THE WEEK REVIEWED.

Auckland Star, Volume LXIV, Issue 147, 24 June 1933, Page 4

THE WEEK REVIEWED.

AUCKLAND'S BUSY BROKERS.

BIG LIST OF SALES.

BANK SHARES SELL FREELY.

HIGH PRICES FOR INDUSTRIALS

Exceptional activity noted on the Auckland Stock Exchange in recent weeks continues, and turnover is maintained at | unusual volume. Although values generally are still well below the figures ruling a few years back the number of sales recorded averages higher than even in those halcyon days before the slump set m. In some cases the full extent of recent gains has not been maintained, but, speaking generally, the market trend is still upward, a natural consequence of the very considerable buying strength that is apparent at the various calls.

tj Ahe trend of investment has not altered 1 much during the week that lias just closed. ' government stocks have been quietly film. Buyers are not as keen as they weie a month or so back to specialise solely on so-called gilt edges, but are spreading their investments into other channels. In a sense this is a healthy sign. Before the slump sales of Government stocks usually formed a comparatively small portion of the week's turno\ cr, as investors had a wide range of profit-earning securities to choose from with confident expectation of obtaining' a higher rate of dividend than could "be obtained from Government issues. The present movement away from gilt edges to the wider field of financing, industrial, and general trading enterprises is one that is to be heartily commended, although m some cases it is leading investors to pay prices that can scarcely be justified by present conditions or early prospects. In other words, buyers are discounting the future very heavily, and may have to wait a considerable period before they can command a reasonable return on their outlay. Based on latest dividend rates, the return to present investors for general securities is as little as 17a per cent per annum in a few cases, while quite a number range around 4 per cent. Even in these clays of cheap money these must be accounted low rates. Sooner or later mercantile companies may be expected to increase their dividends from the low levels that have been forced upon them, but this desirable change is scarcely likely to eventuate until the Government can see its way to reduce taxation and in other ways remove the obstacles to free and profitable trading. Banks. Bank shares were again the most popular, and bidding was steady all the week for practically all the listed lines. So far as juice changes were concerned, the most noticeable were those recorded by Commercials. The 10/ shares rose steadily from 16/1 to 10/5. which proved to bo peak in the meantime, as a final sale was at 10/4.

During the 'week word came through that the directors of the National Bank of New Zealand were recommending the payment of a final dividend at the rate of 4 per cent for the year. The market was evidently neither surprised nor perturbed that the distribution was so small, for the scrip changed hands subsequently at ail advance. The price, £3 18/, will bring to the purchaser approximately 2% per cent per annum, or, if exchange is allowed for (dividends are tax free and payable in British currency), about 3% per cent per annum. J\ew Zealands were in steady demand all the .week, and firmed up at the close with sales, ex div., at £2 7/6. Trend of Market. The trend of the market since last Christmas Jive is shown in the following table:— >'• HANKS. Dee. Mar. .Tune June 22, 2-1, IG, 23,

1932. 1933. 1933. 3933. Australasia 180/ 195/ 220/ 222/0 Commercial .... 13/0 14/3 JO/1 10/4 E.S. and A. ... 82/0 SO/ 100/ 100/ National (N.Z.) 05/ 00/ 70/G 78/ Nat. (A'sia), con. 105/ 112/0 327/0 327/0 N. South Wales 520/ OSO/ 043/ 040/ Now Zealand .. 40/0 43/10 47/6 47/8 Union 135/ 140/ 172/0 170/0 MISCELLANEOUS. Doc. Mar. June June 22, 24, 10, 23, 1932. 1933. 1933. 1933.

