THE WEEK REVIEWED.

Auckland Star, Volume LXVII, Issue 235, 3 October 1936, Page 4

THE WEEK REVIEWED.

A DULL PERIOD. AUSTRALIANS EASE OFF. MINING SHARES IMPROVE. The slight improvement noted on the Auckland Stock Exchange in last weekly review was not maintained. Turnover for the week which ended last night was extremely moderate, even allowing for the day taken off as a holiday for Dominion Day. 'llie reduction in the number of sales recorded was due to lessened turnover in Australian issues, in Government stocks and in insurances. Bidding at the various calls was very steady, but at no time was there real animation in any section with the exception of mining, which received a fillip with the advance in the price of gold.

The outstanding event of {lie week occurred in the international area. News of the devaluation of the franc was quickly followed by the announcement that Britain and America had co-operated with France, with the result that a currency agreement between these three leading nations had been come to. This, coupled with the fact that franc devaluation had appeared for some time to be inevitable, had the effect of easing the strain on the world's markets. There lias been no suggestion of panic at any point and, although the London gilt-edge market is slightly weaker, the general tone in the world's financial centre has not been seriously disturbed.

The chief reflex from an .investment point of view was an advance in the price of gold mining shares, consequent upon : the increase made by agreement in the 1 value of the metal. In general terms the _ new understanding should be welcomed by , investors, as it may well become the precursor of a wider agreement in which the 1 economic relationships of the world's lead- , ing countries may be directed along mutu- ' ally advantageous lines, instead of the aggressive nationalism which has been a paralysing factor in world trade since the Great War went far to disorganise normal industry. Banks Are Quiet. Banks had another dull week. New Zcalands retained last week's price, 38/ G. in the two sales recorded, but the | market looked stronger at the close 1 of the week with sellers at 30/. , Nationals were 011 offer at GO/, without! business resulting, but as the scrip I changed hands at that figure in the south the holder's estimate cannot be far astray. Commercials and New South Wales both registered slight improvement, the former with business at 18/5 and the latter from £32 10/ to £32 12/6. Insurances. There has been little activity in the insurance section in recent months, but it is a long time since recorded business was confined to two transactions, as was the case last week. However, the section I was not entirely lifeless. South British, I with a dividend announcement imminent, improved with buyers up to 90/ and no sellers. Nationals, whose financial year ! ended this week, sold Id higher at 18/o,"j with more wanted at that figure. This 1 marks a rise of Gd in the month. Meanwhile New Zcalands have been neglected, with sellers at Gl/G and 110 buyers. Fixed Term Securities. The demand for Government stocks was steady, with buyers for all issues at prac- 1 tically every call, but their limits were rigid and sellers—whose numbers are very 1 limited —could not force increases 011 late j \ rates. There was a freer offering of local 1 body debentures, but sellers' reserves were J high—up to £111 was asked for a parcel 1 - of Auckland Harbour Board 4V4 percents -—and no business resulted. '

Mining. The higher price of gold was promptly reflected in fresh interest in the Wnihi group and Mount Morgans. The last mentioned attracted special attention, by reason of its new development policy and, in extensive dealings, the shares ' rose rapidly froiji 13/6 to 14/9, the highest point in recent months. This proved to be peak in the meantime, as the market slipped back later to 14/ and 14/1. Output under existing conditions appears to be well maintained, as 26710z of gold and 146 tons of copper were mined in the four weeks ended September 30. Marthas registered a sharp advance, selling on Tuesday morning at 19/G and 20/, a rise of 1/6, with latest valuation 20/1. Grand Junctions rose from 3/3 to 3/9, and Wailiis were steady at 10/6. Placer Developments also sharted in the rise with a sale at £4 ID/. For miseel- j I lnncous Domhron ii«iic.s there was little inquiry, but Golden Crowns sold Od higher at 5/. Australian Issues. There was the usual active demand for a wide range of Australian securities, but the market across the Tasman was very firm, and local dealers were hesitant about following the lead from Sydney and Melbourne. As a consequence sales in this class were about half of those recorded the previous week. Broken Hills moved i up again, with sales from 76/ to 76/8, and the rights to Wellington Alluvials were placed from 2/9 to 2/10. G. J. Coles were sold, cum rights, at 82/, and for ex rights the market lay between 36/ and 37/. For the rights to the new issue which is being made at £1 premium, one for every five shares held—there were buyers at 31/. and- sellers 34/. Mount Lyells were steady at 29/9, and Electrolytic Zinc preferences were unchanged at £2 5/. but imnroved later with buyers at 45/9 and sellers 46/4.

