THE WEEK REVIEWED.

Auckland Star, Volume LXIII, Issue 137, 11 June 1932, Page 4

THE WEEK REVIEWED.

BUSINESS CONTINUES FAIR.

i BANKS FAIRLY STEADY. il , GOVERNMENT STOCKS PREFERRED. i 1 Considering the unsatisfactory nature, generally speaking, of economic conditions, ; business on the local Stock Exchange j keeps up remarkably well. Turnover for tin' week ended last night was quite up (o the level of recent weeks, and values, , on the whole, were well maintained. Australian issues, both banking and ( general, play an important part in the < turnover on New Zealand Exchanges, and any movement up or down on the Sydney or Melbourne Exchangee is promptly reflected here. At the moment investors in the Commonwealth are awaiting with the keenest interest the outcome of the New South Wales elections. It may be added that they are awaiting the issue with confidence, satisfied that Mr. Lang's party will be defeated. On this assumption they have operated quite freely during the past week with higher rates ruling in most cases. With The Banks. Although somewhat irregular, there lias been a good demand iu the bunking section, and turnover has been fairly well distributed. In this connection it is interesting to note that investors are apparently not greatly perturbed at the low rate of interest being paid in most cases. They are evidently taking the long view, namely, that the banks arc in each instance thoroughly sound and that higher rates of dividends are bound to come as soon as general conditions improve. At this point it may be well to emphasise that, judged by paet experience, the bank directorates are likely to take the iirst available opportunity to buttress up their reserves, which in some cases have been drawn upon, before distributing profits to shareholders at the old rates. Meanwhile, the £'20 shares of the Hank of Xew South Wales, which carried only 5 per cent per annum dividend on the last quarterly payment, have sold at £25 5/, a rise of 7/0 in the week. Unions, which paid only 4 per cent per annum at the half year, advanced 4,,'G with a sale at £0 10/, the highest figure realised since January. Despite the fact that Unions carry a contingent liability against I heir share capital of £10 a share, they are evidently valued higher by investors than is the fully paid scrip of Xew South Wales. The return to the present purchaser of these shares, based on the last interim dividends, would be approximately 3 per cent in the ease of Unions and 4 per cent for New South Wales. Before the slump Unions I>aid 15 per cent regularly and Xcw South Wales 10 per cent, plus 214 per cent bonus. Commercials have been very steady, with salee from 13/4 to 13/6. These shares paid IP/4 per cent dividend last year, but no distribution was niade at the half year, and there is considerable speculation as to the recommendation the directors are likely to make after accounts close at the end of this month. Despite the generous nature of the New Zealand distribution, namely, 14 1-3 per cent, the shares, after a temporary rise immediately following the directors' announcement, have slipped back, and final sales at £2 2/9 and £2 2/10 represent the lowest figures accepted since March.

