THE WEEK REVIEWED.

Auckland Star, Volume LXVI, Issue 230, 28 September 1935, Page 4

THE WEEK REVIEWED.

A WOBBLY MARKET. MANY PRICE FLUCTUATIONS. GOVERNMENT STOCKS LOWER. WOOLWORTHS (SYDNEY) ADVANCE There lias been no improvement 011 the Stock Exchange since last review. The market generally is sluggish and values are irregular. At the same time the underlying tone is quite Wealthy and there is a satisfactory demand at only a slight reduction for the more popular' securities, particularly for those which are domiciled in the Dominion. This exception serves to emphasise the close connection between the Australian and New Zealand'markets. Early in the week there was strong selling pressure from across the "iasman, and this was promptly reflected 011 all the Dominion ! exchanges. Practically all the Commonwealth scrip Regularly dealt with 011 this side was marked down, and the weakness thus disclosed produced all-round nervousness, which had a reaction 011 the whole market. This bear movement did not persist. There was a partial recovery towards the close of the week. At least a part of the losses were regained, and in a few cases, notably Woolworths (Sydney) fresh advances were made. As a result we have a general market tending to weakness, but with 110 call for sacrifice on the part of anyone holding a really good security. With these conditions ruling and the weekly period curtailed by Monday's holiday, it is not surprising that the volume of business has suffered. Banks Fairly Steady.

There was a moderate turnover in the banking section without much change in values, though any alteration favoured buyers. An exception was provided in Reserve Banks, which were a shade firmer with sales at £0 9/3 and more available at that figure. Insurance' Still Dull. The insurance section, so long the most popular on 'Change, was again extremely dull. Only live sales were recorded — Queensland two at 58/ and South British three from 93/ down to 92/. The South British has just closed its financial year and the market is keenly awaiting the board's announcement in the matter of distributions. It is eight years since the last bonus distribution was made, the directors at that time making a bonus issue of 5/ per share, which made the shares fully paid at £1 each. At that time reserves totalled £1,553,G55. At last balancing they were over £2,000,000. To this another year's net income has now to be added and it would not be surprising if the board feels justified in recommending a distribution to shareholders over and above the usual dividend of 1/4 per share, which is paid twice a year. Such action would certainly give to insurance scrip igenerally a much needed fillip. Lacking occasional distributions of this kind, it has certainly been over-priced for some time. Fixed Term Securities. Even Government securities could not escape the bearish elements and the slightly easier Jone noted last week was accentuated. The most notable instance was provided in the long-term issues, which had in recent months been the most highly priced. The 55's showed a definite decline yesterday morning, and at the last call a parcel was transferred at £111 10/, a drop of 17/6 since Wednesday. At the 1 new price this issue should be sound buying, despite the fact that interest rates may be expected to harden. Mining.

After fair activity the previous week I the mining section again relapsed into its [ former dullness. The newly-found zest imparted by the introduction of Fiji scrip | has tapereel off, and the only sale in this | group was one of Emperors at 27/, a drop of 2/6 in 'the week. There was a slight easing in Waihis, which sold first at 36/ and later at 35/9. There is likely to be some hesitancy in dealings in this scrip until it is available in new form representing the two companies, Martha and Wailii Investments, which have sprung from the parent Waihi. Meanwhile, although the original company is in liquidation, the shares are being quoted with all the rights and privileges that are being conveyed to shareholders in the new companies. In the meantime the announcement that shareholders in the Martha Company are to receive a sixpenny dividend on November 15 will be welcomed.

