THE WEEK REVIEWED.

Auckland Star, Volume LXIV, Issue 41, 18 February 1933, Page 4

THE WEEK REVIEWED.

BIG LIST OF SALES.

gilt edges preferred. VALUES FAIRLY STABLE. Despite difficult trading conditions and general financial stringency, there are still ample funds in a liquid form in the Dominion to sustain a heavy volume of business on 'Change. During the week which ended last night members of the Auckland Stock Exchange put through a. big list of sales, and as_ the class of scrip dealt in was of thte gilt edged t>pe, and a good deal of business is done that is not recorded officially, the aggregate turnover must have been very considerable. Unfortunately, from the national aspect, there are features of the trading that are by no means satisfactory. In his inaugui'al address as president of the Auckland Chamber of Commerce, I\lr. Harvey Turner stressed the importance of investors using their funds in such a way as to promote the development 01 manufacturing and other Dominion industries. This week's returns from the local Exchange give point to his remarks, for, of the business put through, fully three-quarters went to three sections, namely, Government and local body debentures, banks, and insurances. It is a considerable period since so many sales of Government stock have been recorded in a single week s business. This may be accounted for by the fact that transfer restrictions have crippled business with Australia and also with London, while taxes, exchange rates, and tariffs have combined to harass ordinary forms of enterprise to a point where they cease to have any attraction to investors. Values of Government stock have been remarkably steady, and although buyers daily marked their limits down for the morning call they had to advance before the day was over and accept holders' ideas of value. Four and a half's were steady at £96 and 5% (1937, September) at £101. The February issue of 5% 1937 stock paid a half year's interest on Wednesday, after which the scrip sold at £98 5/ and later at £98 10/. Business in local body debentures was again confined to Auckland issues, although a big list of other debentures was on offer daily. The scrip of Auckland City, Transport Board, and Harbour Board each had one sale. Interest Return. The following table indicates the return available to purchasers of Government securities at latest valuations: — Interest return Current Accrued per Government price, interest, annum.* Loan. £ s. d. £> s. d. £ s. d. 51, 1937, Sept. 101 0 0 2 7 1 5 8 6 4J, 1938 .... 96 00 1 09 5 00 •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 of 10 per cent. Insurances Very Firm. There has again been an unsatisfied demand for insurance scrip. Firm offers were available at each call for most of the lines listed, but sellers were scarce. On Monday there were buying bids for seven separate issues, with no sellers offering. Holders of South British stood off for the whole of the week, and those who bought New Zealands had to advance to £2 5/3 in order to secure transfers. Not since the commencement of the slump have prices in this section been so high. Even A.P.A.'s, which have not paid a dividend for a considerable period, found a place on the sales sheet with two transactions at 8/6 for the 10/ scrip. Banks Quietly Steady. There was not much activity in tjie banking section, this being partly due to transfer difficulties in the case of Australian issues. New Zealands showed an easier tendency, dropping 6d in the week with final sales at £2 4/. Nationals of New Zealand also eased a little with a transaction at £3 11/. Commercials were steady at 14/7 to 14/8, and New South Wales improved with a sale at £28 17/6. Trend of Market. The trend of the market since Christmas Eve is shown in the following table:— BANKS. Dee. Jan. Feb. Feb. 22, 27, 10, 17, 1932. 