THE WEEK REVIEWED.

Auckland Star, Volume LXVI, Issue 170, 20 July 1935, Page 4

THE WEEK REVIEWED.

BUOYANT MARKET,

SUBSTANTIAL TRADING. GOOD ALL-ROUND DEMAND. LATE VALUES HOLD. Recorded sales on 'Change for the week ended last night were scarcely so numerous as for (he previous period, yet they represented a very substantial turnover.

The market, as a whole has a buoyant tone, which is scarcely a matter of surprise in view of the greatly improved economic conditions. The last excuse for nervousness on the part of investors has been removed by the satisfactory result of the meat negotiations, and it would now appear that the chief obstacle to chntinucd progress in this Dominion has been removed, for the time being at all events. It is true that receipts for last season's produce were many millions short of the previous year, but accumulated export credits were more than sufficient to counterbalance this set-back, and prospects for the coming season, both in regard to production and prices, are distinctly good.

There was last week the usual active inquiry in the gilt-edged section. Practically any Government issue can be readily placed at Lite rates, but sellers are scarce and buyers are not prepared to raise their limits sufficiently to stimulate a freer offering. In recorded sales 1955's sold 5/ better at £112, after which the market was firm between £111 15/ and £112 10/. A half-year's interest was paid on the 1940 issue, after which the price was a (.'justed accordingly to about £102.

A comprehensive list of local body securities was available, but regular bidders stipulated for Auckland Harbour Board and Auckland City issues. The former, in particular, are very firmly held. Sales in this class included debentures of Auckland City, Mount Eden Borough Council, Franklin Electric Power Board and Napier Harbour Board.

Banks Aro Firmer. The banking section continues to show a slight but definite improvement, more particularly in the case of Australian institutions. Commercials gamed a penny with final sales at 16/10. while New South Wales moved up 12/6 with a transaction yesterday at £32 2/6. Union, with a sale at £9, and National of Australasia with one at £6 7/6, both registered advances. New Zealands failed to retain the rise of the previous week, and after sales at 52/ and 51/9 there was 110 further business, though holders dropped their limits to 51/6. Reserves, on the other hand, improved 3d, with sales at £6 9/3. Insurances Dull. Insurances have been very irregular over the past month; and for the past week the section was dull with only three sales recorded. This does not necessarily imply lack of faith in insurance shares, but they have been highly priced all this year, and investors may be excused it they have tired of waiting for special increments to justify the low returns obtainable at current valuations. On last week's sales (lie return to the investor in South British has been under 2% per cent per annum, under 3 per cent for New Zealand and 3 3-5 per cent for National.

Waihis Improve. In the mining section moderate business was done in Waihis. which firmed up with sales from 37/(5 to 38/. Junctions, too, improved further with business from 4/ to 4/lbk. Mount Morgans were steady at 37/, and buyers for Blackwaters moved up (id to £1 10/' li without attracting holders to a declaration. The shares of the holding company, Consolidated Gold, were also in request, and an increase in buying limits from 14/ to 14/6 brought an offer to sell at 17/6. Okaritos were fairly close to business between 5/10 and 0/.

Only moderate interest was shown in miscellaneous mining issues, but Matak.'s were fairly active. Values of these fluctuated from 1/10 to 2/. Golden Crowns, though less active, were firmly held. The 2/ scrip sold from 7/9 to 7/11, and the cont. issue, now paid to 1/, at 6/11.

Australian Issues. The week has been a busy one on Australian Exchanges, particularly in Sydney, and this was again reflected in increased local interest in Commonwealth securities. The market for these lias been firm with nil upward trend. Colonial Sugars touched a new high level, with filial sales at £44 12/6. after which holders stood out | for £45. Broken Hill Proprietary, with | a sale at £2 19/6, British Tobacco, witii sales from 39/3 to 39/9, Woolworth's (Sydney). from £4 12/ to £4 12/9. and oolworth's (West Australia), at £7, all testified to the general strength of the market. The altered trend of affairs across the Tasnian is shown in the case of Anthony Hordern and Australian Steel, both of which enterprises had to postpone payment of preference as well as ordinary dividends during the slump. The first mentioned has now cleared up arrears due to preference shareholders, while Iron and Steel has made progress in the same direction. Satisfaction with prospects was shown by local sales of Iron and Steel preference .at 24/6 to 24/8, and of Anthony Hordern's ordinary shares at par. A line not often quoted locally, namely Associated News, sold at 23/9. This concern, which has its headquarters in Sydnew, owns the Sydney "Sun" and other newspapers. It has a paid capital of two and a quarter million pounds. Goldsbrough, Morts firmed up, and after a sale at 29/6 sellers withdrew. Practically the only Australian lines showing weakness were Dunlops, which cased further with a sale at 16/1, and Tooth's, which after business at 55/3 dropped back to 54/9. The latter price, however, is 6/9 above the level ruling in April last.

