THE WEEK REVIEWED.

Auckland Star, Volume LXII, Issue 282, 28 November 1931, Page 4

THE WEEK REVIEWED.

SATISFACTORY BUSINESS.

VALUES WELL MAINTAINED

GILT EDGES UNSETTLED,

Considering that the Dominion is in the throes of an election crisis and that matters in the financial world are still unsettled, the week ending last night provided an excellent volume of business for Auckland stock brokers. The turnover was substantially less than for the second week iu the month, when there was a mild bornn, but it was well up to normal dimensions and, generally speaking, was based on. the previous advanced quotations. The least desirable feature was that, as for the last weekly period, investments in their range showed a contracting tendency. It is scarcely surprising that with an election day ,in eight investors should be apprehensive of the future and confine their attention to lines which they consider have the least chance of being interfered with when the new Parliament meets. An event of outstanding importance during the week just closed has been the defeat of the Scullin Government in Australia, and an immediate effect has been to harden stocks in the Commonwealth. It is considered in financial circlcs that the Federal election will result in the return of a National party pledged to steer the country back to prosperity through the adoption of sound economic principles. So far the firmer trend has been barely discernible on local exchanges, but most fluctuations have been in an upward direction. As was the ease the previous week, bank shares have again been responsible for over a third of the total turnover, and once more New Zealands and Commercials have divided the bulk of the business. There has been a steady demand for the scrip of the Dominion's leading bank, but at £2 9/, the opening figure, it was highly priced, and purchasers succeeded iu bringing it closer to its real value when the end of the week saw sales at £2 8/. Commercial Bank, on the other hand, exhibited, as is frequently the case, a variety of changes. After opening the week at 16/, the scrip eased to 15/9 on Monday and Tuesday. Thence onward, buyers busied themselves over this popular line with the result that final sales were made up to 16/8. The ordinary shareholder who takes no part in these market activities may be excused for a feeling of bewilderment at the kaleidoscopic changes brought about by the " bulls " and the " bears," wondering, as they no doubt do, what their shares are really worth. It may be some consolation to receive the writer's assurance that in the long run values will most certainly find a resting place that will be based on the earning .powers of the bank and its unimpeachable security. In this connection, the reminder may again be given that there is little likelihood of ■the bank retaining its present dividend rate of 11% per cent, which is higher than is being paid by any of the other Commonwealth banks. Apart from New Zealands and Commercials, business in the section was. confined to Nationals of Australasia, Nationals of New Zealand, Bank of Australasia, and Bank of New South Wales, with a single eale to each. Since last report some particulars of last year's trading of the English and Scottish Bank have become available. These show a drop in net profits of more than half, which may be taken as a guide in estimating earning prospects of Australian banks. The amount earned for last year, namely, £266,657, is litill sufficient to make a reasonable return to shareholders, namely, 8 per cent per annum, and yet leave a substantial margin for reserves, which now stand at over £3,000,000. The Market Trond. To enable investors to note the trend of the market in recent months, 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. June Nov. Nov. 15. 26. 20. 26. Australasia . . . 172/6 187/ 190/ 189/ Com. of Aust.. . 14/ 14/5 16/3 16/8 National (N.Z.) 100/ 92/6 94/ 94/ N.S. Wales 540/ 497/6 585/ 577/6 New Zealand . . 49/3 46/4 49/ 48/ Union 175/ 155/ 102/ 162/ E.S. and A. ... 90/ 82/6 89/6 90/ National (A'sia) 205/ 190/ 200/ 200/ From the foregoing it will be seen that bank shares, generally speaking, have fully maintained recent values. Insurances Popular. The insurance section has, as usual, attracted a steady demand, and business was transacted in all of the four Dominion companies that arc listed. New Zealands, at £2, and South British at £2 14/6, were pegged down to stable | values, showing an approximate return to I the present investor, based on latest dividends, of 5 to 47a per cent per annum. The scrip of the two Dunediti concerns, which sold at £2 3/6 in the case of Standards and 13/ for Nationals, show, on a similar basis, approximately 5% per [ cent. Gilt Edged Securities. Interest in Government stocks is still less keen than it was a few weeks ago, and the market generally showtj an easing tendency, which may be cxpected to continue until the elections are over. Local body debentures have been in fair demand and sales have taken place of Auckland City, Auckland Harbour Board, Auckland Power Board, and Mount Eden Borough Council. In the last-mentioned case holders/had to accept a £2 reduction on the last sale price, which may be attributed to the recent difficulty which arose over the percentage reserved for sinking funds. Mining. There was a steady inquiry all the week in the mining section, but actual sales were restricted to Waihis and Grand Junctions, which showed practically no change, and a sale each of Blackwater and King Solomon. In the case of the former an advanced price was obtained, but King Solomons eased from the last sale at 2/3 to one at 1/8. This was doubtless a result of the latest report from Gore, which indicates that some trouble is being experienced in maintaining profitable contact with the sluicing bed. Miscellaneous. Only moderate business was transacted in the miscellaneous sections. ■ Goldsbrough Morts had a sale at £1 2/3, after which came a slight firming. Towards the close of the week other Commonwealth concerns. namely. Australian Glass, British Tobacco. Colonial Sugar. Mount Lyells, and Electrolytic Zinc, all showed an improvement, which will probably be continued if the present trend on Australian exchanges is maintained. Not much business took place in Dominion issues, sales being confined to ; Auckland Gas, Taupiri Coal. New Zealand Breweries, Robinson Ico Cream, Wilsons Cement, and Farmers' Trading. The Farmers' Trading Company is paying the usual 3% per cent.interim dividend on its preferential shares at the end of the present month, and the scrip ha.=? been irK regular demand for some time. Latest Sales. Sales completed since last review have been as follow:— Bank of New Zealand: £2 9/,'£l2 8/1, £2 8/3, £2 8/ (2); D mortgage, £1.6/9. Commercial Bank of Australia: 16/, 15/9 (2), 15/10, 15/11, 16/, 16/6, 16/7, 16/8 (2). National Bank of Australia (con.): .£5. Bank of Australasia: £9 9/. i National Bank of New Zealand; £4 14/. Bank of New South Wales: £29. New Zealand Insurance: £2 (5). South I British: £2 14/6 (4). National: 13/ (2). i Standard, £2 3/6 (2). New Zealand v erics: £1 10/, £1 9/10%. Tooths: i 19/10. ,

