THE WEEK REVIEWED.

Auckland Star, Volume LXII, Issue 233, 1 October 1932, Page 4

THE WEEK REVIEWED.

BUSINESS QUIETENS DOWN.

VALUES FAiRLY STABLE.

INVESTORS' EYES ON WELLINGTON

Business on the local Stock Exchange continues to ease by comparison with the extreme activity of a month ago. Sales for the weekly period ended last night showed a further falling off, but are still well up to normal standards. Values generally arc well maintained, and the market tone is healthy, but the usual disposition to watch Wellington in the early part of a new; session is again in evidence. The interest of investors is closely involved in many of the issues that are likely to engage the attention of Parliament, and until the Government's intentions on these matters are definitely disclosed the market is likely to maintain a cautious policy. An important feature in general finance is the report that the Hon. Mr. Dowme Stewart is engaged in negotiations in London with regard to the Dominions outside commitments, and in this connection it is gratifying to note the sharp advances that have taken place m the price of colonial stocke on the London market. Banks Are Steady. During the week just closed there has been a steady demand in the banking section, but not a great number ot recorded sales. New Zealands again attracted meet interest. Early sales showed a recovery from the recent easing, but later the scrip slipped back to sales at £2 7/. with more available at that figure. Best buyers dropped their limits to £2 6/6. Amongst the Australian banks Unions showed up beet with sales at £7 14/ and £7 15/, the highest level reached since January. As recently as May the scrip wae available at £6 9/6. Latest dividend rate was 4 per cent per annum. New South Wales also reached the highest value of the year with a eale at £28, £4 above the price in April last. Commercials eased a little with a transaction at 14/10, after which buyers stood off, and a later transaction was at 14/ D. Trend of Market. The trend of the market since Christmas Eve is shown in the following table:— BANKS. Dec. March Sept. Sept. •23, IS, 23, 80, 1931. 1032. 1932. 1932. Australasia .... ISO/ ISI/ 102/ 105/ Commercial.... 16/5 13/11 1. 14/0 E.S. and A. ... 01/6 80/ 00/ 05/ National (N.Z.) SO/ 67/0 80/ 80/ National (A'sia) 200/ 102/ 231/ 281/ N. South Walea 570/ 407/0 5...>/ 5(.0/ New Zealand .. 45/ 42/6 47/3 4i/ Union 157/0 135/ 153/ 155/ MISCELLANEOUS. Ppc. March Si*pt. Sept. 23, IS, 23, 30, 1931. 1932. 1932. 1032. N.Z. Insurance . 40/G 37/ 43/ 43/ South British .. 04/ 49/ 58/ 57/0 Goldsbrough. M. 24/ 21/6 23/3 24/9 Colonial Sugar. 810/ 720/ 970/ 970/ Auckland Gas.. 23/10 21/9 21/ 21/3 The above table indicates that values on the whole have been fairly stable during the past week. Insurances. There has been the usual persistent inquiry for insurance scrip, but buyers have held a little closer to their hmite and have met with some success in their efforts to buy the stock cheaper. Holders of South British lowered their reserves 3d to £2 17/9 without bringing business and finally accepted £2 17/3, a drop of 0d in the week. New Zealands had one sale 3d lower at £2 2/9, but afterwards recovered to £2 3/. Fixed Term Securities.

There wae rather more business in the section embracing Government and local body issues. Five and a half s were unchanged with a transaction at £99 2/0. Attention was drawn in these columns last week to the attractive aspect of the 4% and 5% issues, and it is not surprising that buyers took advantage of the opportunity to get in on what appeared to be a favourable market. The four and a half's had several sales at £95, while the s%'e changed hands first at £96 and later at £96 5/. In this connection the following table should be of interest to inyeetors:— _ ' Interest return Current Accrued per Government price. interest, annum* Loan. £s. d. £ s. d. £s. d. 51 (1037. Feb.) 09 2 6 12 2 5 6 0 5J (1937) ... 06 5 0 11 6 510 6 4J (1938) ... 95 0 0 110 7 5 4 0 •The column headed "interest return" shows the annual return to the present purchaser based on redemption at maturity and after allowance has been made for the Government stamp tax ot 10 per cent. Local body issues were in steady demand and the preference of investors for a fixed rate of interest over a fairly long period was shown in sales of Tamaki Road Board, Central Power Board, Auckland Harbour Board, and Hamilton Borough Council. With the general trend of interest pointing downward it is scarcely likely that any of the buyers in this section will have cause to regret their purchase.