Dominion Securities. A healthy tone pervaded the sections which include Dominion industrials, farming, financial and general trading institutions. Amongst purely manufacturing concerns Auckland Gas improved sd, with business at 27/8, and Christcliurcli Gas had sales at 36/6. Businesses directly associated with tlie farmers were again well represented in a substantial turnover. New Zealand Refrigerating reached the highest point for some time, with sales of the ordinary shares at 20/6 and of contributing at 9/11. All the issues of Farmers' Auctioneering were in regular demand, and the ordinary £5 shares, fully paid, changed hands at £4 4/, while those paid to £2 realised 24/. Gear Meat improved 3d with a sale at 21/3, and Farmers' Fertilisers realised 20/7. Amongst trading institutions Woolworth's (New Zealand),- which has just reopened in Queen Street in new buildings on the old site, touched a new high level, with a sale of the £1 shares at £12 10/. Trend of Market. The following table indicates the fluctuations in values of various securities: — BANKS. Doc. 20, July 12, July 19, 1934. 1035. 1935. £ s. d. £ s. d. £ s. d. Aus/asia . 11 5 0 10 19 o 11 O 0 Commercial 0 16 4 0 16 O 0 1G 10 E.S. and A. 5 4 0 5 2 6 5 2 6 Nat. (N.Z.) 3 12 6 3 10 0 *3 8 9 Nat. (Aus.) 6 2 6 6 6 0 6 7 6 N.S.W. .. 31 5 0 31 10 0 32 2 6 N. Zealand 2 S 11 2 12 4 2 11 3 Union ... 8 18 0 817 0 9 1 0 Reserve .. 611 6 090 693 MISCELLANEOUS. £ s. d. £ s. d. £ s. d. N.Z. Ins. .3 8 9 3 7 0 3 7 6 S. British. 4 16 6 4 IS 3 4 18 3 Golds. Mort 1 9 9 1 9 6 1 10 0 British Tob. 2 0 9 1 18 9 1 19 9 Col. Sugar 42 10 O 43 15 0 14 12 6 Auck. Gas 1 6 6 1 7 3 1 7 9 N.Z. Brew. 2 11 0 2 14 6 *2 14 0 Wailii ... 1 17 9 1 17 3 1 17 9 GOVERNMENT STOCKS. Years. £ s. d. £ s. d. £ s. d. 1937-40 103 10, 0 104 10 0 *102 0 0 1052-55 108 10 0 111 15 0 112 0 0 1939-52 IUG 0 0 108 5 0 108 0 0 *Ex dividend. ,

Latest Sales. Sales completed since last review have been as follow: — Banks—New Zealand, £2 12/ (2), £2 11/9 (2); Commercial, 16/9, 10/10; New South Wales, £32 (4), £32 2/0; Union, £!); National of Australasia (con.), £0 7/0; National of New Zealand, £3 8/9 (2); Reserve, £0 9/3. Insurances.- —New Zealand. £3 7/9; National, £1 0/10; South British, £4 18/3.

Government, Etc. —Bonds: 4 per cent, 1043-40, £108 ]2/0 (2). Stocks: 4 per cent, 1946-49, £109 10/ (2); 1952-35, £112 (2): 3% per cent, 1938-52, £108 5/. Auckland City Council, 4V4 per cent, 1966, £105, 19(i7, £105; Mount Kden, 4V4 per cent, 1961, £105 10/; Franklin Power Board. 4Vi per cent, 1963, £107; Napier Harbour Board, 1950, 4!4 per cent, £105 10/; Amalgamated Brick. March 1, 1944, 7Vi per cent. (Auckland) £104, (Wellington) £103 15/ (2).

Mining.—Wa ill i, £1 17/0, £1 17/9, £1 18/; Grand Junction, 4/ (4), 4/IV4; Mataki, 1/10, 1/11 (3), 2/ (2). 1/11 (21; Mahakipawa, (id, sd; Maerewhenua, 2d; Kuala lvampar, 12/; Mount Morgan. £1 17/ (3); Skippers. 2V2d; Lawson's Flat, 4 1 /4 d; Big River. 2'2; Golden Crown, 7/9 (2), 7/11. (1/ paid) 0/11. Australian. Etc.- Broken Hill Proprietary, £2 19/6; Electrolytic Zinc, pref., £1 15/; Goldsbrough, Mort, £1 9/ti; Mount Lyell, 19/1; Anthonv llordern, £1; Morris Hedstrom, 21/7; Colonial Sugar, £41 10,/, £44 12/0; Australian Iron, pref., £1 4/0. £1 4/7 (21. £1 4/8; Tooths, £2 15/3, £2 14/9; Dunlop, 16/1; British 'Tobacco, £1 19/3, £1 19/6" £1 19/9; Associated News, £1 3/9; Wool worths (West Australia), £7 (2); Woolworth's (Sydney), £4 12/, £4 12/0, £4 12/9. Dominion. —Auckland Gas, £1 7/8; Hill and I'lunimer, 17/0; Farmers 'I railing, 7/3, 7/2. (B pref.) 14/ti (2); Dominion Investment, 10/ (2), 1(5/6 (4); K.D.V. Boxes. 21/6; New Zealand Newspapers, £1 18/6 (2); Parker. Lamb, 2/; National Timber, 13/9, 14/; San lord. 3/2 (2); Northern Steam. 6/6; New Zealand Breweries, £2 14 8; Consolidated Brick. 10. 0, 10/7, 10/6. 10/7 (3); Farmers' Co-operative Auctioneering (£2 paid), £1 4/, (£5 paid) £4 4/; Guarantee Corporation, 5/11: Gear Meat. £ 1 1/3: New Zealand Drug. £4 2/6. I' 4 33; Whitcoinbe and Tomb*, £4; Woolworth's (New Zealand). £72 10/; Christchureh Gas, £1 16/3 (2); New Zealand Refrigerating. £1 0/6, (con.) 9/11 Ci); Milne and Clioyce. deb. stock, 17/3; Farmers' Fertiliser. 20/7: Taupiri, 16/7; Taupo Totara, 7/6 (2); Kaiapoi (con.). (> 4; Tiniaru Breweries, 9/2; Auckland Meat, ] £ I 4/: Perpetual Forests, £2 8/, (18/1 paid) £2 5/.