THE WEEK REVIEWED.

Auckland Star, Volume LXV, Issue 285, 1 December 1934, Page 4

THE WEEK REVIEWED.

A LARGE TURNOVER. RESERVE BANKS LOWER, "SUGARS'' NEW VALUATION. After a rather tame beginning, the wee! which ended last night livened up toward: the close, and in the aggregate suppliet a satisfactory turnover. Recorded sale: showed a 20 per cent increase over tin previous week. Values were irregular Though the market as a whole had i healthy tone, there were a number o popular lines wliicli failed to hold recen quotations. Amongst these were Reserve Ban! shares, which had considerable business at £0 10/0, or 9d under the closing valua tion of the previous week. New Zea lands were freely offered, and sold a from 48/3 to 48/0. compared with 49/ tei days ago. Australian Banks, on tin other hand, showed a firming tendency New South Wales gained 5/, with lina business at £32 10/, and Commercial: also hardened a little, with buyers Iron 15/8 to 15/9, while holders stood out foi i(i/. So far as New Zealand business is con eerned, the monthly statement of the trading banks just gazetted indicates ai improvement, for advances stood ai nearly £2,000,000 higher figure: ruling on September 24. This seems ti denote a healthy demand for funds on tin part of firms getting ready for a bus} Christinas. On the other si'de must bi placed the low prices ruling for wool am dairy produce. It seems clear that oui exports will be down several millioi pounds as compared with the 1933-34 sea son. These are vital factors in estimat ing the profits, not only of banks, bu also of the big mercantile firms wliicl play a large part in financing the farmer in the insurance section values wen firm and steady, with the exception o New Zealands, which fluctuated betweer £3 8/3 and £3 9/. finishing up with i sale at the lower figure. Trend of Market. The trend of the market sincc Decembei of 1033 i 6 shown in the following, table: — BANKS.

* Ex rights. Government Stocks. There Ims been a marked weakness in Government Stocks of late, and the extreme figures realised in September am; October have not been obtainable. - An instance of the changing nature of tin market is instanced in 1940 Bonds. These sold on the first of November at £109 After steadily sagging since that date f holder released his scrip on Wednesday for £104. However, this proved to bt bedrock, and a partial recovery was sharply registered with a sale yesterday at £10.5 15/. The 1955's have held their valuation fairly well, and had 'business at £112 15/, but the "40's were almost neglected and the only sale was at £102 7/0. For 3%'s, which had been neglected o late, buyers came in again at lower levels and -although m> business was recorder local sales were recorded in southern ex changes on a new basis. Interest Rates. The following table shows the return oi Government stock to the present,pur chaser, based on redemption at maturity: Sale Accrued Return price. Interest, p.c. p.a. Stock. £ s. d. £ s. (1. £ s. U 4 (J!t4<>) io:; 7 (> i hi :: :: 11 < 4 (1955) .. . li'J ir. o i 11; (i :s n:j ai (1939-13) . IOU 10 0 0 1 1 7 *3 (i - •Free of income tax up to 1939, after which (lie stock lias another live years t<) run with interest for the additional term at i per cent. Mining. The mining section was comparatively dull, business being mainly confined tc the Wailii companies. In the case of the big concern investors were still ready to buy, but there was nothing like so keen a demand as existed ten days ago, when the scrip changed hands only 3d short ol tho £2. Early in the week a* sale was made at 39/3, and later business was at 38/6. Junctions were in good demand between 4/0 and 4/8, finishing up with buyers still in at the higher figure. Blackwaters have not received much attention of late, but the approach of another dividend distribution resulted in buyers coming forward, and sales at 33/4 and 33/6 showed that there lias been little change in values during recent months. In miscellaneous scrip a chief feature was further weakness in Matakis, which dropped back to 2/1. Subsequently a partial recovery was made, with business at 2/3, but tiie market closed quietly between 2/1 and 2/7. An interesting balance-sheet just put out has been that of Golconda Holdings. Not only are the directors able to recommend a final distribution to shareholders of 5 per cent, making 15 per cent for the year, but they state that they have made provision for a similar distribution next year, and they expect to maintain the same rate for a considerable time. The shares, which are 1/ each, are quoted between and 2/. Australian Securities. There was a better demand all round for Australian