1933. 1933. 1933. Australasia ... 180/ 200/ 190/ 190/ Commercial ... 13/0 15/1 14/7 14/9 E. S. and A. ... 82/6 92/ 89/9 89/9 National (N.Z.) 65/ 65/ 72/ 71/ Nat. (A'slal con. 105/ 112/6 112/6 112/ N. South Wales 520/ 570/ 572/6 577/6 New Zealand . . 40/6 43/9 44/9 44/ Union 135/ 152/6 150/ 150/ MISCELLANEOUS. Dee. Jan. Feb. Feb. 22. 27. 10, 17, 1932. 1933. 1933. 1933. N.Z. Insurance. 41/ 45/6 *43/9 45/ South British . 54/ 57/6 58/6 58/6 Goldsbrough, M. 21/6 24/6 24/ 23/ Colonial Sugar. 920/ 1040/ 1060/ 1060/ Auckland Gas . 21/ 21/ *20/6 20/9 •Ex dividend. It will be noted that the bank and insurance sections are rated well above the pre-Christmas valuations. Mining Less Busy. There was much less activity in the mining section. This was mainly due in the case of Waihis to transfer restrictions imposed by the banks, as a result of which London buying orders virtually ceased. The scrip consequently eased from £1 2/ to £1 1/8. Another factor which possibly had a general effect on all lines is the Government export duty. Amongst miscellaneous issues Nokomai received special attention and sold on a rising market from 5/9 to 6/2 for the 5/ share. The Nokomai Gold Mining Co. represents a substantial undertaking with a nominal capital of £65,000, which is getting ready for sluicing on a large scale in an auriferous area at Nokomai, near Parawa, Central Otago. Preliminary arrangements are well advanced. Alexanders eased from 14/9 to 14/1, while Golden Dawns, though offered at 3/, | failed to find a purchaser. Miscellaneous. For reasons already indicated, Australian issues had little part in the general business. A single sale of Colonial Sugar and two of Mount Lyells represented the total of the transactions in Commonwealth scrip outside the banking section. In Dominion miscellaneous issues Auckland Gas again appeared in the forefront' with five sales of the ordinary shares at £1 0/9, and one of the contributing at 14/6. Northern Steam and Farmers' Trading had business at what seems like bargain prices compared with the values formerly placed upon the scrip of those concerns.. Pukemiro Collieries improved 1/6 with a sale at £1 4/, and Taupiris were 9d up with a transaction at 12/. Wilsons Cement were steady with fresh sales at £1 9/. Latest Sales. Sales completed since last review have been as follow:— Banks.—New Zealand, £2 4/6, £2 4/1, £2 4/; New Zealand (D Mortgage), £1 9/4%, £1 9/3; Commercial, 14/7, 14/8, 14/7 (21; New South Wales, £2S 17/6; National, £3 11/. Insurance. —New Zealand, £2 5/ (4), £2 5/3 (2); A.P.A., 8/6 (2). Breweries.—New Zealand, £1 7/ (2) I Staples, £1 2/6. Government Issues, Etc.—4% (1938), £96 (8); 4H (1939), £96 (2): 5% (1037. February (ex interest), £98 5/, £98 10/ (4): 5% (1937. September), £101 (3), £100 15/, £101; 5 (1937). £95 10/; 5M (1937), £96 12/6; 5% (1931), £OS. City of Auckland, 5Vi (1949), £94 10/: Auckland 'I'm i> snort Bond, 0% (1919). £93: Auckland Harbour Board, 5/4 (1948), £93. Mining.—Waihi, £1 1/10 '/fe, £1 1/7 , £1 1/8; Nokomai, 5/9, 5/10, 5/10%, 6/2;

\lesander, 14/9, 14/1; Paddy's Point, 5/11; King Solomon, 2/2; Golden Point, 2%d; Okarito, 9/4; Gillespie's Beach, 1/6, Australian. — Colonial Sugar, £53; Mount Lyell, £1 0/1, £1. Dominion. —Auckland Gas, £1 0/9 (5); Auckland Gas (con.), 14/6; Wilsons Cement, £19/ (2) ; Northern Steam, 5/6 (2), 5/3; Northern Steam (con.), 2/ (4); Farmers' Auctioneering, B pref., 12/6 (2); Taupiri Coal, 12/; Farmers' Trading, B pref., 5/6; New Zealand Refrigerating (con.), 3/9; Pukemiro, £1 4/; New Zealand Paper Mills, £1 2/1%. Unlisted.—N.A.T. Motors, 5/; New Zealand Newspapers, £1; Sun ' Newspapers. 3/6; Southern Cross Assurance, 1/3; Williams Rotarjr, 5/.-