THE WEEK REVIEWED.

Auckland Star, Volume LXIII, Issue 281, 26 November 1932, Page 4

THE WEEK REVIEWED.

BUSINESS FALLS OFF.

EYES ON WELLINGTON

DROP IX GOVERNMENT STOCKS

Last week attention was drawn m these columns to the disturbing effect which Parliamentary deliberations were having on the investment market. This factor has been accentuated in the interim. A week ago the imminence of a central bank-bill and the possibility of substantial changes in exchange rates were troublous topics. The exchange Issue appears to have been settled for the time being, but an addition of still graver import has been the hint given by the Prune Minister of drastic legislation having for its object the further lowering of interest rates. As a consequence of this latest pronouncement business on the local Stork Exchange, which had been rathe. tuHshowed a marked falling off during the week which ended last night. The most notable reaction came in the -cction comprising Government Stocks. Fearing an increase in the 10 per cent stamp tax or some other arbitrary interference with interest earnings, investors tool fright and promptly marked down the values of so-called gilt-edged stocks. Thus swt dropped £2 10/ n the week with a sale at £97 10/, and 4%'-.were 07/6 lower with a transaction at £.).). " In this connection the following table should be of interest to investors:— Interest return Current Accrued per Government price, interest, annum* Loan. £ *■ <k £ "• «• f *; d n 53 1937, Sept. 97 10 0 13 7 5 19 0 -U 1937 •• 00 0 0 15 6 517 0 41 1938 05 0 0 0 2 0 S 0 0 5 1937 ...... 03 00 113 G S 0 ' *The column headed " Interest return " shows the annual return to the present Government stamp tax oE 10 per cent.

The interest return to the present purchaser has risen approximately 15/ per cent in the case of sV 3 's and 10/ m the 4% "a. Banks. The banking section was steady but quiet. New ' Zcalands again attracted most 'attention and sales were made from £*> 5/7 to £2 0/ and then down to £2 5/6, with holders still prepared to accept the lower figure. Commercials were unchanged with sales at 14/4. Trend of Market. The trend of the market since Christmas Eve is shown in the following table: — . BANKS. Dee. March Nov. Nov. 28, IS. 3 8, 25. 1031. 1032. 1032. 1032. Australasia .... 180/ 181/ 105/ 105/ Commercial .... 16/.1 13/11 14/4 14/4 E.S. and A. ... 01/0 80/ 91/ 01/ National (NX) 80/ 07/0 73/ 70/ Nat. (A'sia) con. 105/ 07/0 100/0 111/0 N. South Wales 070/ 407/0 500/ 500/ New Zealand .. 45/ 42/0 45/7 45/0 Union 157/0 135/ 155/ 150/ MISCELLANEOUS. Dec March Nov. Nov. 23, IS, 18, 25. 1931. 1032. 1032. 3032. N.Z. Insurance . 40/0 37/ 43/0 42/0 South British . 54/ 40/ 50/0 55/0 Goldsbrough, M. 24/ 21/0 22/0 22/3 Colonial Silgn* .810/ 720/ 900/ 045/ Auckland Gas . 23/10 21/9 21/0 21/4 Insurances AJso Down. Insurances have eased in sympathy with Government Stocks. This is a natural reaction, as the insurance companies have heavy investments in public bonds. New Zealands sold 6d lower at £2 .3/ witli holders still prepared to unload at that figure, and South British were 9d lower at 55/9 and sellers left in at the sale price.

Mining. There was again a steady demand for Waihis, but buyers were scarcely so keen. Only three fresh sales- were put through, and for these 19/ was the top price. Other mining scrip was bid for steadily and a fair list of sales was put through. King Solomons moved up to 2/3 and a record price was paid for Alexanders, the £1 scrip paid to 13/6 changing hands on Thursday at £1 3/.

Miscellaneous. In miscellaneous securities the demand was- only moderate, and both for Australian and' Dominion issues buyers confined their inquiries to a very restricted field. Colonial Sugars regained some of the ground lost the previous week when the scrip changed hands at £45. latest sales being at £46 5/ and £47 5/. British Tobaccos eased 1/9 early in the week but later picked up .1/ of the drop with a final sale at £1 11/9. Burns, Philps were asked for regularly at £2 3/, Australian Glass at £2, and Henry Jones at £1 14/. These are high prices for £1 scrip, and it is not surprising that the chairman of directors of Henry Jones, Ltd., has published a warning to investors against pricing the stock so high. '

During the week the directors of New Zealand Breweries, Ltd., announced their intention to pay an interim dividend at the reduced rate of 3% per cent for the half year. The reduction was apparently anticipated by the market, as the shares have eased 2/3 within the last few weeks. Auckland Gas shares were steady with sales of the ordinary at £1 1/4 and of the contributing at 15/.

Latest Sales. Sales completed eince last review have been as follow:— Banks.—New Zealand, £2 5/7, £2 6/, £2 5/9 (2), £2 5/6; Commercial, 14/4 (2); Union, £7 16/. Insurances.—New Zealand, £2 3/ (3); South British, £2 16/, £2 15/9. Breweries. — New Zealand, £1 6/; Timaru (con.), 3/6. Government Issues, etc.— (1938), £96 7/6, £95 5/, £95; 5 (1937), £93; 5% (1937). £100, £98 15/, £97 10/; 5Yi (1941), £96 2/6. Auckland Harbour Board, 5% (1949), £96 2/6.

Mining.—Waihi, 18/8, 19/ (2); Wailii Grand Junction, 3/7, 3/6; Golden Dawn, 5/3 (4); Alexander. £1 2/6, £1 2/9, £1 3/; Okarito. 9/1 (2); Golden Point, 3d; Nolcornai, 6/4; King Solomon, 2/3. Australian.—British Tobacco, £1 10/9, £1 11/9 (2); Australian Glass, £2; Colonial Sugar, £46 5/, £47 5/; Mount Lyell, £1 0/5. Dominion.—Auckland Gap, £1 1/4; ditto (con.), 15/; Northern Steam (con.), 2/4; Bycroft, £1 11/; National Timber, 4/11; Guarantee Corporation, 6/; Union Oil, £1 4/.