BROKERS KEPT BUSY.

Auckland Star, 2 September 1933, Page 4

BROKERS KEPT BUSY.

MINE SHARES SOARING. FOLLOW UPWARD GOLD TREND. With gold bringing record prices in the open markets of the world it is not surprising that the scrip of mining enterprises which are regular producers of this valuable metal should become popular with investors. Since last week the price ol gold in London has risen from £6 5/9 to £6 9/7 per ounce, thus justifying the forecast of British economists as quoted in these columns six weeks ago. Values of mining shares on the local market have kept pace with the metal movement, and in several instances new high levels have been created. Waihis, as might have been expected, led the way with sales of the 5/ scrip from £15/ to £1 G/3. Blaekwaters (_£ 1 shares) rose 1/ with a sale at £1 15/9, after which holders promptly raised their limits to £L IS/3, thus choking ofl purchasers. Grand Junctions (2/ shares) were very firm, and sold steadily from 4/ to 4/IH. With Consolidated Gold (4/ shares), as with Blaekwaters, holders took the bit in their teeth and rushed their reserves so high as to preclude business. Buyers advanced from 15/ to 10/0, but sellers stood firm at 18/. Business was not confined to the oldestablished. enterprises. The latest of all, to start in the fascinating work of gold | winning is' the Mataki Gold Dredging Co., which operates at Murchison and sent m its first return on Wednesday. Investors gave the new venture a most encouraging reception and bid freely for the 2/ shares, with the result that the price rose steadily from 1/6 to 2/3. Between these figures there was considerable turnover. The returns from the King Solomon Deep Lead in the Gore district have improved of late, and this was reflected in a higher price for the shares, which sold up to 2/6. Investors went far afield in their anxiety to become part proprietors of mining I ventures. Bulolos, which, with an aerial service to the heart of New Guinea, represent one of the most ambitious enterprises ever undertaken in all the fateful periods of gold mining, came in for attention, and the five-dollar gold scrip changcd hands at £4 14/. The tin fields of Malaya were represented in a sale of Rawangs at 4/9, A Word of Warning. Taken altogether, it was probably the busiest period for mining shares that has existed since the old days when sensational finds at the Thames and other parts of the province put the whole populace in a turmoil of excitement. So long as gold retains its present firmness on the London market this interest is likely to be maintained and to develop further. There arc scores of new enterprises scattered over various parts of the Dominion, each one claiming to be a potential gold winner, and the chairman of the Stock Exchange, Mr. G. C. Creagh. did good service when he publicly warned investors to beware of unsafe, to say nothing of fraudulent, flotations. It cannot be emphasised too strongly that the majority of these new flotations almost surely result in commercial failure. The promoters may find gold, but rarely will it be in sufficient quantity and suiucientl.v accessible as to make its winning i a profitable undertaking. Moreover, m j some cases reasonable prospects have been ' much too heavily discounted in the prices allotted to vendors who were first in the fielfL . . - . .