securities, following the trend in Commonwealth centres. It is conceded in responsible circles that steady improvement continues to mark the internal conditions in Australia, and the investment market is now supporting industries and other local enterprises much more freely. On the Auckland Exchange British Tobacco engaged a good deal of attention and, under steady buying pressure, the shares moved up from £2 1/9 to £2 2/9, the highest figure recorded for a considerable period. Electro-Zinc preferences also rose from 34/G at the beginning of the week to 35/3 at the close, and in the same way Broken Hill Proprietary moved up from 52/ to 53/. Chief interest, however, centred in the change-over of Colonial Sugars from cum rights to ex rights. They were sold cum rights at £77 15/, and ex rights at £40. On this basis those who have kept buying since the directors made their announcement in regard to capital adjustment have been fully justified in the result. The intrinsic value of tho shares is another matter. AS was emphasised in these columns the capital adjustments that were proposed would not of themselves increase the "company's earning powers by one penny. As an Australian Minister stated, "it was like giving the shareholders two ten-shilling notes for £1." Point is lent to this aspect in the latest accounts, which show reduced profits over the last halfyear. However, as the lessened amount is still sufficient to pay the customary 12Vi> per cent dividend and bonus and place £92,000 to reserve, there is little need to worry over the reduction. The directors have announced that they ' expect to make distributions to shareholders under tho new capitalisation in the same proportion as before, which will now mean OV\ per cent instead of 12%. At £40, this gives a return on outlay of 3 1-8 per cent per annum. Dominion Issues. There were some recessions in values of New Zealand industrials, and Auckland Gas shares slipped back a few pence, with business at £1 7/4. New Zealand Breweries also -jyer-e—easier,. and at 40/

showed a drop of 1/3 in the last three weeks. As against these lower prices Wilsons Cement, Devonport Steam, Guar antee Corporation, New Zealand Drug ant New Zealand Refrigerating were all firm, with business well up to late rates. The timber industry received special attentior in sales of Nationals, Taupo Totara and Bartholomews. The accounts of Woolworths, Limited, showing increased profits and a highei rate"of dividend on ordinary shares, i.e., 22% per cent for the year, may be accepted as an indication of healthy trading conditions in the Dominion at the present time. However, buyers who were ottering from £8 to £S 15/ for the £1 scrip a week ago, apparently expected something still more favourable, for they have since withdrawn from the market. Latest Sales. Sales completed since last review have been as follow: — Banks.- New Zealand. £2 8/3 (4), £2 8/0 (0); New Zealand D Mort, £1 13/3; Reserve, £(i 10/0 (7); Australasia, £11 (2); New South Wales, £32 5/, £32 10/' (3); E.S. and A., £5 4/; National, £3 12/0. Insurance. —New Zealand, £3 8/0, £3 !)/, £3 8/0, £3 8/3; A.P.A., 11/ (2), National, £1 1/0 (4); South British, £4 15/. Government Stock, Etc. —Four per cent, 1940, £103 7/0, 1040, £105, £104, £104 15/, £105, £105 15/; 1055, £112 15/. City of Auckland, 1943, 4*4, per cent, £105 10/; Amalgamated Brick, March 1, 1941, TAs per cent, £103 (2); Gisborne Shccpfarmers, 1041, 0V& per cent, £101 10/. Mining.—Waihi, £1 19/3, £1 18/0 (2); Grand Junction, 4/7, 4/0. 4/OVi (2), 4/7 Vi, l/S (.2); Gold Dredging, I'Ad, 7%d; Mataki, 2/1 (2), 2/3; Golden Dawn, 3/ (41; Blackwater, £1 13/4, £1 13/0"; King Solomon, 3/8 (2); Skippers, 7'/:d. Australian. —British Tobacco, £2 1/9 (2), £2 2/, £2. 2/0, £2 2/0; Colonial Sugar, £77 5/, £77 15/, £40 (ex rights) (3); Electrolytic Zinc (pret'.), £1 14/0, £1 10/3; Dunlop, 10/11, 19/10; Broken Hill Proprietary, £2 12/, £2 13/; Kauri, 18/3. Dominion. —Aucklaiid Gas, £1 7/4; contributing, 19/0; N.Z. Breweries, £2 0/; Claude Neon (N.Z.), £2 12/, £2 14/; Traders' Finance (eont.), 3/ (.2); Devonport Steam, £1 4/ (2); Northern Steam, a/8 (3); Farmers' Trading, 7/1; Guarantee Corporation, 5/10 (3); Taupiri Coal, 13/0; Wilsons Cement, £1 14/3; N.Z. Drug, £4 0/0; National Timber, 14/3; N.Z. Refrigerating, £1 0/3; contributing, 9/11; Taupo Totara, 5/ (31; Bartholomew, 14/0 (2); Consolidated Brick, 10/; Abraham and Williams (pref.), £4 7/; Farmers' Auctioneering (A pref.), £1 1/0; B pref., £1 0/9. Unlisted. —Woolworths (W.A.), £5 11/, £5 15/, National Tobacco, £3 10/; Loyal, £1 0/9; Farmers' Freezing, £1; Auckland Trotting Club. 1914, (i'A p.e., £100; Brunner Collieries, 1938, 8 p.c., £80.

