THE WEEK REVIEWED.

Auckland Star, Volume LXV, Issue 65, 17 March 1934, Page 4

THE WEEK REVIEWED.

BROKERS KEPT BUSY. GOVERNMENT STOCKS FIRM. INSURANCES MOST POPULAR. WAIIIIS MAKE FRESH GAINS. Business on tin; .Auckland Stock Exchange lias been fully satisfactory for tho period which ended last night. Daily turnover has been quite substantial and has covered a wide range of securities, with values generally well maintained. There have been some fluctuations with declines here and there which seem to indicate that the general level of values is unite high enough. Notable instances are .Auckland Gas, which, after rising sharply tii £ I 5/8 last week, dropped! back just as quickly to £i 5/, Colonial Sugars, which mounted to £05 and then dropped 10/, and New Zealand Newspapers, which at £ L 8/0 sold 2/ lower than the price realised last month. On ! i tho other hand, insurances which eased I in values at the beginning of the month have tinned up again, and are now as ileal* las they have ever been. In the banking section New Zealands I ensed further early in the week, and when J the price dropped to £2 8/ there was steady buying over several days. Yesterday fresh weak news developed and the [scrip changed hands at .£2 7/'.). At £2 8/0 the shares looked good buying and at the latest value show a return, based upon a 10 per cent dividend, of 4 1-5 per cent per annum to the present purchaser. Commercial preference shares, which have been gradually firming during recent months, touched a new high level with a sale at nine guineas. These_ are £10 shares and carry 4 per cent dividend. 11l prosperous times, when higher interest rates were general, this scrip was comparatively neglected. When Commercial ordinaries were selling at *£1 10/ the preferences could be bought at £7 10/. During the slump they slipped back to £5 10/. Only in the last 18 months have investors come to realise that a fixed | return of 4 cent from a sound banking institution is quite desirable under the conditions that now prevail. Australian banks generally were in good demand. Unions at £10 0/ made a slight sain, i a remark also applicable to New South Wales, which sold from £34 2/U to £34 5/. The insurance section has apparently regained the popularity which was at its height just before Christmas and early in the New Year. Bidding was quite keen all the week, and under steady buying pressure New Zealands advanced 1/3 in the week with buyers at £2 17/0 and no sellers, while South with a final sale at £3 10/ showed a rise of 1/6. Both Nationals and Standards were I steady, the former with salss between 118/8 and IS/9 and the latter from £3 0/0 I to £3 0/9.' Trend of Market. The trend of the market since December of 1933 is shown in the following table: — BANKS. Dec. Jan. Mar. Mar. '21. 20. 0. 10, 1933. 3031. 1031. 1034. Australasia ... 243/0 252/0 205/ 205/ 'Commercial ... 17/7 18/7 17/1 17/1 K.S. and A. .. 112/0 310/ 111/0 114/0 ' Nat. (N.Z.) .. 81/ 87/0 84/ 84/ Nat.. A'sln. con. !.'!»►/ 132/0 l.K>/ 130/ X. Sonth Wales 047/0 090/ 080/ 08.1/ New Zealand . 48/ 48/ 4S/0 47/9 (Union 19 1/ 202/ 205/ 200/ MISCELLANEOUS. lite. Jan. Mar. Mar. 21. 20. 9. . TO, 193.3. 3931. 1934. 3 934. i N.Z. Insurance 57/ 58/ 50/0 57/fi South British . 77/ 70/0 74/0 70/ Uoldshronsh. Al. .'l4/0 /1i ii:l/ .'{3/0 Colonial Sugar. 1270/ 1300/ 1290/ 1290/ Auckland Gas . 24/ 24/ 25/5 25/ Fixed Term Securities. Government stocks are steadily firming ( up. The movement is slight, but it is definite, and as a consequence the interest ( return f,o the present purchaser is steadily becoming less. Three and a half's in tiie , 1939 issue changed hands at £1 above par, despite the fact that a half year's interest had just been paid, and the new owner will have to wait a full six months before receiving any interest. The 1910 4 per cents, which now carry 13/ accrued interest, sold at £102 5/, so that the present purchaser has to be satisfied witii less than 3% per cent p.a. on his outlay. Most of the popular lines in local body : debentures are still off the market. A , parcel of Auckland Electric Power Board s%'s was available early in the week and was snapped up at £103 5/, but for further offerings purchasers had to spring another £2. Yesterday buyers were still in at the sale price, but sellers had withdrawn. At the higher figure the return to the present purchaser, based upon redemption at maturity, is approximately 4% per cent per annum. This allows for the reduction of interest under the National Expenditure Adjustment Act. Interest Rates. The following table shows the return on Government stock to the present purchaser, based on redemption at I maturity:— Sale Accrued Return price. interest, p.c. p.a. Stock. f s. d. £ s. d. £ s. d. 4 (1940) 102 5 0 0 13 2 3 14 3 3i (1938-43) . 100 15 0 — 0 0 •Free of income tax up to 1038. Mining. In the mining division the most notable happening was a fresh spurt in Waihis, which rose from £1 10/G to £1 11/9, setting up a new high level for the 5/ scrip. A year ago the shares were selling at £1 and seemed dear at that, but the sustained high values of gold have completely altered the outlook for the mining industry and a fresh basis of valuation has bccome necessary. Moreover, the latest report from the mine is of an encouraging nature, with interesting possibilities ahead. Amongst miscellaneous issues the chief feature was an easing in King Solomons, which started the week at 4/0 and finished up with a sale at 4/2. This shows a drop of lOd from the peak price attained last month. Australian. Not much business was recorded in Australian issues. As already noted, Colonial Sugars, after regaining its peak value of £(s<), dropped 10/ later in the week. Morris Hedstroms, with a sale at 16/4V6, showed a drop of 2/9 on the last { transaction. This big firm with extensive { Island connections and headquarters at Suva is well buttressed up financially, but tho slump in the copra industry, which unfortunately_ still persists, is a severe handicap to its trading operations. Dominion Issues. , c There was again a brisk and well-sus-tained demand for Dominion a demand that was by no means confined to j scrip that carries a dividend at the present g time. Even the coal industry, which is beset with no end of difficulties, particularly for those located in the Waikato, lias no lack of support. The sales list * includes the shares of Westport, Westport Stockton, Taupiri and Grey Valley. Auckland Gas ordinary shares started the week at £ 1 5/8, and finished up at £1 5/. Meanwhile the contributing issue eased from 13/9 to 18/4. Evidently the a new levels created last week, which were v much higher than had ruled at any time in recent years, were above the market's | ideas of value. c Latest Sales. Sales completed since last review have j, been as follow: — ( Banks.—New Zealand, £2 8/3, £2 8/ £ (9), £2 7/9, £2 7/6, £2 7/9; Commercial, T 17/1 C 4), pref., £9 9/; National of Aus- i tralasia (eon.), £6 10/ (2); Union, £10 G/; New South Wales, £34 2/0, £34 5/. |j

