THE WEEK REVIEWED.

Auckland Star, Volume LXV, Issue 147, 23 June 1934, Page 4

THE WEEK REVIEWED.

BROKERS' QUIET TIME. dull tone on market. REACTION FROM HIGH VALUES. GOVERNMENT STOCK STILL FIRM. Auckland brokers have had their quietest week for a long time. Except for a moderate turnover of business on Monday and again yesterday morning,, it was an unusually dull period, and the investment market was obviously suffering from the weakness which is liable to

develop after many weeks ot rising values. There comes a time when buyers are no longer willing to follow the upward trend, and it depends upon the attitude of sellers whether business falls olf. If, as has happened this week, buyers and sellers stand apart, with a wide range between them, the market experiences a lull as well as an easing in values. In fact, the lull is the main feature.

While values were easing last week, trading was restricted in some directions, but this week it has been slow all round. Perhaps the class of securities which has felt the effects least has been Dominion industrials, due to the steadiness of a

icw leading issues, such as Auckland Cats and Bycrofts. A summary of the sales, however, shows that numerous front-rank securities have met with light trading, and that the easing in values is by no means as pronounced as in the banking section. Weakness Among Banks. The weaker tone of bank shares has been persistent lately, and in the case of Xcw Zealands and Commercials buyers have "been indifferent, dropping back to £2' 7/3 and 15/11 respectively yesterday. The latest sales of Now Zealands at £2 8/, at the close of the week under review, indicate an easing of about 1/0 over seven days. Australian banking issues have been affected in much the same way. both New South Wales and Unions touching lower levels on the Exchanges of the Dominion. It is not clear whether this is due to the temporary overshadowing of banking scrip in Australia by the boom trade in gold shares, but no doubt that is an important factor. Brokers across the Tasman have I been working under heavy pressure, and gilt-edged investments have been pushed for the time into the background while the eagerness to speculate ras run high.

Trend of Market. ; The trend of tlie market since December of JOoo is shown in the following table:— BANKS. Doc. Mar. Juno Juno 21. ;!(>. m, 22, 1933. 1931. 1934. 1934. Australasia ... 243/0 202/0 2-10/ 210/ Commercial ... 17/7 Hi/11 Hi/4 Hi/2 U.S. nurt A. .. 112/0 114/ li !»!»/(> 99/0 Xat. (N.Z.) .. SI/ 82 /(J 80/ 77/0 Xat., A'sia. con. 130/ 129/ 124/0 122/ X. South Wales 047/0 (i7.j/ 028/ 010/ New Zealand . 48/ 48/3 ."0/ 4S/ Union 394/ 203/ 397/0 197/ MISCELLANEOUS. Dec. Mar. Juno June * 21. 30, 1 r>. 22, 3933. 3934. ! 834. 1934. N.Z. Insurance 07/ nB/'3 <12/ 00/ South British . 77/ 7ti/(i 79/ 79/3 Goldsbrough, M. 34/0 33/3 32/ 31/3 Colonial Sugar 1270/ 1290/ 1307/ 180.V Auckland Gas . 24/ 24/9 20/0 20/0 Four Per Cent Stbck Popular. Government stocks have steadied close to the high level they reached at the [ end of last week, and some indications of easing have been noticed, but they have been slight. The most recent evidence is that the demand for 4 per cent stock continues to be keen, and sales are being i made steadily at from £100 12/6 to £106| 17/0 for the 1D46 and 1049 issues. The 'iVs per cent tax-free stocks have not figured in recent business, though tlie demand is still there at £0 10/ above par. 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 (3940) 3Or. 3.". 0 3 34 8 .'! r» 3 3J (1935-43) . 107 0 0 0 19 0 e 3 0 4 •Free of income tax up to 1935. after which the stuck has another live years to run with interest for the additional term | at 4 per cent. ;

Debenture Business. ! Ainonp; loc-'-'il body debentures Auckland Harbour Boards have monopolised what little business hat*, been done. Amalgamated Brick debentures, which have been gathering strength during this month, have confirmed their upward tendency by sales at £94 10/, and there have been more inquiries only 10/ below. Insurances Steadier. Insurance shares call for litvle comment. New Zealands have steadied at £3 and have been traded actively, while Soutn British Jiave recovered a little since the low point of Saturday last, and it appears that they will hold close to the £4 level. Nationals were available during the week at £1, until holders dropped 3d below that price to tempt buyers yesterday, but without bringing a response. Coal and Gas. There has been some activity in coal shares, and Taupirie seem to have found a' firmer level around 13/8. which is not unattractive to buyers. Westport Stocktons have figured regularly in the quotations, but without business resulting. The reference made to the firmness of Auckland Gas shares can bo supported by the regularity of sales at £1 6/6 over the past fortnight, with one movement to a penny above. _ The contributing issue, which were yielding a slightly higher return upon investment, have moved up during the week. Devonport Ferries have not been much in demand since the dividend was paid, and the only sales in the shipping section have been Northern Steam, showing a slight drop, and P. and 0. deferred stock.

