THE WEEK REVIEWED.

Auckland Star, Volume LXV, Issue 267, 10 November 1934, Page 4

THE WEEK REVIEWED.

MARKET 'LACKS KEENNESS. RESERVE BANKS GO HIGHER. NEW ZEALANDS ALSO UP. Business on the Auckland Stock Exchange was only moderately active during the week which ended last night. Values on the whole have not declined, but a good deal of the keenness that was apparent a few weeks ago seems to have disr.ppenred. Over the latent period there, were not many special features and a turnover (hat should be considered reasonably satisfactory as an average covered a fairly wide range. 11l the banking section tv.e most noticeable feature was the marked preference of investors for Xew Zealand scrip. All of the Australians wore dull and all the Dominion issues were firm. Nationals, which had slipped substantially in the last few months, gained 1/0 with a transaction at 71/0, after which sellers dropped out. Reserves, which have been firming u;> steadily over the last fortnight, continued the upward move, setting up a new high level, with a sale yesterday at ,C(> 12/0. This shows a rise of 3/6 since the first of last month. However, as the scrip still shows 3% per cent on outlay to the present purchaser, it cannot be considered over-priced by comparison with other giltedged issues. As has already been stressed in this column, the Reserve Bank shares would go much higher but for the restriction oil transfers.

New Zealands opened the week steadily at 40/, but a change set in towards the close, and sales were made t'rst at 49/7 and later at 50/. These are the highest figures realised since the final dividend was paid in June. The latest advance is probably due to a pending dividend announcement and it would appear probable that the market anticipates the retention of the 10 per cent rate' of distribution. These hopes may be fulfilled—indeed, probably will—but investors in the shares should be prepared for a possible reduction when the final dividend is made next year. It cannot be expected that the New Zealand Bank will continue to hand out 10 per cent when most of the other banks find it inadvisable to distribute more than 4 to 5 per cent. Points that must not be overlooked are that the bank has lost some of its Government business to the Reserve Bonk, it has lost on its gold reserve holdings and has lately reduced its earning capacity by lowering its charges for advances to customers. Lessened advances and lower rates will not be fully ofl'set by corresponding reductions in the interest payable on deposits.

Insurances have been firm, but quiet. That the recent sharp fall of South British to £4 8/ was not justified is evident. A prompt recovery of 2/ was noted last week, and since then the market has moved up to 91/, at which price a parcel was placed yesterday morning.

Trend of Market. 'L'lio trend of the market since Dccembcr of 1933 its (jliown in tlio following table:—

Fixed Term Securities. In Government Stocks a notable feature was the transfer of a parcel of 3V4's at £109, a drop of £1 10/ since the previous month. For about a fortnight the so-called tiix frees bad been practically off the market, neither buyer nor seller quoting. After the sale there were more offering al £110, from which it would appear that buyers luivc emerged with some advantage from the position of stalemate that had existed. The four per cents had business with no perceptible change in values. Increased interest in local body issues, noted Inst week, was maintained, and as the result of a keen inquiry business was put through in Auckland Citys and Waitemata County. Amalgamated Bricks (7 1 /-! per cent) had further sales at £105, and in the unlisted section Auckland Trotting Club U'/a's also changed hands at that I figure.

A definite preference for fixed term securities seems to be developing, possibly aR an alternative to mortgage investments, which are no longer popular.

Interest Rates. The following table shows the return on Government stock to the present purchaser, based cm redemption at maturity: Sale Accrued Return price. juiciest, p.c. p.a. Stock. £ s. d. £ s. cl. £ s. 'I. ■I (1040) 301 3 5 0 1 5 8 3 a 10 ■t (1050) .... li:; k> 0 1 il: (i :; -i :; 3J (1038-52) . 10i> 0 o 1 13 !> ;; 4 L' *Free of income fax up to TJ3S, after which the stock lias another five years to run with interest fur (lie additional term a I i per cent.

■ Waihis Are Active. Considerable activity in Waihis and Grand Junctions was the outstanding feature of the mining division. The shares of the bigger company were in keen demand all the week, and advanced by easy stages from 37/1 to 37/0, while Junctions moved up from 4/3 to 4/6. Miscellaneous issues were unusually dull, and of about 30 that were quoted daily only half a dozen found a place on the sales list. Of these the most noticeable was Worksop which, following the Christchurch lead, ran up to a sale at 4/, an advance of 1/6 in the month. However, this proved to be something akin to a flash in the pan, for buyers soon dropped out and subsequent offers to sell at '.1/5 failed to bring them back again. The local favourites, Matakis, eased Id, with a sale at 2/7.