■ No scope of enterprise is so fascinating nor is any so full of pitfalls for the average person as is mining, and any intending investor will be using only ordiuaiy common sense if he consults a reliable sharebroker before parting with cash putting his name on the ' dotted line. Banks Improve. Apart from the special interest shown in the mining section, the week's business should have been very satisfactory to brokers, for the total record of sales was equal to that of the exceptionally busy period which preceded it. Banks, which had been comparatively quiet over the last fortnight, showed some improvement towards the closc of the week, and the aggregate turnover in the section was quite substantial. New Zealands mane the biggest showing on the sales §heet with transactions between £2 8/3 and £2 8/6, and the D Mortgage scrip wasi in regular demand at a shade under £1 13/. There was a firming in Australian issues, and this was exemplified in the ease of Commercials, which started the week at 15/9 and finished up with a sale at 16/1. The announcement published m last night's "Star" that the directors of the Bank of Australasia are paying an interim dividend at the unchanged rate of 7 per cent per annum will be generally wel- | corned. It can properly be accepted as a | mark of confidence on the part or the j board that the full year's results will at ; least justify the maintenance—if not ; increase—of last year'? rate of distribution. j Trend of Market. The trend of the market since last Christmas Eve is shown in the following tab,C: ~ BANKS. Dec. Mar. Aug. Sept. 22, 24, 25, 1, 1932. 1933. 1933. .1933. Australasia .... 180/ 195/ 240/ 242/0 Commercial « 13/6 14/3 10/ll 16/1 E S and A. ... 82/0 80/ 100/0 100/0 National (N. 55.) 65/ 60/ 80/ ®_/(> Nat. (A'sia), con. 100/ 112/<> N. South Wales 520/ 580/ 6n2/6 640/* New Zealand .. 40/0 43/10 48/3 43/0 Union 135/ 146/ 183/ 180/ MISCELLANEOUS. X)pc. Mar. Aug. Sept. 22. 24. 25, 3. 1932. 1933. 1933. 1933. N.JS. Insurance . 41/ 48/ 52/0 52/0 South British .. 54/ 62/9 70/ 72/0 Goldsbrough, M. 21/0 23/ 27/9 29/ Colonial Sugar . 920/ 1085/ 1100/ 1157/6 Auckland Gas .. 21/ 21/1 23/3 23/3 •Ex dividend. Readers will note the marked general advance which has taken place in rccent months. Insurances Firm. - The insurance section was steady and firm. Very little business was put through. Buyers were prepared to give up 1o full late rates, but holders held out for fresh advances. Fixed Term Securities. There was a steady demand for Government bonds and stocks, and any parcels that became available at recent rates were easily disposed of. There-has been a marked falling off of interest in local body securities during the past fortnight, and this may be taken as a reflection of the uncertainty which exists as to the future conditions of some ot' the issues. Whatever the cause, the fact remains that buyers in this section were few, their bids were restricted to less than half a dozen issues, and not a single sale was recorded. Interest Rates. The following tabic shows the return on Government stock to the present purchaser, based on redemption at maturity:— Sale Accrued Return price. interest, p.c.p.a. Stock. £ s. d. £ s. d. A; s. d. 4 (1940) 101 0 0 0 10 3 3 18 0 3J (1938-43) .. 101 0 0 1 12 0 *3 13 0 *Free of income tax up to 1935. Australian Issues. The successful opening of the Sydney wool sales was promptly reflected in increased attention to Australian securities and particularly those concerned with the pastoral industry. Goldsbrough, Morts, whose dividend rate has dropped from 12Viper cent to 2Vz per cent since the slump began, rose 1/6, with sales_ up to £1 9/0, j but this vise was not maintained and a later transaction was at a shilling less. | Dalgetys and the Loan and Mercantile! also shared in the business. Electrolytic Zincs have been viewed more favourably . since, the latest preference dividend w;n announced and there were sales <>• bid i classes of shares. Mount Lyells. Coloui.ii j Sugar, Woolworths (Sydney) and Kaurii Timber all had buriness at ".ate rates. '

