THE WEEK REVIEWED.

Auckland Star, Volume LXVII, Issue 181, 1 August 1936, Page 4

THE WEEK REVIEWED.

MARKET'S SWING OVER. AUSTRALIAN TO DOMINION. GILT EDGES IX HIDIXG.

The most notable feature of the business on the local Stock Exchange for the weekly period ended last night was the transference of investors' attention from Australian to Xew Zealand securities. For some time the scrip of enterprises with headquarters in the Commonwealth have held a dominating position on Xew Zealand exchanges, and local buyers' keenness has been a factor in the steady advance in prices of leading Australian industrials. The movement became so pronounced that concern was expressed in some quarters at the alleged transfer of large sums of money from Xew Zealand across the Tasnian. An effort was made to give the matter political significance, but? the Prime Minister refused to consider it as one of serious import. And now, for no particular reason that can be discerned, the pendulum has suddenly swung in the other direction. For the week just closed there were considerably more sales of Xew Zealand miscellaneous issues than of Australian, a position that had not occurred for several months.

A definite weakening in most of the leading Australian securities has been evident during the last 10 days, apparently a natural reaction to the steady forcing up of values in recent months. T&s easing was promptly reflected on local exchanges, and Xew Zealand investors reduced their limits accordingly.

Of tho big list of Australian issues that are regularly quoted only one sold at a higher price, namely, Goklsbroughs, which gained 10M.>cl, with a sale at £1 11/10%. Glass shares, which sold up to £4 13/9 last month, slipped further, with sales from £4 10/9 to £4 9/6, and Broken Hills, which touched peak at £3 16/6 a fortnight ago came back to £3 12/6. G. J. Coles changed hands ex dir. at £3 16/, which compares with a peak price of £4 7/, cum dir., on July 2. Woolworths (Sydney), which had been neglected of late, received fresh attention, but it was a buyers' market and sale prices steadily declined from £5 14/0 to £5 10/. Banks are Dull. Bank shares were again extremely dull. There was very little interest in the market, and buyers kept their limits well down. New Zealands showed signs of recovery early in the week, but tho references in Parliament to the Government's policy were again productive of fresh uneasiness, and the price slipped back to 40/3. Commercials lost tho gains of the previous week, selling 4d lower at 18/5. Insurances. Insurances liad a poor week, and the limited business put through was all at the expense of vendors. Even the release of a typical statement of accounts by the directors of tho New Zealand Company— a statement showing a thoroughly successful year, unchanged dividend and augmented reserves —failed to impress the market, which promptly wrote the shares down by 3/ to sales at £3 2/. South British sold 9d lower at £4 11/3, and Nationals were a penny down at 18/6. There are regular bids at the lower levels, but it is obvious that, as with the banks, buyers are expecting further concessions. Fixed Term Securities. There is practically a stalemate in fixed term securities, and it is clear that, in a clouded outlook, investors are pinning their faith mainly to Government stocks and the scrip of local bodies with headquarters in Auckland. The last Government, in its endeavour to ensure lower rates of interest in tho Dominion instituted what was practically a compulsory conversion scheme, but the market evidently holds the view that in the last resort Government issues are still the most impregnable against legislative interference. Whatever the cause, the fact stands out that holders will not place their stocks on the market, and the unusual position occurred at many calls that there were buyers for a long list of Government securities with not a single seller. Mortgage Corporation and rural bonds were available, but none of the issues that usually are regularly traded. Mining. There was regular bidding in the mining section for a good number of issues, but not a great deal of business resulted. A feature was further weakness in King Solomons. Returns from this Southland enterprise have been disappointing in recent months, and the market has written the shares down drastically. Over the latest period sales were from 1/6 to 1/2, the lowest level accepted for the scrip for many years. In June of last year these shares were selling at 4/. Amongst local issues Golden Dawn slipped further, with business at 3/, and Golden Crowns had a sale at 5/6, a further drop of Gd. Of the bigger concerns Grand Junctions were practically unchanged at 3/G'A, while Mount Morgans started the week well with sales at 14/8 and 14/9, but later eased to 14/5. Dominion Securities. As already stated, there was more business in miscellaneous Dominion securities than in recent weeks, but there was no added strength in the market. Rather more issues were asked for, but there was no noticeable tendency for buyers to raise their limits. Generally speaking, the market was steady, with most changes favouring buyers. Tho brewery section waS quite active, but holders had to make concessions. Dominions came back with business at 27/ and New Zealands were lower at £2 13/3. Farming interests were well represented in sales of Farmers' Auctioneering, Wright, Stephenson, V—th A'lek'nnd Kin" fall preference shares) and Farmers' Freezing. Farmers' Trading shares eased a few pence, with sales of the ordinary from 19/7 to 19/5, the B preferences changing hands at 21/3. Sanford shares were firm all the week, with buyers for the ordinary up to 4/1, and for the preferences at 17/6. The report that the company is in an improved position was confirmed yesterday, when the directors met an informal gathering of preference shareholders, with a view to arriving at a compromise regard in 2 arrears of dividend. The chairman of the board made it clear that the company would be able to make a payment to preference shareholders if a reasonable arrangement could be negotiated. To this end another meeting is to be called, but in tho meantime it would appear'that the preference shareholders will'be invited to accept 3/ per share in lieu of the 6/ which, under ordinary circumstances, would be due.

