THE WEEK REVIEWED.

Auckland Star, Volume LXII, Issue 96, 24 April 1931, Page 4

THE WEEK REVIEWED.

BUSINESS ONLY FAIR.

BANK SHARES SLIP AGAIN

EXCEPT NEW ZEALANDS

i Owing to Anzac Day being observed j as a holiday, the Stock Exchange week ; under review has- been curtailed by a day. > Up till last night business was very irrecular; quiet for the most part, but , with occasional activity. Turno"\ er on the whole was moderate, and sales actually completed were confined to an unusually narrow range. A notable feature was the comparative absence of business in Australian banks and other Commonwealth securities, this being the natural sequence of the financial crisis in New South Wales. Buyers were markedly hesitant with their bids, and those put forth were frequently on what was considered a bargain basis. Even Commercials, which can usually be depended upon to help swell the total sales, only accounted for a single. This transaction, made at 14/10, showed a drop of lOd in the week, and represents fairly well the fall that has taken place on Australian bank shares over the period. The only other Australian bank sale was one of Australasias, which changed hands on Monday at £10 2/6. Yesterday there were sellers at £10, with no buyers offering. In marked contrast to the position of Australian banking scrip is the attitude of investors towards those whose business is primarily in this Dominion. Thus New Zealand Nationals were asked for regularly at £5, whilst New Zealands, fortified by the recent dividend announcement, were so keenly sought after that buyers had to again raise their limits to obtain requirements. The week opened with sales at £2 11/9. and finished up with a transaction at £2 13/2. This is the highest price realised since November last. In February the scrip touched low water mark with sales at £2 2/9. The difference, 10/5, represents a big profit in a little over two months, and illustrates in a striking manner the opportunities that are available to investors under existing conditions. The Market Trend. With values fluctuating from week to week, even from day to day, it is difficult for the average reader to come to a conclusion as to the general trend of the markets. The following table, showing the values of various banking scrip, as near as could be assessed, on various dates this year, will be of assistance:— Jan. Feb. April April 15. 3. 16. 23. •Australasia ... 172/6 170/ 205/ 195/ Com. of Aus. .. 14/ 14/5 15/8 14/10 National 100/ 97/ 105/ 105/ N.S. Wales 540/ 550/ 542/6 522/6 New Zealand .. 4!>/3 45/6 51/3 53/ Union 1757 136/ 172/6 162/6 Nat. of A'sia. .. 200/ 190/ 215/ 210/ •Bank of Australasia paid its final dividend of 6/ per share on March 27. ' With so Tew sales to give a guide, it : must be emphasised that latest valuations must be accepted as approximate. It will ' be noted that the trend of values, which ! had been fairly stable with a general firming tendency, has again shown a sharp i decline.

Insurances. There has been a steady demand for insurance scrip in recent weeks, and this has been stimulated over the latest period by the announcement that the South British directorate intend to pay the interim dividend at the usual rate of 1/4 per share. Transactions were registered in each of the four leading companies. namely New Zealands, South British, National and Standards, with recent values fully maintained. The last mentioned, which had been advancing steadily in recent weeks, showed a rise of 5/ on the last sale in February. Gilt Edges Strong. The preference for fixed term securities in Government and local body issues continues. The Wi per cent tax frees changed hands on Monday at £98. but further offers at tile same figure failed to bring business. and a sale was made after the last call yesterday at £98 7/6. 5Wb were also in demand, with a preference for the 1933 maturity, and the ecrip moved up to a sale at £99 7/6. Local body gales included one each of Auckland City, Auckland Harbour Board, Wellington Harbour .Board, Hamilton Borough Council, and Sumner Borough Council. In the case of the last-mentioned the purchaser will secure a return based upon redemption at maturity (1939) of £6 6/ per cent per annum. So favourable a return as this is not often available in local body scrip.

Mining. Waihis have been in steady demand, with recent rates unaltered. An announcement has been made that the usual interim dividend of 1/ per share will be paid. King Solomon had three sales, and improved from to 2/4. Kawaraus are not often heard of nowadays, but a buyer came forward on Wednesday for a parcel, and secured it at 6d. Another speculative line also attracted business, Taranaki Oil changing hands at , 1/. Kuala Kampar Tin had another sale at 6/. In the desperate competition brought about by the low price of tin on the world's markets only those companies that are exceptionally well situated to produce at low costs can hope to survive. So far Kuala Kampar bids fair to see the issue | through to a finish, and until recently paid regular dividends. Miscellaneous. The miscellaneous section produced little business. Not a single sale of Australian securities took place—a most unusual state of affairs —although there was a good demand for Colonial Sugars and tentative inquiries for British Tobaccos and Australian Glass. Auckland Gas, with a sale at £1 2/11, seems to have definitely dropped from the level of £1 3/3. which represented values for several weeks, and Wilsons Cements, which had three sales at £1 19/3. are slightly easier. Pukemiro Collieries touched a new low level with a sale at £1 15/. This concern has very solid reserves, but investors have evidently come to recognise that in the face of existing competition the excep- • tional dividends that ruled for several years are not likely to be maintained, and the reduction of the interim dividend rate was a timely warning from the directors that smaller distributions may be looked for. Latest Sales. Sales completed since last report are i as follow:— Bank of New Zealand. £2 11/9 (2), £2 12/, £2 13/ (2), £2 13/2. Bank of Australasia, £10 2/6. Commercial Bank of Australia. 14/10. Commercial Bank of Australia, pref., £5 13/. New Zealand Insurance, £2 2/. Standard Insurance, £2 7/. South British. £2 15/ (33National, 13/3. Government Bonds, \Vz (1938), £98. | £98 7/6. Government Bonds. 5% (1933). £99 7/6. Auckland City, 4 (1932), £96 10/. Sumner Borough Council, 5Vn (1939), £93 5/. Hamilton Borough Council, 4V£ (1948), £99 7/6. Wellington Harbour Board, 5% (1940), £97 10/. Auckland Harbour Board, 5Vz (1947), £97 10/. Kempthorne-Prosser, £2 14/ (2). Milne and Chovce (debenture stock), 19/9. Wilsons Cement. £1 19/3 (3). Auckland Gas. £1 2/11. Gear Meat, £1 10/9. Taranaki Oil, 1/. Pukemiro Collieries. £1 15/. New Zealand Breweries. £1 14/2. Waihi, 15/4 (2). Waihi Grand Junction. 2/3. King Solomon, 2/1%, 2/2, 2/4. Kawarau, 6d. Kuala Kampar, 6/.