THE WEEK REVIEWED.

Auckland Star, Volume LXVII, Issue 205, 29 August 1936, Page 4

THE WEEK REVIEWED.

ONLY MODERATE BUSINESS. A HESITANT MARKET INDUSTRIALS IRREGULAR. GOVERNMENT STOCKS PREFERRED Since last review turnover on the Aucks land Stock Exchange has been only j moderate. There is a steady demand, but, „ except in isolated instances, there is little 1 zest in the bidding. Australian issues, - which up to a few weeks ago were the 1 subject of keen speculation, seem to have - become comparatively stable, while local - industrials are still ieeliug the effects of ;, political reactions. f Statistically there is 110 sound justifica--1 tion for this comparative dullness 011 the ' Stock Exchange. There are ample funds ' m the country to support normal trading. 1 The trading banks' return, jmblished yesterday, showed that deposits amount to " close 011 £66,000,000, while the Govern- • meat Savings Bank records total credits ' to its depositors of nearly £53,000,000. ! There is nothing on the horizon to seri--2 ously damage this sound financial outlook, for everything points to a bountiful sea- | son, so far as production is concerned, and I the marketing prospects have not been ' better in recent years. However, there has been a tightening ' up of purse strings in the last few weeks, for the reason that investors throughout the country are anxious to see the effects of the latest legislation on the profit- , earning capacity of the scrip they would ordinarily fancy before making a definite , commitment. Until this anxiety is allayed there will not be the free dealing in the investment market that the general , condition of the country warrants. > Meanwhile there is a strong preference for Government stocks and other forms of fixed term securities —a trend that is usually found 011 a nervous market. For several weeks holders were virtually off the market, but in the last fortnight there have been a fair number of offerings, and these have been quickly snapped up at firm prices. Values have not been greatly affected, though any changes have usually favoured the vendor. However, this has not been an invariable rule, and the 1955'5, which sold at £105 12/6 on Monday, showed a drop of 5/. Local body stocks were also popular, and a parcel of 4% per cent Auckland Harbour Board debentures, interest on which had been paid last month, realised £8 above par. This was a long term issue, tlie maturing date being 1957, and the return to the purchaser, based on redemption, is approximately £3 14/ percent per annum. Amongst trading issues Amalgamated Bricks held the recent advance, with fresh business at £102. Banks Still Quiet. Only moderate interest was shown in the banking section. Most Australian issues could have been placed at a slight concession, but holders were firm and very little business was recorded. Commercials were fairly steady at the higher level recorded the previous week, and Unions gained 2/, with filial business at £9 9/6. New South Wales were slightly firmer, with buyers at £32 12/6 and 110 sellers. New Zealands are still under a political cloud. The confidence of the market has been shaken, not in regard to the soundness of the country's leading financial institution, but as to the degree in which its capacity to earn dividends may be affected by legislation already passed or in prospect. As a consequence the shares, which carried 10 per cent dividend last year, are valued by the market at under £2. There was a slight firming movement in the middle of the week, and a parcel was placed at 40/, but the partial recovery was only temporary, and later offers to sell at 39/9 failed to bring business. Insurances. The insurance section was steady and virtually unchanged. New Zealands sold between £3 2/6 and £3 2/3, South British at 90/, and Nationals at 18/4. Waihis Improve. In the mining section chief interest centred around the Waihi trio, each of which showed a firming tendency. Marthas sold up to 18/3, a rise of 6d, but later offers of 18/7 failed to bring transfers, sellers having dropped out. Meanwhile Waihi Investments sold at 10/8 and 10/9, compared with 10/ last week and 9/5 last month, while Grand Junctions Were firm with a market between 3/6 and 3/8. Simultaneously Mount Morgans, following