THE WEEK REVIEWED.

Auckland Star, Volume LXIV, Issue 237, 7 October 1933, Page 4

THE WEEK REVIEWED.

BUSY AFTER EARLY LULL.

s.j FRESH OPTIMISTIC FACTORS. '01 10 '0 BUOYAXT TONE AT CLOSE. '0| '01 *oj After a prolonged spell of unusual '0' activity, trading on the Auckland Stock ,j?: Exchange suddenly eased oft' on Monday of the present week. One broker attributed this comparative lack of interest to the fact that Parliament was sitting.. 'O'and ventured the opinion that so long as I our legislators were in session there would <0 be no return to the busy times which 9 had been experienced in recent months. Plis view, though quite in accord with general opinion "on 'Change," was falsified by results. By Tuesday afternoon buying orders again came to hand steadily, and as the week proceeded '3 business gradually attained substantial dimensions. The causes are not hard to discover. The announcement by the Federal Prime .Minister of important tax remissions was 01 quickly reflected on Australian Exchanges, i Sydney cables advise that the Common- | wealth Budget has engendered a general feeling of optimism with new life and spirit given to commerce and industry. 0 As inevitably happens, the buoyant feeling on Australian Exchanges had prompt reaction in this Dominion. Another important bullish factor has been the definite statement of the British 1} Chancellor of the Exchequer, Mr. Neville 0 Chamberlain, that Britain has " turned l'» the corner " and is well on the way to national prosperity. These factors combincd have, for the moment, at any rate, far outweighed any local uneasiness as to the effects of pending legislation. Bank of New Zealand. An exception is found in tiie attitude of the market towards Bank of New Zealand shares. The statement that the Government is definitely going through with its policy to establish a central bank has created considerable uneasiness in the minds of shareholders. There have been heavy dealings in the scrip each day, and values have fluctuated according to ) changing ideas as to the effects of this legislation upon the bank's business. The scrip started with sales at £2 6/3, rose to £2 8/, dropped again to £2 7/3, and finished up with a final transaction at £2 7/11. Until the full details of the > central bank proposals arc published it ' is not possible to even approximately estimate the effect upon the Bank ot New Zealand. It is clear that the Dominion's

> semi-national banking institution will suffer, but to what extent lias still to be revealed. In any case, shareholders can rest assured that with its valuable trading connection the Bank of New Zealand will continue to take a leading | part in the country's commerce, and will, ' presumably, earn reasonable profits for its . proprietors. That the Government will 'i still find it necessary to accept accommodation from tlie trading banks and. incidentally. must pay for that privilege, can be realised from the latest banking ] returns, which showed the Government to be in debt to the banks on September 30 for £18,000.000 in Treasury bills. Apart from New Zealands. there were no special features in the banking section. There was a strong inquiry all the week for all listed lines. New South Wales I improved its position with business at £34 12/6, and buyers for Queensland Nationals advanced their offers to £5 7/G. Commercials had steady trading between 10/8 and 16/10. Trend of Market. The trend of the market since last Christmas Eve is shown in the following table: — BANKS. Dec. Mar. Sept. Oct. 22, 24, 29, 0, 1032. 1933. 1933. 1933. Australasia ISO/ 195/ 200/ 2<iO/ Commercial .... 13/0 14/3 17/ 10/10 E.S. and A. ... 82/(5 SO/ 120/ 119/ National (N.Z.) o."i/ 06/ 80/ 85/ Nat. (A'sia). con. 10r>/ 112/0 13.1/ 135/ N. South Wales 520/ 580/ (iS2/6 092/<> New Zealand .. 40/0 43/10 40/ 47/11 Union 135/ 140/ 210/ 210/ MISCELLANEOUS. Dec. Mar. Sept. Oct. 22, 24. 29, 0, 1932. 1933. 1933. 1933. N. 55. Insurance . 41/ 48/ 55/ 54/ South British .. 54/ 02/9 74/9 74/3 (Joldsbrough, M. 21/0 23/ 29/ 29/ Colonial Sugar . 920/ 10S5/ 1185/ 1118/ Auckland Gas .. 21/ 21/1 23/7 23/7 Readers will note the marked general advance which has taken place in recent months. Insurances Easier. Indications noted last week of an easing in insurance scrip were confirmed. New Zealands dropped a shilling from the record high price reached last month with a sale at £2 14/3, and a later transaction was at £2 14/. South British lost 6d on its top price, also reached in September, changing hands at £3 14/3. Nationals and Queensland were steady with business at 18/3 and £2 16/G respectively. Breweries Popular. The hope that Parliament may be persuaded to follow the Australian lead and case the tax restrictions on liquor consumption seems to have been reflected in the brewery section. A stronger and more comprehensive demand embracing Australian and Dominion issues was noted. New Zealands gained 9d with a sale at £1 17/9, and afterwards changed hands at £1 18/. Tni shares were asked for regularly at £1 15/. Fixed Term Securities. There was an unsatisfied demand for Government stocks, which evidently are hard to procure. There were buyers for alt listed lines at every call, with only an occasional seller. Any parcels offering at current rates were quickly snapped up. The section finished up decidedly firm. Local body debentures attracted rather more attention than in recent weeks, and business was transacted in the scrip of Auckland Transport Board, Otahului Borough Council, and Franklin Power Board. Interest Rates.

