THE WEEK REVIEWED.

Auckland Star, Volume LXV, Issue 129, 2 June 1934, Page 4

THE WEEK REVIEWED.

BROKERS STILL BUSY.

VALUES TEHD UPWARD. BANK SHARES NEGLECTED. NEW ZEALAND THE EXCEPTION

Though not so busy as during Hie previous week. Auckland brokers put through a substantial turnover for the period ended last night. The trend of the market was unaltered; that is to say, there was consistent bidding and an unsatisfied demand for favourite stocks. The curious anomaly in regard to-banks

was again noticeable. As a rule, when j the market is running strongly towards I gilt edged securities the banking section I shares to the full any demand that has set in. Yet the last few weeks has seen almost every class of popular security advance in price while banks have been, by comparison, neglected, and any changes in value have been downwards. Judged j on the basis of interest rates as they ruled a few months ago, most bank shares I were then fully priced, but conditions have changed materially, and values that were too high in March may be very reasonable to-day. When one considers the virtually impregnable nature of the security, the improbability of any further curtailment in dividend rates, and the possibility of slight increases, it would seem an opportune time for investors to make a fresh investigation of bank shares. , ,

Bank of New Zealand scrip comes outside the scope of general remarks upon banking, _ for its special position as the leading financial institution of the Dominion entitles it to separate consideration. The 10 per cent rate which it paid last year as dividend is fairly high as rates 30 nowadays, but there is no reason to believe that it will be curtailed. Certainly shareholders have every reason to expect the same dividend at the end of the current term, for increased wool and meat cheques—to say nothing of payment for accommodation rendered to the Govern-' ment —should have substantially improved the profit and loss account. At £2 10/3, |

tile price ruling last week, the scrip was I returning close on 4 per cent on outlay to the latest purchaser. As mentioned in this column, this looked like good buying, and investors came in freely from Monday onwards, with the result that the | price advanced 2/ within a few days. Almost any time now an announcement may be expected that the shares of the Reserve Bank can be transferred and open trading therein permitted. The scrip will open at a substantial premium, for private selling of late has been on the basis- of £6 0/ to £6 7/ for the £5 shares. Some information concerning the policy and immediate operation of the Reserve Bank may be expected shortly, and investors generally will be interested to learn of the probable reactions upon the trading banks now operating in the Dominion.

Insurances have been forced up to still higher levels by the insistent demand of buyers. South British sold at £4 0/6. with more wanted at that figure. New Zealands touched £.'? 4/. but subsequently a transaction was put through at 3d less, leaving sellers still in at the peak price.

, i Government Stocks, Etc. :l There has been no easing in the [inquiry for Government stocks, and recent I gains have been firmly held. Over the i last few days special attention was given Ito 3%"5, but although buyers steadily raised their limits they failed to attract holders. A week ago Stivers for the 1938-43's were offering £104 15/; yesterday they were prepared to give £1 more, but there were no declarations from sellers. - There was a good offering of local body issues, including Auckland Harbour Board and City of Auckland debentures, but holders' reserves were high and littic business resulted. Interest Rates. The following table 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. £ s. d. 4 (1940) ion lit 0 1 10 0 8 5 3 3} (1938-43) . 100 OO 0 15 0 »3 'Free of income tax up to 1938, after which the stock has another five years to run with interest for the additional term at 4 per cent. Mining.

The most notable event of the week in the mining section was the announcement that- the industrial dispute which has brought about a stoppage of work at the Blaekwater and Alexander mines had boon settled so far as the first-mentioned company was concerned, and that an agreement in regard to Alexanders was likely to follow shortly. As a consequence, buyers ramo in for both of these lines, and sales were made in accord with the improved prospects. Waihis had another quiet week, and, with buyers sitting tight on their limits of £1 13/3 to £1 13/0, this popular scrip failed to find a place in the sales sheet. Mahakipawas were again an active line with sales between Cd and IVzd. Australian. In Australian issues, which again received little attention, a notable change was a rise of 1/2 in Goldsbrough Morts, following upon the announcement that the directors are recommending a 6 per cent dividend for the year that has just closed.

Dominion Securities. Continued firmness in the more popular of Dominion issues was again apparent. Auckland Gas led the way with sales at the new high levels of £1 G/10 for the ordinaries and 10/G for the contributing issue. Wilsons Cement also touched a new peak for the 10/ shares with a transaction at £1 9/, and By crofts had fresh business at £2 8/. In the pastoral section Abraham and Williams' preference shares had their first sale for some time, the figure being £4 10/ for the £5 scrip. Farmers' Auctioneering were in keen request for all issues. New Zealand Breweries have been steadily firming up of late, and during the week lvalues rose from £2 3/9 to £2 4/6. I An interesting feature of local dealings , has been the manner in which the market ' responded , to the writing down policy , announced by the directors of the 1 Northern Steamship Co. Before this announcement was made the ordinary 1 14/ C shares were selling at 6/; last week they changed hands first at 7/6 and later at 7/9. Unfortunately, it would appear that the holders of contributing shares have been called upon to make a dispro- { portionate sacrifice in the capital adjust- J ment that has been made. Their shares * formerly paid to 7/, have been written r Btm n^T™ 3/< h Wlth ' th f Collti »(?ent liability J: S r tf, tL , em ' , aud as a consequence tneir value has been assessed in ril™. made as- low- as l/-andTl/6. , |

