THE WEEK REVIEWED.

Auckland Star, Volume LXI, Issue 217, 13 September 1930, Page 4

THE WEEK REVIEWED.

BUSINESS ONLY FAIR. VALUES STILL UNSETTLED. BROKERS' DULL 'TIME. After an uncommonly quiet beginning business during the week ending last night brightened up considerably towards the close, and the final returns were about the same as for the previous period. That is not to say they were good, far from it. The Stock Exchange is passing through a very difficult period. The amount of money available for investment has been seriously curtailed by Government borrowing, added to which investors are naturally cautious about parting with their funds, while the markets continue unsettled. The net result of these factors is a volume of business probably not two-thirds of that transacted at this time last year. Split up amongst the 26 local firms the share of some must be very small indesd. The area of investment has been very small, and accurately reflects the caution of buyers, who refuse to touch anything in which the clement of riek is in any way pronounced. The banks and insurance sections accounted for about half of the total business. In the former the influence of Australian "bears" was again evident, and values, which had shown signs of stability, during the previous fortnight, slipped to lower levels. Taking completed sales and latest quotations as a basis, New South Wales slipped 42/6, Australians of Commerce 6d, Australasias 5/, Commercials V. English and Scottish 2/6, Nationals of Australasia 9/, Unions 6/. Local Banks Preferred. It was noticeable that the two Dominion banks were not affected by_ the latest reverse. New Zealands remaining steady with Nationals up 1/. New low levels were established in some cases. Commercials, sold at 18/6 locally, represent a value that would have seemed unbelievable even a few months back, yet Christchurch i-eorded a sale at 2,1 below that figure, shewing a return on outlay based upon later!; dividends of over 8% per cent. It should, however, bo emphasised in this connection that based on the latest accounts it is quite on the cards that Commercial may pay a lower rate for the current year. Nationals of Australasia were offered on Wednesday at £13 5/. with the highest buyer stopping at £13. At the middle figure of £13 2/G thus shows a return on out'ay of 7% per cent per annum. With Australians slumping. New Zealands received special attention, and there was a keen demand for the shares early in the week. From sales at £2 16/ they moved no to £2 l(>/9. but subsequently dropped back to £2 16/3. , Insurances Popular. There was again a keen demand for insurances, which investors quite rightly view as a perfectly "safe' , line, and one with future "prospects." New Zealands had a number of sales at £2 2/6, whilst South British moved up 3d. with sales at £2 18/, and more wanted at the same money. Nationals had a sale "1 cheaper at 13/10. A buyer came forward on Friday for Queensland Insurances, paying £2 5/. This old-establishe-l company has paid per cent divider*:l without a break since 1914. Next accurate will close at the end of this mouth, and it will be surprising if the rata should he, curtailed. Last year net profits totalled £102.500, _ which allowed, after payment of dividend. £40.000 to go to reserves. The total reserves then amounted to £691,42*. and of £1,733,000 worth of assets over 90 per cent were in liquid form. Pastorais Stil! Lower. Farmer financing companies were almost completely neglected. Goldsbrough Morts were asked for daily, but buyers had lowered their limits another 1/ to £1 1/9. and no business resulted. An odd parcel of Dalgety's shares changnd hands at the last call yesterday, the figure being £9 2/, a drop of 12/ in a fortnight. A year ago they were selling at £15 3/6. Breweries Slip Back. Breweries have had an unusally quiet spell. Only one sale was recorded locally, namely of New Zealands at £2 8/9. a shilling drop, but quotations for Staples and Tooth's have also registered lower valuations. Waihis Soaring. In the mining section Waihis have virtually had the field to themselves. There has been an insistent demand all the week for this scrip, with the result that values have been forced up from sales at 14/4 to one at 15/2. This is the highest price paid for these shares for a considerable period, and indicates the beliet of investors that another 1/ dividend will be available at the end of the year. From the monthly reports issued it would appear that the mining operations continue fairly satisfactory, certainly better than was anticipated eighteen months ago, when the directors forecasted a reduction in dividend which never eventuated. While Waihis have been soaring Mount Lyells have been in the doldrums, buyers seeking to obtain the scrip at a shade above par, and only failing by a few pence to get it. ~ • An interesting feature of the bidding has been an inquiry for different tin mining shares. There have been buyers tor Kampong Lamjut, Kuala Kampar and Kamrat. all operating in Malayan territory. It is generally believed that tin is as low as it will get, and that the companies which can produce and make a profit under existing conditions will have bright prospects when those with higher costing rates have been weeded out.