N.Z. Insurance . 41/ 4S/ 49/9 50/ | South British .. 54/ 02/9 OR/ 08/3 Goldsbrougli, M. 21/6 23/ 27/ 20/9 Colonial Sugar . 920/ 1085/ 1300/ 11:27/0 Auckland Gas .. 21/ 21/1 23/3 23/4 A table comprising a comprehensive list of Australian and New Zealand securities compiled by the " Christchurch Times '' shows that from June 8 to June 15 the price level (which was based on July, 1930, as 100) moved from 92.5 to 91.0. A year ago the same chart stood at 09.8, showing that the securities dealt with have advanced over a third in the last 12 months. Insurances in Demand. There has been a brisk demand for insurance scrip, and a substantial turnover was recorded iu the section. Holders I appeared to be keen to sell New Zealands, | but they kept their reserves at £2 10/, and all the sales put through were close to that figure. South British touched a new high mark with a sale at £3 8/6. This proved to be peak, and later sales were at 3d less. Nationals appeared to. be firmly pegged at 17/, this figure being obtained iu a number of transactions throughout the week.

| The distinction of being the highest price scrip in the insurance section goes to the Queensland Insurance Company, a very sound concern which lias made handsome profits during the slump period. This company has paid its usual 10 per cent dividend and lias put aside the customary amount to reserves, namely, £25,000 each year. Eased on the latest sale price, namely, £2 12/9, the investor accepts a return on outlay of just over 3% per cent, compared with approximately 4 per cent for the two big New Zealand companies. Fixes Term Securities. As already indicated, Government stocks showed little change. The 4 per cents had a fair number of sales from £100 5/ to £100 15/, according to maturity dates, while a few parcels of 3%'s changed hands at £99 15/. Local body scrip was not quoted so freely, but buyers were quite ready to accept offers of the more popular jincs. Auckland Harbour, Auckland City, Newmarket Borough Council, and Franklin Power Board all had sales with recent rates fully maintained.

Mining. A chief feature in the mining section was a sharp rise which took place in Alexander shares. These, which are paid to 13/0, changed hands tirst at 13/6 and later at 14/'. This compares with a transaction on Wednesday at 10/1. It is understood that a favourable report from the mine—which has distributed a i'air amount in dividends over the last 12 months—was responsible for this sudden jump. Waihis were quietly firm with sales at £1 2/, and the same remark applies to Blackwaters, which had sales at £1 3/6. Australian Issues. Australian Exchanges were tolerably buoyant all the week, and local values of Commonwealth issues kept up accordingly. Colonial Sugars steadied after the recent casing and sold from £'56 5/ to £50 7/6. Goldsbrough, Morts went still higher with a sale at £1 7/6, but subsequently eased, and the last transaction was at £1 6/7. A measure of returning confidence in the timber industry ' was reflected in an advance in Kauri shares, which sold from 13/ to 13/2, as compared with 11/ last month. Dominion Securities. Dealings in general Dominion securities covered a wide range and, as a rule, any changes were in vendors' favour. Brewcries were in keen demand, and New

Zealands made further gains with sales from £1 13/G to £1 13/11, a rise of 5/ 111 the last month. Staples sold 1/11 better with a transaction at £1 7/2. n -^ uc kland Gas sold freely between £ 1 o/i and £1 3/5, while Wilsons Cement made further gains with a final transaction at £1 12/0. Bycrofts were very firm and at £1 17/ reached their highest point since the dividend was paid. New Zealand Newspapers touched a new high level with sales at £1 0/, and Paper Mills had fresh business at _£l 7/. Devonport Ferries were only slightly disturbed by the latest report that a bridge is to be constructed across the harbour, and the shares sold Od lower at £1.

