. The level reached at the close of business yesterday was well above that of last week. Dealings have covered fair range, with banks prominent, but in most sections operations have been concentrated. Shipping, woollens and coals are the least active sections. _ , The business reported this week was 13,917' shares, compared with 8404 last week. When transactions are analysed the results are as follows, the totals for last week being; given in parentheses, and Commercial Bank of Australia rights being included in the bank shares: — : Banks, 2579 (2504); insurance, 500 (nil); loan and agency, 1475 (900); breweries, 1975 (675); coal, 100 (100); meat, 1400 !(300); Mining, 4300 (2600); ail miscellaneous, 1588 (1325). . In addition, Government issues to the value of £4200 have changed hands, ! against none last week, and company : debentures for £100 have .been sold, against £1000 a week ago.