Australian Securities. There was a steady demand for the more popular of Australian miscellaneous securities, with late values generally maintained. Colonial Sugars were fairly steady, not far below the peak price that was reached when the latest capitalisation plan was announced. After the dividend .of 25/ had been made a sale took place at £74 IQ/. It is interesting to note that while the market raised the values of Sugar scrip from £68 to a peak price of £80, the acting Premier of New South Wales declares that the directors' proposals "correspond to an exchange of two 10/ notes for a £1 note." Goldsbrough, Morts sold early in the week at 30/3, but then improved with the wool market, and offers of 30/9 failed to bring business. Australian Glass shares moved up 1/9, apparently as the result of an increase in its dividend rate. This concern, which has a paid capital of over £1,000,000, is one of the strongest, and also one of the most enterprising concerns in the Commonwealth. The directors have lately) concluded a business deal by which it has I secured exclusive patent rights in new glass machinery, and this, as well as the dividend increase, has apparently impressed the market across the Tasmau. l < Last year the interim dividend on ordin- ! ary shares was 4 per cent, and the final 5. ' This time the interim is 5 per cent and the investors are naturally looking for at least 10 per cent by the end of the full twelve months. The latest sale at £2 16/3 marks the highest level cached for a considerable period. I

The removal of the stamp duty on Australian transfers that has been imposed over the last couple of years was welcomed by brokers throughout the Dominion. Its imposition wan never justified, and besides the actual additional charges that were involved, it was irritating in its operation and difficult to enforce. Business with Australia, a most important market with Dominion investors, will be facilitated by the clause in the Finance Act which authorises the abolition of the duty. Dominion Issues. I . Amongst New Zealand industrials the most notable advance was made in the case of Auckland Gas, which rose somewhat sharply for a scrip that is usually traded within the close margins. The advance in the week was from 26/9 to 27/0. the latter marking a new high level for the shares. The contributing moved up to business at 10/10. but this did nut constitute a new record, as an isolated .sale was made in September at 21/. The announcement of an increased dividend rale by the directors of Wilsons Cement had evidently been anticipated by the market, as the shares had been very firm in recent weeks. After the notificaI lion was published the scrip rose from 34/ to 34/7. Farmers' Trading at 7/3, and Byerofte at 53/, maintained late values and New Zealand Newspapers set a new high level with a transaction at £3 3/3. Latest Sales.

Sales completed since last review have boon as follows: — Banks.—New Zealand, £2 0/ (3). £2 9/7, £2 10/; Reserve, £<> 11/9, £(i 12/0; Commercial, 16/ (2); New South Wales, £31 17/6; National, £3 11/0.

Insurance-New Zealand, '£3 0/ (2); South British, £4 10/ (2), £4 11/. Government, Etc. —Four per cent, 1010 £104 15/. 1940 £100 (2), 1940 £108 17/0, £109 (2), 1955, £113 10/ (3); 3% per cent. 1938-52, £109. Rural Bonds, 5 per cent, 15/9/47, £103 10 (2); Auckland City, 4Vi per cent. 19R5, £105 (21; Auckland City, 1944-40, £105: Waitcmata County Council, 5% per cent. 1949, £105 10/; Amalgamated Brick (Auckland), Vh per cent, 1941, £105 (2). Mining.—Waihi. £1 17/1. CI. 17/4 (2), £1 J7/5, £1 17/9: Grand Junction, 4/3 (2), 4/4 (2). 4/5. 4/6; Worksop, 4/; Gold Dredge, ll%d (2); Golden Point, l%d; Mataki, 2/7; Brian Born, 1/2; King Solomon. 3/8 (2). Australian, Etc.—Brit ish Tobacco, £2 1/4. £2 1/7: National Mortgage (B), £1 11/; Claude Neon (Sydney), £2 11/; Colonial Sugar. £70 15/, £7G 5/. £74 10/ ex.; Broken Hill Proprietary, £2 in/; Goldsbrough, Mort, £1 11/3; Australian Glass, £2 10/3: Kauri. 19/5. Dominion.--Auckland Gas. £1 7/, £1 7/3, £1 7/6; Auckland Gas (con.), 19/10; Farmers' Trading. 7/3 (2); Farmers' Auctioneering (B pref.). £1 0/0 (21; New Zealand Drug. £4 (3); Wilsons Cement, £1 14/ (2), £1 14/8, £1 14/0. £1 14/7: New Zealand Newspapers. £1 13/3: Guarantee Corporation. 5/5, 5/6, 5/SV&, 5/6; Kenown Colliery (pref.), 2/ (3); Bycroft. £2 13/ (3>; Leyland, O'Brien, £1 2/6; New Zealand Breweries, £2 10/3 (2): Consolidated Brick. 10/9: Kaiapoi (con.). 5/. Unlisted.—Auckland Meat. £1 6/6; Au.-kland Trottinc Club, <>'i per cenr, 1044. £105 (2): Silknit. £1 13/: K.D.V. Box. 12,', 12,'ti; Weie's. 4/10.