Government Stocks. There has been'.little activity in Government stocks. The demand for tax frees is very insistent, but offerings are rare and buyers hesitate to rise to £100 10/, the pri'ce usually demanded. One parcel changed hands at £100 5/. s%'s likewise appear to be firmly held, for none have been offered since last report. A fair selection of municipal and trading debentures is available, but investors are seeking something higher than the 5% per cent which is approximately the return available on outlay, basing the calculations upon redemption at maturity. Local Issues. In the miscellaneous section some of the Dominion issues have eased in accord with the prevailing trend. The difficulties confronting the film industry at present arereflected in Fullers and Hayward's scrip, which have been offered at 12/, without any response from buyers. A year ago they were worth £1. Following the failure of the proposed merger Robinson Ice Cream have sold 1/6 cheaper at £1 2/. Farmers' Fertiliser have eased a little further, and have been on offer at. 18/6. Coals Not Wanted. ■ Coals have been conspicuously neglected with plenty of sellers but few buyers. Even Taupiri, which recently obtained a bis Government contract, has eased, and an offer to sell at £1 6/9 failed to produce a buyer. Pukemiros were on offer at £2 10/, but the announcement of a pending dividend, albeit at a reduced rate, had the eftect of raising the limits of both buyer and, seller 2/6 The reduction m distribution can scarcely have come as a surprise, for investors have been frequently reminded through these columns that so high a rate as 35 per cent could not be looked for as a permanent, or even a frequent, rate. Moreover, the amount now recommended, 25 per cent for the year, is surely an excellent return. Payii»o Concerns. That firmly established and well entrenched concerns can make pronts under present economic conditions, has been demonstrated by a, well-known Christchurch drapery concern, Beath and Co., which hae just completed a satisfactory year, and will again pay out 10 per cent dividend to its, ordinary ■

Another drapery establishment, Adair Bros., of Gisborne, have notified their usual 8 per cent dividend.

During the week the Farmers' Trading Company notified the pending issue of £50,000 of fresh, shares for the purpose of repaying loan money. Last year the company paid off £148,000 of debentures by means of fresh capital obtained. The last balance-sheet issued by the company disclosed a thoroughly healthy position, and the directors have reported that turnover so far this year is in excess of the figures of a year ago. Under these circumstance there should be no difficulty in raising the extra capital now sought. Bank Profits. The announcement^ —received t.oo late for publication last night—concerning particulars of the Commonwealth Bank profits for the last financial year confirm the views expressed in these columns concerning the general position of the trading banks. The writer has contended that although the banks cannot entirely escape the ill effects of monetary stringency, they can make profits in good times and in' bad, for the simple reasons that so long as commerce continues their services are indispensable. They supply two vital necessities, currency and credit, and for both services they can demand and secure a fair return. Judged from this standpoint bank shares must be good buying at the present time, whether or not market bottom has been reached. The interest return is now in line with those of | ordinarily good stocks, the security is undoubted, and when the swing of the pendulum moves up again, as it will some day, banks shares will surely lead the way. SOUTHERN PRODUCE. CANTERBURY MARKETS. POTATOES AT LOW PRICES. (By Telegraph.—Pnfss Association.) CHRISTCHUKCH, Friday. Chief interest now centres in potatoes, of which there is a moderate turnover. There are sellers of September deliveries at £3 12/6, f.0.b., s.i., which is equal to £2 10/, or £2 12/6 on trucks. The Wingatui loaded 2640 sacks of potatoes at Tiinaru this week, and is now loading at Lyttelton, where she will take on another 5000 sacks for Auckland. During the past six weeks shipments to the North Island have dropped steadily, compared with the shipments for the corresponding period last year, the figures being: 1928-29, 64,996 sacks; 1929-30, 52,976, a decrease of 12,020 sacks in six weeks this yr.ir, as compared with the same period last year. The market for oats is quiet, although there is a better consumption demand from the North. Quite a number of small parcels have been sold, but there are no large quantities changing hands. Values to-day are 4/1 Lyttelton, 3/9 Dunedin, and 3/8 Bluff for A's and a penny less for B's. The chalf market is quiet. A little more is offering now at prices which will make possible competition with the chaff imported from Tasmania. To-day's quotation is about £5 on trucks for good bright. Although Auckland is prepared to buy Tasmanian chaff, it is not so good in quality as that grown in Canterbury. Fowl wheat is quoted at 6/2, f.o.b. There is some demand from America for Chewing's fescue, but all No. 1 grade seems to have been disposed of and only second quality appears to be offering. Buyers are not keen to operate ■ for this, and best quality is worth 1/ lb, f.o.b. The imposition by America of a 40 cents duty on brown top has had the effect of stopping the export of this seed, which previously went to America in large quantities. Unless the duty is removed or reduced the prospects for this seed next season will not be bright. Best quality machine-dressed is quoted at lid to llMid lb. but no business is passing. The market for crested dogstail is steady at BMsd to 9d, f.o.b. There were some orders from England and the Continent recently, but not sufficient to affect the market here so far as price is concerned. OVERSEAS MARKETS, . PHICES FOR METALS. TIN QUOTED HIGHER. LONDON, September 11.(Quotations on Sept. 4 in parentheses.) Copper.-Spot. £47 6/10% (£47 6/3); three months, £47 10/7% (£47 8/9). Electrolytic Copper.—Spot, £50 10/ (£SO 10/); three months, £51 10/ (£sl 10 Wire Bars.-£sl 10/ (£sl 10/). Lead-Spot. £18 5/ (£lB 3/9); three months, £18 5/ (£lB 3/9). Spelter—Spot, £16 (£l6 1/3); three months, £16 7/6 (£l6 10/). Tin—Spot. £134 11/3 (£133 1/3); three months. £136 8/9 (£134 16/10%). Silver—Standard. 16% d (16 9-16 d) per ounce; fine, 17 15-16 d (18% d).