There were marked fluctuations in Mount Morgan shares, which dropped 2/ early in the week, with business at 36/ and later recovered to sales at 37/6. Australian Issues. The chief feature of the Australian miscellaneous group was a fresh accession of strength in Woolworths (Sydney), which jumped from business at £5 3/6 on Wednesday to sales yesterday up to £5 11/6. Broken Hills were quoted ex rights on Thursday and sold at £2 15/, which is rather better than the cum right valuations. Goldsbroughs sold 2/ lower at 29/6. after which the market rested between 28/6 and 29/3. The disastrous fire which occurred in the firm's big wool stores is likely to have an adverse effect on the current year's profits. Even if material loss is fully covered by insurance, the management will be seriously handicapped in having to reorganise its storing arrangements at the beginning of a new wool season. Dominion Securities. There was a steady demand for general Dominion industrials, with late values generally maintained. Auckland Gas shares were steady at last week's level of 25/9. Breweries were in good demand, with sales of New Zealand, Tui and Dominion. N.Z. Newspapers firmed up, and in anticipation of a dividend announcement sold from 40/6 to 41/. Trend of Market. The following table indicates the fluctuations in values of various securities: — BANKS. Dec. 20, Sept. 20, Sept. 27, 1934. 1935. 1935. £ s. d. £ s. d. £ s. d. Aus'asia . 11 5 0 11 10 o 11 10 o Commercial 0 10 4 0 16 0 0 10 4 E.S. and A. . 5 4 0 5 10 0 5 7 0 Nat. (N.Z.) 3 12 0 3 12 G 3 12 0 Xat. (Aus.) 0 2 6 6 10 0 0 12 6 N.S.W. . . 31 5 0 32 7 G 32 5 0 N. Zealand 2 8 11 2 10 9 2 10 6 Union ... S 18 0 0 5 0 9 2 0 Reserve 6 11 G G9 0 69 3 MISCELLANEOUS. £ s. d. £ 8. d. £ 8. d. N.Z. Ince. 380 "3 33 3 33 S. British. 4 10 G 4 13 G 4 12 0 Golds. Mort 199 110G 190 British Tob. 209 1 19 9 1 19 0 Col. Sugar 42 10 0 43 5 0 42 15 0 Auck. Gas 16 0 1 5 10 15 9 N.Z. Brew. 211 0 211 3 211 0 Waihi ... 1 17 9 1 10 9 1 15 9

GOVERNMENT STOCKS. Years. £ s. d. £ s. d. £ s. d. 1937-40 103 10 0 102 0 0 102 0 0 1052-55 108 10 0 112 5 0 111 10 0 1930-52 106 0 0 109 0 0 109 0 0 | Latest Sales. Sales completed since last review have been as follows: — , , Banks. —New Zealand, £2 10/6 (4), £2 10/7, £2 10/6; New South Wales, £32 5/; Commercial, 16/4 (2); Commercial (pref.), £9 9/6; National. £3 12/; Union, £9 2/6; Reserve, £6 9/3 (3). Insurance. —Queensland, £2 18/ (2); South British, £4 13/, £4 12/6, £4 12/. Government Securities, etc. —Bonds: 4 per cent, 1937-40, £102 (2); 1952-55, £112 5/, £112 7/6; Stocks: 4 per. cent, 1937-40, £102; 1952-55, £112 7/6. £111 10/; 3% per cent, 1938-52, £109 2/6, £109; City of Auckland, 4% per cent, 1943, £105 10/ (3); N.Z. Farmers Co-op., 4V2 p.c., 1940-41, £8 6/; Amalgamated Brick, IV2 per cent, 1/3/44, Wellington, £103 10/. Mining.-Waihi, £1 16/, £1 15/9; Grand Junction, 3/10 Vi; Golden Dawn, 2/10 (2); Mataki, 1/10%, 1/10 (2); Mount Morgan, £1 16/, £1 17/6 (2);-Talisman, 9/6; King Solomon, 3/5 (2); Emperor, £17/. Australian. —Goldsbrough, £1 9/6; Woolworths (Sydney), £5 4/, £5 3/6, £5 4/, £5 6/, £5 8/, £5 8/6 (3), £5 10/, £5 11/6,

£5 11/; West Australia, £8 7/6; Colonial Sugar, £43 (2); Broken Hill Proprietary. £3 4/6, £3 3/10%; ex rights, £2 15/; Dunlop, 14/3, 14/6; Mount Lyell, 18/6 (3); Claude Neon (Sydney), £2 10/. Dominion. —Auckland Gas, £1 5/9 (2); i contributing, 19/3; Consolidated Brick, ] 10/0, 10/9, 10/10, 10/9; Farmers' Fertiliser, | 18/0 (2), .18/7 (2); N.Z. Refrigerating I (eont.), 10/2 (3); Tui Brewery, £2 2/6 | (2); Dominion Breweries, 17/; N.Z. Breweries, £2 11/, £2 10/6 (2), £2 11/; Farmers) Trading, 6/10% (2); . Wilsons Cement, £2; .Northern Steam, 6/5; Farmers' Auctioneering (£2 paid) £1 7/, I A prcf. £1 2/6; N.Z. Newspapers, £2 0/0 (2), £2 1/, £2 0/9; K.D.V. Boxes (cont.), 10/3; Mortgage Corporation, 5/10, 5/8; Hill and Plummer, 18/ (2); Southland Meat, £4; Associated Motors (pref.), £1 1/9 (3): Williams' Rotary, 2/ (4).