an Australian lead, showed a sharp decline, selling down to 12/6, as compared with 14/ the previous week. Blackwaters improved 3d, with business at 33/9. There was a fair iinarket for Gillespie's Beach, which sold 2d higher at 1/4, but Golden Dawns slipped back further, with business at 2/9. Australian Issues. There was a regular market for a wide range of Australian securities, and although fluctuations were frequent variations were less pronounced than was the ease a few weeks ago. Broken Hills were quieter and sold on Tuesday at 73/11, but firmed up at the close of the week, with a sale at 74/9. Colonial Sugars and Australian Glass were steady at about late rates. Mort's Dock had regular business between 10/2 and 10/6. The announcement of Coles, new issue, at 40/ per £1 share to present shareholders had little effect on the market. The scrip temporarily eased to 79/, but later recovered to 80/6. Mount Lyells are still benefiting from the rise in the London price of copper, and the shares sold between 29/6 and' 29/3, which compares with 27/ early in the month. With the promise of a favourable opening to the Australian wool season next week, Goldsbrouglis firmed up, with buyers if: 31/6, but lowest sellers asked 32/3. The re-entry of Dunlops into the dividend-paying class was anticipated and there was little change in values, the shares selling between 18/4 and 18/2. A London movement lias had the effect of bringing about a sharp advance in P. and O. shares, and the scrip changed hands at 32/, an advance of 6/3 since June. Apparently this must be attributed to the general improvement in British industrial conditions, which is being shared by the shipping industry. Dominion Securities. There was a moderate turnover ill Dominion industrials and considerable irregularity in prices. Some of the lines that are usually the best sellers have been comparatively neglected, while a few have appreciated, and others are practically unchanged. A notable instance in this connection is Wilsons Cement, which were on offer at 37/6, with best buyers stopping at 35/. Early in the month they sold at 39/9, but in the interim a Ministerial statement has been made in Wellington that a further consideration of cement prices is to be made by the Government. It is generally considered that this powerful and well-managed company can withstand any investigation and any competition, but investors are timid; hence the fall. Another popular line is Auckland Gas, which have slipped back to 23/3, the lowest figure accepted for a considerable period. At this time last year these shares were selling at 25/6. A Christchurch movement brought about local reactions in the case of Kaiapoi Woollens, and the ordinary shares 6old from 15/4% ' to 15/11, while the contributing issue realised 6/4 and 6/3. Dominion Breweries. Amongst the strongest issues on the market were the shares of Dominion Breweries. The new capital offering of £1 shares to present holders for £1 2/6 has had an excellent reception, and the rights, which opened with buyers at 2/6, have sold at 5/9 to 6/. Meanwhile the ordinary shares have sold ex rights at 29/9. Thus a share held at the first of the month, when the market value was £1 6/9, could be sold to-day for 31/9; a 5/ rise. New Zealand Breweries sold unchanged j at 52/, but later in the week buyers at ' 6d higher were unable to secure supplies.

1 'Annual Reports. • During the week a number of companies lield their annual meetings, or Prf sel1 *® their yearly reports. ' "Wright, Steele . son and Company, a purely .Dominio 'concern, with a capitalisation of £550, and debenture issues totalling ±.640,000, which is employed chiefly in the financing! of farmers, showed net profits loi _ months —an extended term —oi £40,0UU, and its dividend rate for ordinary shares is 5% per cent per annum, compared wiui 4 per cent last year, and 3 per cent tne ) year before. , , , „ _ , The directors of the Auckland Farmers Freezing Company, a co-operative entei- ' prise, which handles the whole of tilt > dairy produce exported from the Auckland j Province and a big share of the meat exports, issued a report which show ea ' further expansion and fresh records in " output. The usual 6 per cent dividend JI is to be paid and