BUTTER AND CHEESE

LONDON ADVANCE CHECKED. LATEST FROM TOOLEY STREET. The following cables have been received tins morning by local produce dealers from their principals in Tooley Street, London: Messrs. All. 'ii and Findlay (Messrs. Armour and Company). — Butter: Market steady. Xew Zealand, salted 70/ to 77/, unsalted 76/ to 78/: Australian. 75/ to 77/; Danish. 124/. Cheese: Market quiet. Xew Zealand, white 54/ to 55/, coloured 53/ to 54/; Canadian. 53/. Messrs. A. U. Turnbull and Co. (Messrs. W. Weddel and Co.).—Danish butter, 124/; Xew Zealand salted, 75/ to 77/; Australian, 74/ to 76/; market quieter. Xew Zealand cheese: White. 53/15 to 54/0, coloured 53/ to 53/6; market quieter. Xew Zealand Producers' Co-operative Marketing Assort' ion.—Both market* quiet. Butter: Ncv. .''enlaiid, 74/ to 77/; Danish. 124/. Cheese: While 53/6 to S4/, coloured 53/ to 53/0.

MINIMUM EXPORT PRICES. (By Telegraph.—Press Association.) WELLINGTON, this day. Tlio juices fixed by the Dairy Board fur f.o.b. and c.i.f. sales arc oil the basis of butler B%d. cheese •'• I-Bd, subject to agents' selling commission.

STILL RISING.

BRITISH GOVERNMENT STOCKS. HIGHEST SINCE 1009. (Received 11 a.m.) LONDON, November D. Further advances in the. price of British Government securities took place on the Stock Exchange. Tim War Loan (3Vi per cent) closed at £105 17/0, and Consols (2'/i per cents) at £86 5/—the highest since 1000. Conversions (.'i'/i per cent) rose to £107 13/0, a now high record, and local loans (."■> per cenfs) were quoted at £90 12/6. Tho total amount applied for in tenders for £35.000,000 Treasury bills was £58.255,000. Of tho amount allotted in bills at tlnee months, £32,000,000, the average rate per cent was 5/2.G5, compared with (i/ruiG last week.

OVERSEAS MARKETS

PRICE OF GOLD. (Received 10 a.m.) LONDON", November 9. Gold is quoted at £0 10/7 Vii per ounce. Following is a summary of the fluctuations in the price per ounce of fine gold this year: — £ s. (1.

PRICES OF METALS. LONDON, November S. Following are to-day's quotations on the London metal market, compared with those of November '7: —

LONDON TALLOW STOCKS. (Received 11 a.m.) LONDON, November ft. Tallow statistics at the end of October, compared with previous months, were: — June. July. Aug. Sept. Oct Casks. Casks. Casks. Casks. Casks. Slocks ... 2000 2304 3014 247," 1782 Imports .. 537 018 1546 1018 868 1 Deliveries. 447 5(i3 S'JO 1352 1501

BANKS. I >'*r. Mar. Nov. Nov. 21. ;i0. 2 o, 1033. 1034. 1031. 1034. Australasia .. 243/0 262/0 281 /0 231/0 Couimorria 1 .. 17/7 10/11 10/ l 0/ E.S. and A. .. 112/0 114/0 100/0 102/ Nat. (S.Z.) .. SI/ 82/0 71/ 71/0 Nat., A'sia. con. 130/ 120/ 124/0 124/0 X.S. Wales ... 0T7/G 075/ 635/ 040/ Now Zealand . 48/ 4S/3 40/ 40/7 Union 104/ 203/ 180/0 185/ Reserve •• — — 131/0 132/0 MISCELLANEOUS. Dec. Mar. Nov. Nov. 21. 30. 2 0 1 1033. 1034. 1034. 1031. N.Z. Insurance . 57/ 58/3 00/ 00/ Sontli British . 77/ 70/0 00/ 01/ Goldsbrough. M. 34/0 33/3 31/0 31/ Colonial Sujiar . 1270/ 1200/ 1538/ "1400/ Auckland Gas . 24/ 24/9 20/11 27/0 *Ex dividend.

Highest price, Oct. 3 1.. 7 {{ Lowest price, Jan. 9 . . <i (i Si November fS li 1!) Ill November 5 (i 1!) lij November (> (SI!) Oi November 7 <> 1!) 1J November 8 <i 3!) 2 November !) 0 3 0 7i

Nov. S. Nov. 7. Per ton. Per ton. £ a. (1. £ s. d. Copper, still)., spot 27 0 3 27 11 !0£ Copper, stiin.. 3 nios. 27 11 10J 27 18 1J Copper, electrolytic 30 10 0 » 30 10 0 to to 31 0 0 31 0 0 Copper, elec., wire bars 31 0 0 31 0 0 Loud, soft, spot . . 10 5 0 10 0 O Lead, soft, forward 10 10 0 10 11 3 Spelter, spot .... 12 3 0 12 5 0 Spelter, forward . 12 8 !) 12 10 0 Till, stan., spot . . 228 S 9 22.S 8 0 Tin, stan., 3 nios. 228 17 (i 228 11 3