Trend of Market. The following table indicates the fluctuations in values of v various securities: — BANKS. Dec. 13, July 24, July 31, 1935. 1936. 1930. £ s. d. £ s. d. £ s. d. Aus'asia .-11 7 0 11 IS 0 11 17 0 Commercial 0 17 10 0 18 0 0 18 5 E.S. and A. 5 9 6 6 3 0 6 3 0 Nat., N.Z. 3 12 0 350 3 4 9 Nat.. Aus. 0190 720 720 N.S.W. . . 32 r> 0 32 15 0 32 17 6 N. Zealand 27 10 206 203 Union ... 9 11 0 9SO 980 MISCELLANEOUS. £ s. d. £ s. d. £ s. d. N.Z. Insur. 3 3 3 3 4 9 3 2 0 S. British 4 12 0 4 12 0 4 11 3 Golds., M. 11l 0 1 11 0 1 11 10 British Tob. 200 210 209 Col. Susar 42 10 0 43 7 6 43 5 0 Auck. Gas 109 1 5 7 156 N.Z. Brew. 2 14 3 2 13 9 2 13 3 GOVERNMENT STOCK. £ s. d. £ s. d. £ s. d. 1937-40 102 7 6 101 2 6 101 5 0 1952-55 107 10 0 105 2 0 105 2 (i 1939-52 102 J 0 0 102 17 6 102 17 6*

Latest Sales. Sales since last review have been as follow: — . Banks. —New Zealand, £2 0/8, £2 1/, £2 0/9, £2 0/10 (2), £2 0/3; National, £3 5/ (4); Australasia, £11 17/6, £H 17/;' Commercial, 18/5, (pref.) £9 5/• Insurances.- —National, 18/0 (3); New Zealand, £3 2/ (4); South British, £4 Australian, Etc. —Australian Glass, £4 10/9 (2), £4 11/3, £4 10/9, £4 10/6, £4 10/3, £4 9/0; Anthony Hordern, lb/9; Goldsbrough, Molt, £1 11/10 Ms; British Tobacco, £2 0/9 (2); Broken Hill, £3 13/3, £3 13/0, £3 14/3, £3 13/9, £3 13/3 (2), £3 12/0; Dunlop, 18/8 (2); Electrolytic Zinc, (pref.) £2 3/9, £2 3/5; G. J. Coles, (ex div.) £3 IS/3, £3 10/ (2), 1 Kauri, £1 4/, £1 4/4, £1 4/6; Mort s J Jock. 11/7 (4), 11/4; Henry Jones, £2 3/3; P. and 0., (def. stock) £1 9/9; feelf ridge's (Australasia), £1 4/6; '.tooths Brewery, £2 12/9; Woohvorths £5 14/0, £5 14/, £5 12/, £5 10/0, £5 ! 10/, (second preference) £1 0/4. Mining.—Golden Dawn, 3/ Golden Clown. 5/6; King Solomon, 1/6, 1/5%, 1/3 (2). 1/2; Mount Morgan, 14/8 (121, 14/9 (2), 14/0, 14/5; Skippers, 4d (3), 3%d; Grand Junction, S/G'/a; Waimumu Sluicing, lOVkl (2). Government, Etc.—Stock, 1937-40, 4 per cent, £101 5/; stock, 1946-49, 4 per cent, £105. 1952-55 £105 2/6; Mount Eden Borough Council, April 1, 1949-54, £105 ' 10/; Mount Albert. July 1, 1963, £104 10/. Dominion. —Auckland Gas, £1 5/0 (3), (con.) 18/6; Beaths, £1 4/6; Consolidated Brick, 9/6 (4); Farmers' Auctioneering (B pref.), £1 2/, (£5) £4 5/; Farmers' Trading, 19/7, 19/6, 19/4, 10/5, (B pref.) £1 1/3; Dominion Breweries, £1 7/; Macky, Logan, £1 (2); Northern Steam. 5/9, (con.) 1/3; North Auckland Farmers' (B pref.) 14/; Kaiapoi, 14/9, (con.) 6/; New Zealand Newspapers, £2 0/6 (3), £2 0/3: Newton King, (pref.) 7/; New Zealand Breweries, £2 13/3 £2); Robinson's Tco, £1 2/ (2); Auckland Farmers' Freezing, (£1) £1 3/: Taupo Timber, (pref., 16/ paid) 14/6 (3). (old.) 10/9; Wilsons Cement, £2, £1 19/9; Woohvorths (New Zealand), £5 11/6, (pref.) £1 16/10, £1 16/9; Traders' Finance, (con.) 4/ (3); Westport-Stnekton. 1/6: Wright, Stephenson, (pref.) 1.8/6; New Zealand Wooipack, 4/3; Shillings, (12/6 paid) 16/ (2).