Mining. In the mining section there was a steady demand for Waihis, which are due to pay a shilling dividend on November 1, and the scrip was virtually unchanged with saleg at 17/. Running in close company, the subsidiary concern Grand Junctions had sales at 3/2 and 3/3. Miscellaneous mining scrip was in good demand, but holders were firm and not much business was finalised. The New Guinea project Bulolo, Ltd., appeared on the quotation list once or twice, but although buyers were prepared to give £2 13/ for the five-dollar shares they could not secure transfers. Lowest sellers stood out for £2 16/. Australian Issues. The boom in Colonial Sugars seems to have been halted in the meantime. After further business at £48 10/ buyers temporarily withdrew. They came back with reduced limits and offers to sell at £48 15/ brought* no response. Goldsbrough, Morte and Electrolytic Zincs both receded from the recent high levels, while British Tobacco sold 3d better at £1 10/6. The scrip of the big Island trading firm which has its headquarters at Suva, Morris Hedstrom, Ltd., had its first sale for a lengthy period, a buyer securing «i parcel of the £1 shares at 15/9. Morris Hedstroms trade with a paid capital of nearly three-quarters of a million sterling, and had at last balancing period reserves amounting to £167,000. Last year the dividend on ordinary shares wae reduced to 4 per cent. Dominion Concerns. A feature of the business done in the scrip of Dominion concerns is a continuation of the favourable attitude which recently set in towards those which are directly associated with the farming industry. Thus, Gear Meat £1 shares sold at £1 15/, a rise of 2/2, Farmers' Fertiliser advanced 3d with a sale at 16/9, and tli ere was also business in New Zealand Refrigerating (con.) and Farmers' Auctioneering A prefs. Latest Sales. Sales completed since last review have been as follows:— Banks— N.Z.. £2 7/9, £2 7/6, £2 7/ (3). £2 7/3, £2 7/ (4); Union, £7 14/, £7 15/; Com.. 14/10. 14/9; N.S. Walee, £28. Insurance.—N.Z., £2 3/, £2 2/0, £2 3/; South British, £2 1773. Breweries.—Staples, £16/, £1 6/3.

Government Issues.—l% (19SS), £&> | (5), 5% (1937), £96, £96 5/; 5% (1936), J £0S 17/6; 5Vi (1937), Feb., £99 2/8. Local Bodv Issues. —Tamaki West Road Board, 5% "(1959), £99; Central Power Board, S% (1957). £95 (2); Auckland Harbour Board, 5% (1943), £98: Hamilton. 4% (1947), £S5 15/. Mining—Waihi, 17/ (3); Waihi Grand Junction, 3/3, 3/2, 3/3; Golden Dawn, 5/3- Golden Point, 6%d, <)d; King Solomon, 1/10%. 1/10; Kawarau, 6%d. Australian Issues.—Col. Sugar, £4S 10/ (2); Goldsbrough. Mort, £1 4/9; Electric Zinc, pref'., £1 6/3; Henry Jones, £1 0/10V6, £1 9/9; Morris, Hedstrom, 15/9; British Tobacco, £1 10/6. Dominion Issues.—Westport Coal, 12/6; Wilsons Cement, £1 13/6; Taranaki Oil, 2/8 (3); Union Oil, £1 4/6;. Farmer* Auctioneering, A pref., 15/; N.Z. Refrig. (con). 3/9, 3/8 (2); Auckland Gas, £1 1/6- Farmers' Fertiliser, 16/9; Pukemiro Collieries, £16/; Gear Meat, £1 15/.