4 THE A U C ) FINANCE, COMMERCE AND MARKETS. ™e week reviewed ON 'CHANGE. THE LATEST QUOTATIONS. a LARGE TURNOVER. ax PI ncc B ? KS ~, , Buyers. Sellers. RESERVE BANKS LOWER, STEADY AT CLOSE. »n.k 0 t A-sia u/0/0 .. _ Commercial 10/0 1G/* J • i • Commercial fnref.l m/"" " National N.Z. ...... 3/12/0 " — "SUGARS" NEW VALUATION. COLONIAL SUGARS FIRM. A'sia (coat.) .. O/l/o !. — New South Wales (ex New . . .". 2/S/3 " 32, vl/a After a rather tame.beginning, the weel Bidding at the final call of the week on N.Z. 1J Mort (£1" paid) !! 3/14/0 which ended last night livened up toward; the Auckland Stock Exchange was steady, Reserve Bank N.Z. . 6/10/0 .. 0/10/0 the close, and ill the aggregate suppliet with a healthy tone. INSURANCE— a satisfactory turnover. ltecordccl sales Bank of New Zealands were stable, with Australian Provincial 10/0 .. 31/2 a 20 per cent increase over tlu - Sc "' Zealand — .. 3/S/6 previous week. Values were irregular a sale at £2 8/6, leaving a market between Queensland o, rl , ,, . , , . . ro 8 3 and £2 8/9, but New Zealand south British .!.!;: 4/14/0 !! 4/10/0 " g m:irke t as a wholc Iiatl ;l Insurances seemed weaker, with sellers at " healthy tone, there were a number oi £3 8/6 and no buyers. The insurance FIPJANCIAJ popular lines which failed to hold recent .-section, as a whole, was quiet, the only Abraham Williams pf — 4/10/0 quotations. • inquiry being for Sonth British at £3 14/ Dom. lament ... - .. iy/,i Amongst thesc were Reserve Bauk Colonial v ugars w ere \eiy' , « Kami. Auct. (rJ) — "" l/IO/O s,larcs > which had considerable business buyers moved up to £41, but j, Au( . (£1) ___ _ •* at £6 10/6, or 9d under the closing valua£1 10/ above that. Farm. Auc. (A pref) 1/1/0 .. ' tion of tlie previous week. New ZeaGoveriiment stocks showed little change Farm. Auc. (I! pref) l/O/O .. 1/1/0 lands were freely offered, and sold at from yesterday, and Waihis were quoted (roldsbrougli, Mort. . 1/0/3 .. l/lo/o from 48/3 to 48/6, compared with 49/ ten between £1 17/ and £1 18/6. vyrs 6 t""n 14/0 .. is/6 days ago. Australian Banks, on the (o'rd ) ~/o c/n other halu1 ' - sllmved a filming tendency. SALES COMPLETED. Loall aiufMercantile — 55/0/0 Soutl f Wales gained 5/, with final N. Auck. Farm (B [it) 3/0 .. S/li b,lslnctis at £32 10/, and Commercials Traders' Finance ... !! 0/li !l ' xo hardened a little, with buyers from AT THE 3.15 P.M. CALL YESTERDAY — Trad. Finance. (cont.) — 3/o 1-5/8 to 15/9, while holders stood out for Last Sale. Trad. Finance (pref.) — .. l/J/0 10/. United Build. (Auck) IS/6 .. 3/1/6 So far as New Zealand business is conf s l \ f f ' \Vright, Stephenson . 17/0 .. — cerned, the monthly statement of tlie "f'W S 6 " S 6 ° ' Stephenson pf 19/6 .. trading banks just gazetted indicates an Bank of - . > .. - > _ 0 improvement, for advances stood at Tiornn 14 0.'.' 5 4 0 ,. . nearly £2,000,000 higher figures Tauno Tot'ira '. 0 5 0 .. 0 5 O V ,lloy •••••■•• - ~/0 — H-'O ruling on September 24. This seems to British Tobacco 2 2 6 .. 