DAIRY PRODUCE. Messrs. Dalgety and Company, Limited, report having received the following cablegram from their London principals, Messrs. Samuel Page and Son, dated 11th instant:— , , , Butter.—High price of Danish has mcreased demand for Australasian. New Zealand, finest salted, at 124/ to 128/; Danish, at 154/ to 155/; Australian, finest unsalted, at 124/ to 126/; finest salted, at 123/ to 125/; g.a.q., at 120/ to 122/. Cheese.—The market is firm. New Zealand, white, at 73/ to 74/; coloured, at 72/ to 78/; Canadian, white, at 76/ to 80/; coloured, at 70/ to 71/; Australian , , white, at 71/ to 73/; coloured, at 71/ to 72/. Messrs. Allen and Findlay have received the undermentioned cabled report from their principals, Messrs. Armour and Company, dated London, September 12:— Butter.—Market improved on demand. New Zealand: Salted, 124/ to 128/; unsalted, 144/ to 148/. Quiet. Australian: 122/ to 126/- ' „ , , Cheese—Market steady. ftew Zealand: White, 71/ to 73/: coloured, 72/ to 74/. Messrs. A. H. Turnbull and Co. have received the following cable from their London principals, Messrs. W. Weddel and Co., dated London, September 12:— Butter.—Danish, 154/ per cwt. New Zealand: Unsalted, 146/ to 150/; salted, 124/ to 128/. Rather better demand. Cheese—New Zealand: White, 71/ to 72/ per cwt; coloured. 72/ to 74/. Market steady. Canadian: White, 76/ to 78/; coloured, 78/ to 80/. CHICAGO WHEAT VALUES. CHICAGO, September 12. Wheat for delivery in September is quoted at Chicago at 81% cents per bushel. For December delivery the rate' is 86% cents, for March 90% cents, and for May 93% cents. BRADFORD TOPS. LONDON, September 11. The Bradford tops market is quiet, awaiting the opening of the London wool sales. Quotations, together with those previously ruling, are as follows: — Aug. 21. Aug. 28. Sept. 5. Sept. 11. d. d. d. d. 64's 275 28 2S 27J 60's .... 2G 26 26 25£ oG's 20 20h 20 19 % 50's .... 17 163 lGi 16J 46's 14J 141 14* 14* 40's 141 141 14i 14$ SUPPLEMENTARY WOOL SALE. The second of the supplementary wool sales which were arranged with the object of giving growers an opportunity to dispose of the balance of last year's clip is to be held on Tuesday next. The catalogue will not be a large one, as holders prefer to take their chances of the market when the new season opens in November About 300 bales will be offered, of which from 50 to 60 bales will be fleece wool.