Nationals Are Low. Nationals of New Zealand have eaeed still further, and after a sale at £3 2/4 offers to sell at £3 2/ failed to bring business. This brings Nationals to the lowest valuations recorded since the present slump began. Two years «i«o they were valued on 'Change at £6 10/. The last interim dividend was at the ] rate of 8 per cent per annum. The " shares are £10 each, paid to £2 10/, thus ! carrying a contingent liability of £7 10/ ; per share. ! Trend of Market. > The trend of the market since Christ- • mas Eve ie shown in the following ' table:— Dec. March June Juno 23, 18, 2, 9, ; Bank. 1031. 1932. 1032. 1032 I Australasia . .. 180/ 181/ 183/ 183/ ■ Commercial ... 10/5 13/11 13/4 13/0 . iv.S. mid A. ... 91/0 80/ 80/ 80/ . Ni-.-icniil (N.Z.) 80/ (!7/C 04/ 01/0 ' National (A'sia) 200/ 102/ 105/ 200/ ' N.S. Wales 570/ 407/0 405/ 005/ : New Zealand .. 45/ 42/(5 43/ 42/0 Union 157/0 135/ 130/ 130/ Fixed Term Issues. There has been renewed inquiry for Government Stocks, and under a steady demand late values were fully maintained. Five and a half's were particularly firm, and a final sale yesterday was 10/ up at £09 10/. A feature of the week was aa increased inquiry for approved local body issues, and sales were made of the scrip of Auckland City, Auckland Fire Board, Devonport Borough Council, and Mount Eden Borough Councils. Values generally are lower than they were a few months back, but the difference is less than might have 'been expected in view of the Government's action in reducing interest rates. Insurances Firm. The insurance section has been, distinctly firm. New Zealands maintained recent gains with sales at £1 16/7%, while South British advanced 2/, having a final sale at £2 10/0. Both Standarde and Nationals also shared in the popularity of this class of security, with sales at £1 19/ and 11/ respectively. Waihis Down. A notable feature in the mining division was a further easing in Waihis, which changed hands at 14/8 and 14/6, the lowest accepted for this scrip for a considerable period. A few months back it was priced as high as 17/6. Investors have evidently been impressed by the statement of Mr. Mitchis-on, chairman of directors, at the annual meeting in London, wherein he emphasised the narrowing margin of profit upon which the company is compelled to work under existing conditions. Amongst local issues, the scrip of Alexander Mines, Ltd., which recently announced a 1/ dividend, has received special attention, and a eale was made yesterday at 18/3. These are £1 shares paid to 13/0. The Alexander Mines Co., which has been operating in the Reefton district for a number of years and which incurred considerable expense in more or less fruitless operations, appears to have found a payable level, and excellent returns have been obtained during recent months. Australian Issues. „ Holders of general Australian scrip were firm in their ideas of value, and in most eases buyers had to meet the higher market. Huddart-Parkcr maintained recent valuations at £1 2/, while British Tobacco at £1 8/3 and Colonial Sugars at £40 10/ both showed advances. The biggest rise," however, took place in Tooths Brewery, which, at £1 0/6, showed a rise of 4/6 over the previous sale. Mount Lyells eased further with a transaction at 10/9. this being in accord with the continued unsatisfactory condition of the world's metal markets. Dominion Securities. < The demand Tor Dominion securities ' was rather quiet, and wae mainly confined to a few popular lines. Auckland Gas ' and Wilsons Cement again led the way, with unchanged values. Farmers' Trading, ' whose directors recently announced the ] passing of the annual dividend, slipped - •Y'-n 1 1 nV.V/ alw of tliG 8 / shares at 1 3/0 and 3/4%. Farmers' Fertiliser were un- ' altered at 12/, while a parcel of Sanford's ordinary XI shares was disposed of at f •i,. yew Zealand Breweries wore asked 1 or daily at £1 4,', but the offer failed '. . to tempt holders. 1

Latest Sales. Sales completed since last review have been as follow:— Banks.—Xew Zealand, £2 3/ £2 2/9, £2 2/10; New South Wales,' £24 17/0, £25 2/0, £25 5/; Commercial of Australia, 13/0, 13/4, 13/tf (2); National of New Zealand, £3 2/4; Union, £8 16/. Insurance. —New Zealand, £1 1(3/7% (2); South British, £2 a/0, £2 10/0 (2) • Standard, £1 19/; National, 11/3. Government Sstocks, etc. — 5Vz (1937) £99 (2), £99 10/; 5% (1937), £90 10/; 5% (1927-41). £94; 5% (1933), £08 10/ (3); 4% (1939), £92 12/0, (1038) £92 10/. Devouport Borough Council, 0 (1903), £100; Mount Eden Borough Council 5% (1001), £97 10/; ditto, G% (19;12), £ 10,'j 10/; Auckland City, 5V4 (I960), £95; Auckland Eire Board, 6 (1939), £100 10/ Mining.—Waihi, 14/8; Blackwater, 8/6; Golden Point, 5%d; Alexander, 18/3; Golden Dawn, 5/9. 6/. Miscellaneous.—Huddart-Parker, £1 2/ (2); British Tobacco, £1 8/3; Colonial Sugar. £40 10/; Mount Lyell, Ki/9; Tooth's Brewery, £1 0/6; Auckland Gas, £1 0/6, £1 0/7; Moturoa Oil, 3/0; Wilsons Cement, £1 7/; Sanford lord.), 3/; Farmers' Trading. 3/9 (2); Union Steam, 19/3; Farmers' Fertiliser, 12/ (2).