2 2 ft VenS'XVrd) •" — " 4/6 denotc \ l I'ealthy demand for funds on the Colonial Sugar . 40 0 O .. 40 0 O Renown (nref) — " "'r\ ,lalt 0 ,nns « cUin S ready; for a busy Elect. Zinc (prf) 1 l.j •> .. 1-14 Taupiri .....!..!!!!! 13/0 " " Christmas. On the other side must be Golden I'nwn . 0 3 0 .. O o O 'j'aupiri (pre"/.)"!!!!!." 1/3/0 !! 1/5/0 placed the low prices ruling for wool and Broken Hill i tr. - •• - ■ Wcstport-Stockton .. — .. 3/0 dairy produce. It seems clear that our Bonds. 1040, 4 .. 10.; 1-. o •• ™ u u Westport-Stockton, pf — .. 5/3 exports will be down several million N.Z. Insurance . o & » .. o pounds as compared with the 1933-34 senUNLISTED. Gfls KOn . These are vital factors in estimatRninner -Col. Auckland — .. 1/7/0 iig the jn-ofifs, not only of banks, but jogg § SO O 0 .. — Auckland (cont.) .... .10/0 .. 10/6 ;1 'so of the big mercantile firms which Wool worth (W.A.) 3 15 0 .. 5 11 0 Blrkeuliead-North. .. — .. 16 0 play a large part in financing the farmer. Birkenhead - North- Jn the insurance section values were AT THE 9 30 A.M. CALL TO-DAY — n-u° 1 P'°' P rcf - • •• /'I firm and steady, with the exception of ' / r . - 10 o 5 10 VhilU ° arei — •• loA ' New Zealands, which fluctuated between Dom an Brewe°rics Oil 3 !! O SHIPPING— 8/3 and £3 9/. finishing up with a Woolwortb (Vic.) _ Dcvonport Steam. .. 1/3/0.. 1/4/fi a t the lower figure. P r f • • * o g o "I 2 S (5 Howard Smith — ... i(5/0 Trend of Market. Golden" Dawn !.' O :i o ... 0 j <> xortJ" " ~-/n The trend of the market since December Mt. Lyell 0 1. 0 .. O t< North! Steam! (c'ont'.j 1/4 !! 2/0 f, , 1033 is shmvn in tho following P. and 0 1/0/6 .. 1/2/0 table:- BANKS INTEREST KATES. TIMBER— I Dec. Mar. Nor. Nov. Bartholomew 14/0 .. 15/6 - J - 23. 30. j- Kauri Timber 18/0 .. 18/5 1!'3:>. 1034. 1031. 1034. The return to the investor on his outlay, National (ex div.) .. 13/3 .. 14/6 Australasia . 243/0 262/0 2-5/ 222/6 based upon the latest dividends, works Parker, Lamb 1/0 — Commercial . 17/7 10/11 15/S 15/10 out as follows on the latest sales When Taupo,' Totara 4>0 .. 5/3 V • 112/0 114/6 105/3 104/ Government stocks are includ e WOOLLEN _ Nat!,A'sia!'coii. 130/ 120/ 124/6 123/6 sarwh 0^™ i» K ;lri ...... _ .. Mssfg's -SR. sterlin" exchange is added. In the case of Ivajapoi (cont.) o/O .. 6/0 union 104/ 203/ 177/6 176/ local body, issues allowance ] is ajomade w a cl^0 n'T.!..!!!!! 5/12/6 !! -° /u HeSCl ' VU ~ ~ 131/3 130/6 for 20 per cent interest reduction. Wellington (pref.) .. 5/12/6 .. — MISCELLANEOUS. PER CENT PER ANNUM. j) (; e. Jlnr. Nov. Nov. £ s . d. BREWERIES— 21. 30. 23. 30. Bank of New South Wales .. 3 16 Dora. Breweries 11/0 .. 11/0 .. „ T 1?33. 1034. 1934. 1934. Bank of New Zealand 4 - (> N.Z. Breweries 2/0/0 .. 2/:0/O iT'-V- i 00 * 'iVi K., !!-( New Zealand Insurance .... - IS 0 South British . <7/ <0/0 .hi/o .).>/ Guarantee Corporation 5 14 3 MISCELLANEOUS— Goldsbrou R h, M. 34/0 :Ul/3 30/ 20/0 'Dcvonport Steam * * * British Tobacco .... 2/2/6.. 2/8/3 Sueklamf 1 British Tobacco f 1" « Bvernft _ -vucm.ukiu.is . _»/ -4/J -i/l