Dominion Securities. For local industrials there was a moderate inquiry and turnover. Values on the whole showed few changes, but Auckland Gas eased further, with business at 22/1. Buyers remained in at this figure, with holders asking 23/. Macky, Logans were in demand and sold 1/3 higher at 21/3. Dominion Breweries held firm at 32/, but New Zealands were again absent from the sales list. Farmers' Trading. Farmers' Auctioneering, Consolidated Brick and Wilsons Cements all had dealings at late rates. Trend of Market. The following table indicates the fluctuations in values of various securities:— Dec. 5 3, Sept. 25, Oct. 2, 1935. '5936. 5 930. £ s. <5. £ s. d. £ s. (I. Aus'asia . 51 7 0 52 O 6 »51 55 0 Commercial 0 17 10 0 5 8 3 O IS 5 E.S. ami A. 5 9 6 5 57 0 5 10 O Nat., N.Z. 3 12 0 3 0 0 2 19 6 Nat.. Aus. 0 59 0 7 2 0 7 0 0 N.S.W. ... 32 5 0 32 10 0 32 12 0 N. Zealand 2 7 10 1 IS 0 1 18 5 Union ... 9 11 0 9 10 0 9 10 0 !• MISCELLANEOUS. £ s. d. £ s. d. £ s. d. N.Z. Insur. 3 3 3 3 1 3 3 1 3 S. British 4 12 0 499 4 10 6 Golds., M. 1110 1 13 7 113 7 British Tob. 200 233 2331 Broken Hill 217 9 315 9 3 II! (>! Col. Sugar 42 10 0 42 17 6 43 2 (> Auck. Gas 109 131 129 N.Z. Brew. 2 14 3 2 12 3 2 12 3 GOVERNMENT STOCK. £ s. d. £ s. d.. £ s. d. 1937-40 102 7 6 101 15 0 101 17 6 1952-55 107 10 0 105 15 0 505 55 0 5939-52 102 10 0 104 0 0 104 0 0 *Ex dividend. Latest Sales. Sales since last review have been as follow: —

Banks.—New. Zealand, £1 18/6 (3); National of Australasia, (con.) £7; Com-, mercial, 18/5; New South Wales, £32 10/, £32 12/6 (2). Insurances.—National, 18/9, 18/10. Government, Etc.—Stocks: November, 1938-52, 3Vs per cent, £104 (2); February 15, 1943-46, 4 per cent, £103 15/; June 15, 1952-55, 4 per cent, £105 15/ (2). Mining.—Golden Crown, 5/ (2); Grand, Junction, 3/3 (2), 3/4 (2), 3/7, 3/9; Waihi Investment, 10/6 (2); Martha, 19/6, £1 (3), £1 0/1 (2); Mount Morgan, 13/6 (2), 14/3, 14/5, 14/3, 14/2, 14/3, 14/6, 14/8, 14/9, 14/6 (2), 14/, 14/1; Mataki, 1/1%; Placer Development, £4 19/; Molyneux, 2/ (2); Alluvial Holdings, 1/2%, 1/3.

Australian, Etc. —Australian Glass, £4 12/3 (3); Broken Hill, £3 16/, £3 16/3, £3 16/8, (rights) 2/9 (2), 2/8 (2), 2/10 (4); British Neon, 17/: Electrolytic Zinc, (pref.) £2 5/ (2); G. J. Coles, £4 2/ (2), (rights) £1 14/; Kauri, £1 4/6, £1 4/3; Mount Lyell, £1 0/0; Woohvorths (Sydney), £5 6/, £5 6/6; New Zealand Loan and Mercantile, £35 (4). Dominion.—Auckland Gas, £1 2/9; Berlei (Xew Zealand), £3; Consolidated Brick, C/ 6 (3); Dominion Investment and Banking, 17/6; Dominion Breweries, £1 12/; Kaiapoi, 14/6; Farmers' Auctioneering, (B pref.) £1 l/G 12); Farmers' Trading, 18/10 (3), (B pref.) £1 1/, £1 1/1; Macky, Logan, £1 1/3: Northern Steam (con.) 1/4; Newton Kins, (pref.) 7/; Traders' Finance, (con.) 5/; Taranaki Oil, 1/6; Taupo Totara, (pref., 16/ paid) 15/; Wilsons Cement, £1 16/G (3); Woohvorths (New Zealand), £o 3/, £5 3/6; Napier Woollen, 17/9.