Insurance.—New Zealand, £2 17/3; South British, £3 14/0, £3 15/ (3), £3 15/0, £3 10/ (2); National, IS/8, 18/9; Standard, £3 0/9, £3 0/0, £3 0/9, £3 0/0. Government Issues, etc. —4 per cents; 1940, £102, £102 5/; 1940, £101 15/, £102 (2); 1955, £102 7/0. 3'/i per cent: 1939-43, £101 (2). .Rural bonds, 1947, .0 p.e., £97; Dissented, 1937, Wi, £98 10/; Auckland Electric Bower Board, 5% (1940), £103 5/, I £105 5/ (2). .Mining.—Wailii, £1 10/G, £1 11/ (2), £1 11/4%, £1 11/G, £ I 11/9 (2); Grand Junction, 4/0; King Solomon, 4/0, 4/5, 4/2; Bell Kilgour, 8d (2); Maerewhenua, 10Va (2); Mataki Gold, 1/0, 1/7 (2), 1/8; Kuala Kampar, 14/0, 14/7; Gillespie s Beach, 2/3; Mining House Concessions, 4d. Dominion. —Auckland Gas, £1 5/8, £1! 5/0, £1 5/2, £1 5/ (2); Auckland Gas (con.), . 18/9, 18/7, 18/0, 18/4; Westport Stockton, I/O; Wilsons Cement, £1 0/3 (2), £1 0/; Westport Coal, 14/8; Farmers' Auctioneering, I! pref, 19/ (3); National Timber, 0/ (2); Bruce Woollen (pref.),, £L 1/1%; Farmers' Trading, A pref., 10/3 12); Canterbury Frozen Meat, £10; I Fanners' Fertiliser, 10/ (2); Northern Roller Mills, £1 12/ (3); Taupiri Coal, 15/, 15/3; Taupiri Coal, pref., £1. 5/; New Zealand Breweries, £2 0/2; Kaiapoi i Wool, 10/, 10/3; Union Oil, £1 8/; Devouport Ferry, £ I 1/; New Zealand I Newspapers, £1 8/0; Grey Valley Col-! lieries, 10/; Woolworths (N.Z.), pref., £1 18/0. __ | Australian, etc. —Colonial Sugar, £65 j (2), £01 10/; Electrolytic Zinc, £1 7/; j Henry Jones. £1 13/0; Kauri Timber, | 17/0; Morris Hedstrom, 16/4%. Unlisted. —Investment Executive Trust, B debentures, second series, £90 (3); ; Farmers' Freezing. 10/9; Skipper's (9d paid), lOd, 10% d, lOd (2), 9d; (1/ paid), 1/2; Perpetual Forests, £2 9/0. BUSINESS IN THE SOUTH. (By Telegraph.—Special to "Star.") CHKISTCTIURCH, this day. The "Christchurch Times" reports as follows: —'turnover on 'Change this week j has been heavy, with more activity in ! insurance, loan and agency, meat, woollen and brewery sections. Prices showed a tendency to ease towards the close, but j the price level is about the same as that ruling a week ago. The totals were: —\ This week, 42,902; last week, 31,537. All analysis of business follows, last week's j totais in parentheses:—Banks, 2832 (2842) ; j insurance, 1050 ( 075); loan and agency,! 2234 (1070); meat, 5125 (1650); woollen, | 925; coal, 300; gas, 100 (500); breweries, 1935 (1100); miscellaneous. 4445 (3200); | mining, 24.100 (20,500). Sales of Govern-! nient issues totalled £6705 (£1300), and; company stock, £ 1300 (£100). I