THE WEEK REVIEWED.

Auckland Star, Volume LXI, Issue 229, 27 September 1930, Page 4

THE WEEK REVIEWED.

SHARP FALL IN STOCKS. BANKS DROP AGAIN. BUYERS MAKE THE PRICES. Local brokers will have little pleasure in recalling the doings of the past week, for it has been the most unsatisfactory from the point of view of business experienced for many a year. Some months since it was forecasted in these columns that the period we are now passing through would bring the tightest pinch in Commonwealth trade, and that stock exchange business wouid suffer in sympathy, but few —certainly not the writer—anticipated so pronounced a break in securities as has recently occurred. The slump on the Commonwealth centres was quickly reflected locally, and before the week was out selling pressure had extended beyond Australian securities to a good percentage of New Zealand stocks that would probably have remained steady but for this outside influence. From one cause and another there have been fewer buyers than has been the case for a very long period. The week under review commenced on Saturday last with no sales. Monday was a holiday and by noon on Tuesday only a couple of sales had been received on the local exchange. Commencing on Wednesday business livened up, but it was almost all at the expense of holders, many of whom had the mortification of watching their securities depredate in value day by day. The banking section almost monopolised interest, accounting for half the sales recorded and considerably more than that proportion of total turnover. Commercials again drew most fire from the "bears," and dropped in quick stages from 17/ to sales at 14/9. This latter figure proved bed rock for the moment, at any rate, as there was a buyer at 15/ at the last call yesterday, with sellers asking 15/6. New South Wales also came in for a deal of attention, but although a number of sales took place the scrip held fairly steady and only showed a drop of 2/6 in the week. Unions came down with a hump, sales at £9 showing a decrease of £1 in less than a fortnight, while Nationals of New Zealand with sales first at £5 7/3, and later at £5 2/6, were down 9/ in a week. Of other scrip in this section, Australians of Commerce declined 1/3, Australasias 5/, E.S. and A. 2/, New Zealands 1/3, with Nationals of Australasia unchanged.

6 Changing Values. D The marked fluctuations which have 3 taken place in banking shares must be 0 almost bewildering to the ordinary investor. The following tabic showing values a year ago and also a month ago by comparison with current values should prove of assistance in noting the general trend:—

Percentages Tell A Story. 3 How the different scrip has fared during the past twelve months is clearly shown ill the following table, which shows the percentage decline in the shares of the principal banks during the past twelve months:— Percentage of fall Bank. in 12 months. New Zealand 13.43 per ccut N.Z. National 24.63 „ „ Australasia 24.77 „ „ U.S. and A 33.33 " " ' Union 39.(if) " " New Soutli Wales ... 40.63 " " National of A'sia .. 41.02 " " i Aust. of Commerce .. 40.0S " " ; Com. of Australia .. . 50.00 " " Insurances Drop Further. The weakening tendency which appeared , in the insurance section the previous week continued. New Zealands dropped another 1/6, with a sale at £1 19/6, and South , British were 6d easier, with two sales at , £2 16/6. Nationals were unchanged, with a transfer at 13/10. Australians Neglected. Australian securities were offered at low rates all the week, but buyers were chary of investing with the market still falling. Australian Glass had a sale at £1 5/ and British Tobacco one at £1 Uj/3, but other lines were neglected, despite 'what looked like tempting prices. A table recently issued by the National Bank of Australasia shows that leading industrial stocks in the Commonwealth had on August 31 declined from 33 1-3 in the case of British Tobacco, 50 per cent in many, and 68.4 in Holden Motors. Such figures illustrate the gravity of Australia's financial position. Breweries Down Too. With little interest in Dominion stocks, a notable movement has taken place in N.Z. Breweries. Holders gradually lowered their limits to £2 5/6, but without leading to business. This shows a drop of 5/ to 5/ within the last few weeks. Auckland Gas, Waihis, Bycrofts, Northern Steam and Wilsons Cement have been amongst the steadiest in the local group, but many have weakened, including Haywards Pictures, offered at 11/6. Government Stocks. There has been the usual steady demand for Government stocks, but bidders have shown a tendency to shade their buying limits, and, with holders as firm as ever, there has been little chance to do business. The Outlook. Whether last week may prove to have brought the climax in the sharp acceleration of a long decline cannot be estimated. The facts of the moment do,not encourage this hope. The Commonwealth is at present overhung by the dark shadows of political conflict, -and until these have been dispelled economic conditions will of necessity be unsettled. Once the politicians can* agree upon a scheme that will give effect to the principles enunciated by Sir Otto Niemeycr an important step towards stability will have been taken, and the advent of a new productive .season in the Commonwealth would accelerate this improvement. Meanwhile there is nothing to be gained by panic measures, except by a few speculators "bearing" the markets to secure bargains at the expense of weak or timid holders. In regard to New Zealand securities, it must not be overlooked that the majority of the concerns listed on the Exchanges have shown reasonable profits for last year's business and their balance-sheets indicate considerable financial strength in many instances.

Sept. 25, Aug. 2S, Sept. 25, 1020. 1030. 1030. , Bank. £ s . d. £ s. d. £ s. d. ) Niiw Zealand 3 2 S 2 15 11 2 14 3 N.Z. National <> 16 0 5 14 0 5 2 0 > A'sia I t 12 6 11 17 (>11 0 0 E.S. and A. . 8 5 0 5 12 (! 5 10 0 Union 14 IS (i 10 0 0 0 0 0 ) N.S., Wales . 51 7 (i 35 0 0 30 10 0 Nat. of A'sia 10 10 0 13 15 0 11 10 0 Aust. of Com. 1 14 0 1 1 11 IS 4 Com. of Aust. 10 0 10 11 14 0