Latest Sales. ' Sales completed since last review have been as follow:— Banks.—New Zealand. £2 11/0 (2), £2 12/, £2 12/3 (3); New Zealand U Mortgage, £1 15/3 (2), £1 15/4; Australasia, £H 17/0, £11 15/ (2); Commercial, 16/8 (2), 10/7. I I Insurance.—New Zealand. £3 3/0, £3 i 13/!), £3 4/. £3 3/9; South British. £4 0/3 (3), £4 0/0 (3); National, £1 0/7 1

Government Stock, Etc.—4 per cent; 1940, £105 10/ (2); 1940, £106 10/ (2): 1949, £100 10/ (2); 1955, £108 10/. £Hte 7/0, £108 5/. 3% per cent: 1941. £101 10/. Auckland Harbour Board, 0 (1941), £10? 15/; Auckland Transport Board, 5Vi I (19491, £105; Amalgamated Brick, 7% (Wellington). £91. Mining. — Grand Junction. 4/10 (2); Blackwater, £1 14/; King Solomon, 4/, 3/11 (2); Mataki, 2/2 (3). 2/2% (2); IMahakipawa. 7%d (2), 7d, 6d (2), 7d (2), 8(1. 7!kl; Mount Morgan, £1 3/; Bell Kilgour, 4%d; Komata Beefs, 0/3; Goldfields Dredge, lOVad, lOd, £rV£d; Alexander

Mines, 10/, 16/3; Skippers, 1/lVa; Bria'i Born, 1/8; Talisman, 13/9. I Australian.—Colonial Sugar, £05 5/; iGoldsbrougk Mort, £1 12/7, £1 13/9; Mount Lyell, £1 1/0. Dominion.— Auckland G'as, £1 0/10 £1 0/9. £1 0/10; Auckland Gas (con.); 19/0; New Zealand Breweries, £2 3/9. £2 4/3. £2 4/0; Wilsons Cement, £1 9/; Bycrofts, £2 8/ (2); Farmers' Auctioneering (£5), £4; Fanners' Auctioneering, B pref., £1 1/3; North Auckland Farmers, 1/10; Abraham and Williams (pref.), £4 10/; Traders' Finance (7/0 paid), 2/0; New Zealand Drug, £3 17/ (2); Farmers' Trading, 5/4, 5/3; Milne and Ghoyce debenture stock, IS/6 (3); Farmers' Fertiliser. £1 (3), 19/9; Northern Steam, 7/0 (2), 7/9 (3); Northern Steam (con.), 1/, 1/0; Kaiapoi Woollen (con.), 3/2. 3/0; Gear Meat. £1 8/0; New Zealand Refrigerating (con.). S/'GH, 8/7; Grey Valley Collieries, 11/4%; Westport Coal, 17/1%; Westport Stockton, 2/5 (2), 2/5%. 2/0; Grey and Mcnzios, 4/; New Zealand Newspapers, £1 10/3 (3). Unlisted. — Harvey Oil Turbine, £1: Goleonda Holdings, 1/7 (3); New Zealand Woolpaek (IS/), 12/; gilknit, £1 0/0.

BUSINESS IN THE SOUTH. (By Telegraph.—Special to "Star.") . CHRISTCHURC'H, this day. The Christchurch "Times" reports as follow: —Turnover this week has been much heavier than that of the preceding period, the only sections to record a marked decline being banks and breweries. Price movements have been small. I Totals compare as follows: —This week. 87,451; last week, 70.874. An analysis of business is as follows, with last week's | totals in parentheses:—Banks, 1544 (2440); ; loan and agency, 1109 (GOO); shipping, 3SB; meat, 3800 (1500): woollens, 890 (100); coal, 1400 (257); gas, 420 (500): breweries, 250 (1025): miscellaneous, 4344 (2900); mining, 73,150 (01,450).

Trend of Market. The trend of the market since December of 1933 is shown in the following table:— BANKS. Dee. Mar. May June 21, SO, 2.". 1. 1933. . 1034. 1034. 1934. (Australasia ... 243/0 202/6 240/ 23.V Commercial ... 17/7 10/11 J<>/9 Ki/7 B.S. and A. .. 112/0 111/ii 108/ 107/0 Nat. (N.55.) .. 81/ 82/0 83/ 82/ |Xat.. A'sia. con. 13(1/ 120/ 181/ 12770 X. Soiitli Wales 047/0 075/ 042/G 042/0 New Zealand . 48/ 48/3 00/8 52/8 Union 104/ 203/ 1!)!)/ 200/ MISCELLANEOUS. Dec. Mar. May June 21. 30, 25. 1. 1033. 1934. 1934. 1934. N.Z. Insurance. 57/ 58/3 (53/3 (13/9 j South British . 77/ 7(i/0 80/ 80/0 Goldsbrough, M. 34/0 33/3 32/0 33/9 Colonial Sugar. 1270/ 1290/ 130."i/ 1305/ Auckland Gas. 24/ 24/9 20/0 20/9