reserves have been f! further strengthened. . I From the same building was issued tlie report of Renown Collieries Company, " which lias made a striking recovery in the 2 last, two years. Profits were over ±3000 5 higher at £11,000, and the ordinary dm- ■ dend rate is being increased from to " lOd a share, or about 7 per cent, while J the liquid position has improved substan- " tially, the cash credit balance slio\\ ing £10,700, as compared with £7400 at the close of the previous 12 months. A smaller, but thoroughly sound concern, Grey and Menzies, Limited, held its annual meeting and the chairman, in expressing confidence in the iuture prob--1 pects, indicated that building extensions had been decided upon. ' Sanford's "Prefs." ■ The preference shares of Sanford, Ltd., • came up for consideration at a meeting . of holders yesterday afternoon, when a L resolution was carried by a substantial > majority agreeing to accept 3/ a share in S full settlement of the 6/ due as arrears r of dividends. The meeting carried unanii mously a resolution congratulating the directors and the management upon the success of their efforts in restoring the • company to a sound position, s Trend of Market. The following table indicates the ! fluctuations in values of various ■ securities: — 1 Dec. 13, Aug. 21, Aug. 28, : 1935. 103(3. 1030. r £ s. d. £ s. d. £ s. d. ■ Aus'asla .11 7 0 11 18 0 11 18 0 ■ Commercial 017 10 018 6 018 6 I E.S. and A. 5 9 6 0 16 6 0 0 ' Nat., N.Z. 31- 0 3 2 6-3-0 ' Nat., Aus. 6 19- 0 7 2 0 7 - 0 N.S.W. . . 32 5 0 32 12 6 o2 li) 0 N. Zealand 2 710 119 6 1 1 ; Union ... 911 0 970 996 i MISCELLANEOUS. I £ s. d. £ s. d. £ s. d. i N.Z. Insur. 3 33 320 ? 2 3 I S. British 412 0 410 0 410 0 , Golds., )1. 111 0 111 4 111 9 . British Tob. 200 209 209 , Col. Sugar 42 10 0 43 0 0 43 0 0 Auck. Gas 109 137 1 3 o ■ N.Z. Brew. 214 3 212 0 2 1-9 GOVERNMENT STOCK. £ s. d. £ s. d. £ s. d. 1937-40 102 7 O 101 7C> 101 7 6 1952-55 107 10 0 105 17 0 • 105 17 0 1939-52 102 10 0 103 5 0 103 10 0 Latest Sales. Sales since last review have been as follow: — Banks. —Xew Zealand, £1 19/6, £1 19/9 (2), £2; Union, £9 8/6, £9 9/6 (3); Commercial, 18/7, 18/6 (2), (pref.) £9 2/. Insurances. —National, 18/4; New Zealand, £3 2/5, £3 2/6, £3 2/3 .(2), £3 2/4%, £3 2/3; South British, £4 10/ (4). Government, Etc. —Bonds, January 15, 1937-40, 4 per cent, £101 7/6; .Stock, January 15, 1937-40, 4 per cent, £101 10/, £101 7/6 (2); February 15, 1943-46, 4 per cent, £103 10/; June 15, 1952-55, 4 per cent, £105 12/6; March, 1939-43, 3Vz per cent, £103 15/ (2). Auckland Harbour Board, 1957, £108; Auckland Transport Board, April 1, 1944-52, £104 10/; Amalgamated Brick (Auckland), March 1, 1944, 7Vs per cent, £102 (2); Booth, Macdonald, March 1, 1944, £71 10/; Auckland Trotting Club, April 1, 1939-44, 6Ys per cent, £101 5/ (2). Mining.—Blackwater, £1 13/9; Macetown, 3d (2); Goldfields Dredging, 2d; Gillespie's Beach, 1/4 (2); Golden Crown, 4/6, 4/3; Golden Dawn, 2/0;' Martha, 18/2 18/3; Waihi, 10/8, 10/9; Mount Morgan, 13/9, 12/8, 12/6 (2). Australian, Etc. —Australian Glass, £4 11/3, £4 11/5, £4 11/; Broken Hill, £3 13/11, £3 14/9, (con.) £2 14/6, £2 15/; River Plate, lf/6; Colonial Sugar, £43 5/, £43 (2); Dfcnlop, 18/3, 18/4 (2), 18/2; G. J. Coles, £4, £4 0/9 (3), £3 19/, £4 0/3, £4 0/6; Electrolytic Zinc, (pref.) £2 3/6, £2 3/4; "Herald" and "Weekly Times," £3 8/6; Mort's Dock, 10/3, 10/2, 10 ; 6, 10/5, 10/6; Mount Lyell, £1 9/3, £1 9/6, £1 9/3; P. and O. (def. stock), £1 12/; Selfridge's, (old) £1 5/3, (new) £1 4/7Yz\ Woolworths (Sydney), £5 10/, (first pref.) £2 1/. Dominion. —Auckland Gas, £1 3/6, £1 3/3 (2); Farmers' Trading, 18/11 (2); Dominion Breweries, £1 9/9 (2), (rights) 5/0 6/ (2); New Zealand Farmers' Fertiliser. 10/11 (2); Consolidated Brick,' 9/10; Devonport Ferry, £1 1/9 (2); Dominion I. and 8., 16/6; Gear Meat, IS/3; Hill and Plummer, £1 1/9; Ka-iapoi Wool, 15/4%, 15/5, 15/11, (con.) 0/4 (2), 6/3; Milne and Choyee, (A pref.) £1 2/6; National Timber, 14/ 14/1 (2); Robinson Ice £1 2/; North Auckland Farmers, 3/6; Northern Milling, £1 5/6; Northern Steam, 5/ (4); New Zealand Breweries, £2 12/; Renown Collieries, 13/9; Traders' Finance, (pref.) 18/6; Whittome, Stevenson, 18/; United Building, £1 1/; Taupiri, (pref.) £1 3/9.