Dominion Securities. Among Dominion securities breweries attracted special notice and buyers for New Zealands increased their offers from .S5/ to 37/9. However, no sales resulted, for the simple reason that Christchurch operators, as has frequently been the case in the past with this scrip, set a pace that, Aucklandere refused to follow. Sales were made in the South up to 39/. which was well above local brokers' ideas of value. Staples firmed a little in sympathy and after a sale at £1 5/716, a later purchaser went to £1 0/3 to secure requirements. Tho pastoral section was favourably represented in rales of New Zealand Refrigerating, Farmers' Co-operative Auctioneering. Gear Meat and Farmers' Fertiliser. The first mentioned registered a sharp advance, with sales of tho contributing issue from 7/5 to 8/8. As recently as May these shares were .selling locally at 3/10. Auckland Gas were unchanged at £1 3/3, while Wilsons Cement, sold at £1 14/6, and New Zealand Newspapers, at £1 0/0, both registered small advances. Latest Sales. Sales completed since last review have been as follow: — Banks. — New Zealand, £2 8/3 (2), £2 S/6 (3), £2 8/4'/£; ditto, D Moitgugo, £1 12/9, £1 12/10,. £1 12/10%; Commercial, 15/9, 15/10 13). J.yil 12); 10/1 (2); ditto, pref., £8 14/; New South Wales, £:« 10/, £32 7/0. £32 10/, £32 6/; Union, £'J 3/, £9 4/0. £9 5/; JvS. and A., £5 0/0; National Bank of Australasia (coll.), £(i -I/O. Insurances.—A.P.A., 11/3; New Zealand, £1' 12/0 (-4J. Breweries.—Tooth's, £1 18/3; Staples', £1 5/7 Is, £1 0/3. Government issues.— i (10-10), £100 1,/G, £101 5/, £101; (1910) £100 5/ (2); (IWOj £101 2/0 (2); ()!).">.">; £100 5/ (.3); 3Va (1938-02), £101. Mining, Waihi, £1 5/, £1 5/3, £1 5/0, tl 0/3 (3); Grand Junction, 4/ (.:}), 4/1, 4/, 4/1 (4), 4/IVSs; Mataki, 1/0, 1/8, 1/9, 1/10, 1/11 (2), 2/ (2), 1/10, 1/9 2/ Iβ). o/i 2/2 2/3 (2); Kawang, 4/9; Bell, Hooper, Wd; Okarito, 12/3, 11/10 11/9; King Solomon, 2/5 (2), 2/0 15); Bell, Kilgour 1/4 (2): Blackwater, £1 15/9; Big River, 1/8 (4), 1/7 , /-:; Gillespie's Beacii, 2/3, 2/2% (2); Bulolo, £4 14/. Australian.—Colonial Sugar, £58 (3); Goldsbrough, Mort, £1 8/10, £1 9/4 ] / 2 , £1 9/U £1 8/0; Woolworths (Sydney, second pref), £1 5/0; Mount Lyell, £1 1/8 (2), £1 I/O: Dalgetys, £9 2/3; Loan and Mercantile, £47 10/; Electrolytic Zinc, £L 2/0, £13/; ditto, pref., £1 12/o; Kauri Timber 12/6. Dominion.—Auckland Gas, £1 3/3 14), ditto, con., 17/; Wilsons Cement, £1 14/3, £1 14/0; New Zealand Newspapers, £1 0/4 £1 6/0; New Zealand Refrigerating, con 7/5 8/, 8/8; Renown Collieries (new pref ) 9d; Farmers' Co-operative (l> pref ), 15/; Farmers' Trading, 2/G; Kaiapoi Woollen, 7/10; Wellington Gas, £1 13/7; Devonport Steam, £1; Gear Meat, £i 11/6; Farmers' Fertiliser, 16/. Unlisted.—Farmers' Freezing, 10/0 (Z); Perpetual Forests, £2 6/6; Were's Investment, 4/ (2); Amalgamated Brick and I'ipe debentures, £01 10/. BUSINESS IN THE SOUTH. A BUSY PERIOD. (By Telegraph.—Special to "Star.") CHRISTCHURCH, this day. The "Christchurcu Times" reports as follows: —Excluding mining shares, turnover on 'Change this week was treble that of the preceding period. Dealings covered a much wider range, with marked activity in banks, loan and agency, meat and brewery shares. Prices have firmed in a marked manner. Totals compare as follows: This week, 03,510; last week, 34,415. An analysis of business is as follows, with figures for last week in parentheses: Banks 5877 (2340); insurance, 100; loan and agency, 3850 (400); shipping, 300; meat, 11,783 (1500); woollen, 1500; coal, 100: breweries, 5200 (2625); miscellaneous, 1150 (1100); mining, 33,650 (26.250),