The following table shows the return on Government 6tock to the present purchaser, based on redemption at maturity:— Sale Accrued Iteturn price. interest, p.c. p.a. Stock. £ s. d. £ s. d. £ s. d. 4 (1940) 101 7 G 0 18 2 3 18 4 3i (1938-4S). 100 12 C 0 4 0 "3 8 0 ♦Free of income tax up to 1938. Mining. There was the usual keen interest in the mining section. Waihis eased with the general slackness of trade early in the week and sold lid cheaper at £1 6/1. The market then improved, and yesterday there were buyers at £ 1 6/4. Grand Junctions were steady at 4/6 and 4/5. In the miscellaneous group King Solomons attracted most attention with sales between 3/4 and 3/6. Australian Issues. In a strong Australian section Mount Lyells occupied a leading position with a fair amount of business between £1 4/2 and £1 4/4. The metal industry was also represented in sales of Electrolytic Zinc prefs. at £1 14/3 and of Broken Hill Proprietary at £2 0/6. There were plenty of buyers in the pastoral division, but offers of £10 12/0 for Dalgetys, £75 for Loan and Mercantile preferred, £1 8/10 for Goldsbrougli, Mort, £14/ for River Plate, £2 10/ for National Mortgage A shares, and £1 7/6 for B's all failed to attract holders. Dominion Securities.

Interest in approved Dominion securities was well maintained, and there was a fair turnover in the section on the basis of recent valuations. Wilsons Cement had their first transactions under the new basis of shareholding, namely, 10/ as against the former 20/. The first sale was at £1 4/ and succeeding transactions were at £1 4/3 and £1 4/6. On the old basis the latest valuation was ,£1 15/6.

Latest Sales. (Sales completed since last review have been as follow:— Banks.—-New Zealand, £2 6/3, £2 6/6 (2), £2 6/9, £2 7/6, £2 7/3, £2 7/9, £2 8/ (3), £2 7/9, £2 7/6 (2), £2 7/9 (2), £2 7/11; Commercial, 16/10, 16/8, 16/9 (2), 16/10 (2); E.S. and A., £5 19/; Bank of New South Wales, £34 12/6; Union, £10 10/.

Insurances. —National, 18/3; New Zealand, £2 14/3, £2 14/; Queensland, £2 16/6 (2); South British, £3 14/3.

Breweries. —J. Staples, £1 7/9; New Zealand, £1 17/9, £1 18/.

Government Stocks. —4 per cent: 1940, £101 2/6, £101 7/6, £101 10/, £101 7/6; 1946, £100 12/6, £101 (2); 1949, £102; 1955, £101.

Local Bodies. — Auckland Transport Board, SVA (1949), £99 10/, Otahuhu, 6 (August 15, 1962), £100 10/; Franklin Power Board, 594 U903,, £101.

Mining.—Waihi, £1 6/1. £1 6/3, £1 0/2; Grand Junction, 4/'f» (2), 4/5; King Solomon, 3/3, 3/t. 3/0 (,3),_ 3/4 (.2); Kawarau, 6%d; Mataki, 2/4, 2/5; Okarito, 11/, 10/10; Bell, Hooper, 1/, lOVid; Beii, Kilgour, 1/8, 1/BVis (3); Gillespie's Beacii, 2/3 (2); Ivildare, 2/3V6; Freshford, Od. Coal and Timber.—l'ukemiro, £1 1/.

Australian. —-Mount Lyell, £1 4/3, £1 4/2, £1 4/3, £1 4/4 (2); Broken Hill Proprietary, Ltd., £2 0/6; Burns, Philp, £2 12/; P. and O. deferred stock, £1 4/; Electrolytic Zinc (preference), 14/3; Colonial Sugar, £59. Dominion Securities. —Dominion Investment and Banking, 17/; Guarantee Corporate, 8/3. 8/1; Auckland Gas, £1 3/* J /2 (3); Consolidated Brick, 5/10, 5/9; New Zealand Newspapers, £1 7/6; Farmers' Trading, 3/4; ditto (B preference), r 8/6 (2); Farmers' Fertiliser, 16/ (2); New Zealand Refrigerating, 19/10 ditto (contributing), 9/8, 9/7 (3J New Zealand Paper Mills, £1 8/; Bycroft, £1 19/ (2); Wilsons Cement, £1 4/1, £1 4/3, £1 4/0; Northern Steam (contributing), 2/. Unlisted. — Maraewhenua, llVad, 1/'; National Tobacco, £3 3/6; Snowy River, 4%d (2); Amalgamated Brick debentures, £92; Farmers' Freezing, 15/6. BUSINESS IN THE SOUTH.

(By Telegraph.—Special to " Star.") CHRISTCHURCH, this day. The "Christchurch Times" reports as follows:—Dealings 011 'Change this week have covered a fairly wide range, the most marked increase being in brewery shares, most of which have hardened. Prices indicate a slight easing in banks, but loan and agency shares are firm, and also leading Australian industrials. Figures compare as follows: —This week, 54,020; last week, 37,577. All analysis of business is as follows, the totals for last week being in parentheses:—Banks, 2456 (3382); insurance, 100 (200); loan and agency, 1520 (3514); meat, 3700 (5100); woollens, 400 (500); coal, 400; gas, 100; breweries. 2519 (1000); miscellaneous, 2125 (3206); mining, 40,700 (20,675).