Government Bonds: 5 5 /4 (1933), £97 10/ (2);5% (1937), £99; inscribed, £98 15/. Auckland City: 5% (1940), £96 (2); 5% (1957), £96. Auckland Harbour Board: 5% (1947), £99 10/. Auckland Power Board: 5 (1936), £95 15/. Moupt Eden Borough Council: OV4, (1964), £89. Waihi: 15/3 (3). Grand Junction: 3/5 (3), 3/6. King Solomon: 1/8. Blackwater: 4/4. Taupiri Coal: 18/, (pref.), £1 2/6. Dalgety and Co.: £7 16/. Robinson Ice Cream: 17/. Wilsons Cement: £1 16/6. Farmers' Trading: Ord., 6/1 (2), A pref. 14/6 (2). Mount Lyell: 19/. Goldsbrough, Mort: £1 2/3. Colonial Sugar: £36, £36 5/. British Tobacco: £1 5/8. Auckland Gas (con.), 17/3.

BUSINESS IN THE SOUTH. (By Telegraph.—Special to "Star."') CHRISTCHURCH, this day. The "Christchurch Times" reports as follows: —Business commenced briskly in the trading period that ended last night. There was a slight lull at midweek, but the markets closed with active conditions. Apart from the mining section the bulk of the business was in bank, loan and agency and brewery shares. Developments in Australia have affected the markets, and price' movements have been somewhat irregular. The recorded business affords the following comparison:—This week, 28,194; last week, 27,160. An analysis of business gives the following results, with figures for the preceding period in parentheses:—Banks, 2384 (2235); insurance, 50 (nil); loan and agency, 2750 (4200); breweries, 2200 (2075); meat, 1100 (750); mining, 19,000 (16,700); miscellaneous, 710 (1200).