Some Gains in Industrials'. Apart from the continued popularity of Bycroft shares among the miscellaneous, the most prominent have been Farmers' Trading and 'Farmers' Fertiliser, both of which have advanced on late values, and continue to be in good demand. The Icrel of 5/0 reached by Farmers' Trading is the result of gradual gains made over recent weeks, beginning with the disclosure of a better trading position in the company's last accounts. The improvement in Farmers' Fertiliser is a reminder that a dividend is due in August, and that the company lias experienced probably a bettor year with increased turnover. A sale of Sanfords during the week for 2/ showed a doubling of the price since a month ago, and was therefore of special interest. I Few Mining Sales. Mining shares have been as quiet on this side of the Tasman during the week as they have been active on the Australian side. There lias been a better inquiry for Waihis, but the only sales recorded show a reduction of 6d. Grand Junctions j have • been rather more active at about i 4/2, and a dozen other sales for the week I have been spread over half a dozen issues, | including Mahakipawas, King Solomons, | Mataltis and Talismans. I

Unlisted Scrip. Among unlisted scrip, Harvey Turbines have not shown much variation in value, Farmers' Freezing have been unchanged, Investment Executive B debentures have had further sales at £94 10/, and Perpetual Forests have been promptly snapped up when available at £2 0/0. Latest offers have been advanced to £2 7/. An unusual sale was of Dominion Laundry shares at 16/, the first for many months.

! Latest Sales. Sales completed since lust review have been: — Banks.—New Zealand, £2 9/6, £2 8/; New Zealand, 1) Mortgage, £1 13/0; Commercial, IG, 2, 16/1%; Commercial, pref., £9 11/0; New South Wales, £30 10/; Union, £9 17/. Insurances.—New Zealand, £3 1/, £3 (5); South British, £3 IS/6, £3 19/3 (2). Government. Etc. —Stock, 4 per cent: 1940. £106; 1946. £160 12/6 (2J, £100 13/; 1949, £106 15/ (2), £105 17/6; 1905, £107. Bonds: 1916, 4 per cent, £106 15/; 1949, 4 | per cent, A) 10(i 17/6; 1955, 4 per cent, | £107. Rural Bonds, o (11)17), £103. Auckland Harbour Board, 5V4 (1959 J, £107 10/'. Mining. — Gillespie's Beach, 1/9%: I Wailii, £1 12/0 (.2); Mahakipawa, lid (5), lOVsd; Nokomai, 3,'; Wailii Grand .Junction, 4/2, 4/1%, 4/2; Mutuki, 2/3; Mining House, sd; Talisman, 11/9; Skippers, 1/; King Solomon. 3/11, 4/ (2). Australian. —P. and O. (deferred stock), £1 0/3; Colonial Sugar, £65 5/; Electrolytic Zinc (pref.), £] 13/0. Dominion.—Dominion Investment, IS/G; Farmers' Co-op. (£2 paid), 10/; Taupiri Coal, 13/3; Wcstport, 17/0: Auckland Gas, £1 6/6 (4): ditto, con.. 16/3, 19/6, 19/5; Northern Steam, 7/; ditto, con., 1/1%-; B.vcroft. £2 8/ (4); New Zealand Farmers' Fertiliser, £1, £1 0/3; Kauri Timber, IG/4; Leyland O'Brien, £1 2/9; Kaiapoi (con.), 3,8: Consolidated Brick, 7/ (2), 7/3; D.I.C. (pref.), £1 5/; Farmers' Trading, 5/5 (2), 5/6 (2); NewZealand Drug, £3 17/6 (2); New Zealand Newspapers, £1 10/: Milne and Choyee debentures. 18/4; New Zealand Paper Mills, £1 10/: New Zealand Refrigerating (con.), 9/3 (3): Robinson Ice, 18/10; Sanford, 2/; Wilsons Cement, £1 8/10; Amalgamated Brick, 7% (Auckland), £94 10/. Unlisted.—lnvestment Executive Trust, second B debentures, £94 10/; Auckland Farmers' Freezing. £1; Dominion Laundry. 16/; Harvey Oil, £1 (2), 19/; New Zealand Perpetual Forests. £2 6/G; Goleonda Holdings, 1/7%; Silknit, £1 0/6. BUSINESS IN THE SOUTH. (By Telegraph.—Special to "Star.") CH I; 1 STCII U h*C 11. this day. The turnover on the Christchurch Exchange during the -week showed little change from that of the previous period. Increased business in the miscellaneous scction offset a reduced turnover in loan and agency and meat company shares. Prices wore easier than those of a wei|v ago. The totals compare as follows:— This week. 6"1,909; last week, 08,801. An analysis of the business is as follows, with last week's figures in parentheses:—Banks. 175!) (1545): insurance, 200 ( 675): loan and agency. 500 (1871); meat. 1600 (2946); woollen. 100 (100); coal. 000 (400); gas, nil (600); breweries. 950 (850); miscellaneous, 3450 (1764); mining, 55,750 (58,050). j