['• A fresh addition to the official quotaI tion list has been made by the inclusion Jof the scrip of the United Permanent I Building and Investment Society of Auckland. The company's profits and dividends over the last three years have been as follows:—1930, £8499, IVz per cent; 1931, £8303, 7 per cent; 1932, £7789, 0 per cent. The paid capital is £95,405. Latest Sales. Sales completed since last review have been as follow:— Banks.—New Zealand, £2 7/0 (3), £2 7/9, ex div. £2 7/0 (2); New Zealand, D Mortgage, £1 11/; Commercial, 10/1, 10/3 (2), 10/4 (2), 10/3 (2), 10/4 (2), 10/5, 10/4; E. S. and A., £5 (2); New South Wales, £32 1/3 (2), £32; Union, £8 11/, £8 11/0 (2); National of Australasia (con.), £0 7/; National of New Zealand, £3 10/0, £3 18/. Insurances.—New Zealand, £2 9/9, £2 9/lOVj (3), £2 9/10, £2 10/, £2 9/9 (4), £2 10/, £2 9/9; South British, £3 8/0 (2), £3 8/4, £3 £5/3 (2); National, 17/ (5); Queensland, £2 12/0, £2 12/9. Breweries. —New Zealand, £1 13/G, £1 13/9, £1 IS/11; Staples, £1 7/2. Government Issues.—Stock, 4 (1940), £100 15/ (2), £100 5/, £100 10/; (1910) £100 10/; (1955) £100 10/, £100 5/, £100 10/; (1949) £100 5/; 3Ms (1939-52), £99 15/ (3). Bonds, 4 (February 15, 1940), £100 10/.

Local Bodies. — Auckland City, 5Vi (August 1, 1930), £101 5/; Franklin Power Board, 5% (December 1, 1903), £98; Auckland Harbour Board, 5Vi (1939), £101 5/; ditto, o'/i (1937), £101 5/; Newmarket Borough Council, 5% (1940), £101 15/; Auckland Power Board, bVa (1945), £101 10/.

Mining.—Waihi, £1 2/ (5); Waihi Grand J unction, 3/3; Golconda, 9Vid (2), 9d (3), 9Vzd; Blackwater, £1 3/0 (2); Waitahu, 7/3, 7/1 (2); Alexander, 10/1, 13/0, 14/.

Australian.—Goldsbrough, Mort, £1 7/0, £1 0/9, £1 0/7; Colonial Sugar, £50 5/ (2), £50 10/, £50 7/0; British Tobacco, £1 15/; Kauri, 13/, 13/2 (2), 13/; Woolworths (Australian, new pref.), £1 5/0; Mount Lyell, £1 2/3, £1 2/4 (2), £1 2/5; Loan and Mercantile, £38.

Dominion. —Auckland Gas, £1 3/5 (2), £1 3/4 (2), £1 3/5, £1 3/4; Wilsons Cement, £1 12/3 (4), £1 12/0; New Zealand Paper Mills, £1 7/ (4); New Zealand Newspapers, £1 0/ (2); Kcmpthorne, Prosser, £3 4/; New Zealand Refrigerating (con.), 0/2, 0/1 (3); Theatre Arcade (pref.), £1 0/0; Northern Roller Mills, £1 8/; Farmers' Trading, 2/0; Farmers' Fertiliser, 15/8 (2); Bycrolts, £1 17/ (2); Devonport Ferry, £1 0/0, £L (2); Woolworths (.New Zealand, pref J, £1 17/3.

Unlisted.—We re" s Investment Trust, 4/5; Bell, Hooper, 1/1/ i, J/2 (2,1; Claude Xeoii, £1 (j/.

BUSINESS i N THE SOUTH.

(By Telegraph.—Special to "Star.") CHRISTCHURCII, this day. The "Cliri:-'. -hureh Times" reports as follows:—The turnover this week did not equal that of the preceding period, the banking section being the only one to show an Increase. Price movements have not been marked, and, apart from bank issues, dealings have not covered a very wide range, 'lotals compare as follows:— This week, 29,443; last week, 35,849. An analysis of business is as follows, with the figures for the preceding period in parentheses:—Banks, 4452 (3758); insurance, 250 (250) loan and agency, 930 j (3300); meat, 5325 (8576); coal, 100 (300); gas, nil (200); breweries, 700 (1350); mis-1 cellaneous, 1300 (2237); mining, 16,3201 (18-878). I