THE WEEK REVIEWED.

Auckland Star, Volume LXVIII, Issue 25, 30 January 1937, Page 4

THE WEEK REVIEWED.

SATISFACTORY BUSINESS- « K E BUOYANT TRADE HELPS. C A .N GOVERNMENT STOCKS FIRM. AUSTRALIANS IRREGULAR. i Despite a curtailment due to yesterlay's holiday the week on 'Change proiuced a satisfactory turnover. The naiket tone continues buoyant and a a rood list of sales at every call testified to the confidence of investors. Values o jenerally were maintained at late rates, j losses in some sections being compensated j uy gains in others. The general outlook for investment is t satisfactory. Latest cables from the Homeland are highly encouraging. British 1 trade continues to progress and there 5 are good reasons for believing that, bar- t ring international complications, the new i year will give results even more satis- c tying than those obtained in 1936. This, c nt any rate, appeals to be the view taken i by the leaders of the London banks, ; which have lately been holding their .1 aniiu,il meetings. t) With an increase in the purchasing *- power of our best customers and a boun- 1 tu'ul productive season well under way, 1 the prospects for this Dominion seem excellent. Several extra million pounds J are already in sight as a result of higher I wool prices, and this will more than ' compensate for rather . disappointing 1 returns hum dairy produce. Buoyant J markets for wool and satisfactory meat ' consumption at Smithfield are reflected m the sheep fairs now being held through- ' out the Auckland Province, with farmers ■ competing eaueily at record prices for ' store sheep mid iambs. ' Further trading results that have just ' been published confirm last week's fore- j cast that the yield from New Zealand . industrials for 1030 will, in most cases, be satisfactory alike to shareholders and to • investor.-*. Earnings from three gas com- ' panics -- Auckland. Chiistchurch and Napier—have been lower, but the first ' two have maintained late dividend rates, j while the Napier distribution is to be J raised from •"> to SM: per cent. The drop in the Auckland return is substantial, , over £ 11.000. but it is still sufficient to meet dividend requirements with nearly ! £tHKX) of a surplus. \ The demand for fixed term securities j showed no signs of slackening. All listed ( lines were asked for at almost every call, and vendors had no difficulty in realising I at full late rates with advances in some cases. The shorter term, namely 1943•M. seemed most popular, buyers going to £104. thus being satisfied to take an annual return on outlay of 3 3-;) per cent. For the longer terms about 3 7-10 per cent per annum was available. The new Government issue. 3V4 )ier cent 1953-57, ! has not been quoted locally, but our : Christchurch correspondent reported on Wednesday that there were buyers in that centre at £98, with sellers at £100 ' 5.'. Local body issues seemed a little firmer . and Auckland Haibour Board debentures were sold at £104 10/ and £105, to show a yield of approximately per cent per annum. Bank Shares Firm. Austialian banks again had a good market, and in most cases the advances of the previous week were retained. Commercials firmed up. with business at 19 £. after which buyers moved up to 19 9 without securing supplies. This is the highest level reached since last April, when the scrip sold up to 20/4. Unions paid 3 dividend in sterling, after which the sale price was lowered from £10 14' to £10 11 '6. New South "Wales eased slightlv. with a market between £3o 10/ and £36. Nationals of New* Zealand improved, with buyers at 62'9. but New Zealands continued vers* "sticky" and a vendor had to accept 40,9 to turn his holding into cash. It was a dull week for insurances. Most of the business was in South British, whicli gained 6d, with sales at 95/6. while Nationals had a single transaction 2d up at 18/5. Mount Morgan Report. In the mining section there was a steady demand in the Waihi group, but Mount Morgans had most business, with sales- from 17/ to 17/2. The maintenance of values at these levels, which are the highest on record, seem to indicate the satisfaction of the market with the progress report cabled to the Exchange by the directors on Wednesday. According to this report the new ore body which was opened up in December appears to be developing remarkably well and should prove a valuable addition to the company's ore reserves, which, at last balancing. were over 9.000.000 tons. Lower operating costs are expected from the extensive reorganisation of mining plant and equipment. Martha shares improved 6d, with sales at 20/6. and Waihi Investments were steady between 13/2 and 13/4. Outside investments included on the sales sheet were Placer Developments at £5 and £5 1/. Emperors, which sold higher at 19/4%, and Komata Reefs, which at 7/10 Vi made a similar gain. Smaller Dominion issues received only moderate attention, and business was confined to Golden Crowns, Maori Gully and Mossy Creek. Australian Issues. The tendency for Australian securities to monopolise attention was not nearly so marked. Across the Tasman the spirit of almost boundless optimism that 6ent values of all popular industrials up to peak levels has changed to one of caution. Values are still fairly steady, but generally at lower levels. This trend was reflected locally, and turnover suffered accordingly. Chain store scrip held closely to recent peak prices. G. J. Coles selling from 98/ down to 96/6, and then up to 97/, with Wool worths (Sydney) changing hands from £8 12/6 to £8 16 / , and Selfridges selling from 42/9 to 42/3. Pastorals were less active, but Goldsbroughs were firm, with buyers at 38/. Fluctuations in the metal markets were reflected in Electrolytic Zincs and Mount Lyells, both of which eased slightly. Breweries In Demand. The breweiy section was the strongest amongst the industrials, and investors bid freely, both for New Zealand and Australian issues. New Zealands took an upward turn, selling from 56/6 to 57/3, and Staples sold 6d higher at 41/6. Rumour persists in coupling the future of these two concerns, but so far no reliable information has become available. Dominion Breweries were in keen request and touched a new high level, with sales up to 42/6 and buyers still in at that figure. C. L. Innes were in regular request at 24/. but there were no sellers. In Commonwealth issues Tooths were asked for at 55/9 and a new line, Queensland Brewery, came on the list, with quotations between 25/6 and 26/6. This concern, which has its headquarters in Brisbane, has a paid capital just short of £500,000 in £1 shares, and pays 5% per cent on preference and 7 per cent on ordinaries. Miscellaneous. For general industrials and departmental stores there was a good demand at about late levels. Auckland Gas shares reacted favourably to the publication of the annual accounts, and sold 2d higher at 23 / 8. Roller Mills maintained the recent I Advances, with sales of the ordinary at 22/ and of the preferences at 22/6. Willsons Cement were unchanged at 39/,! and Farmers' Trading reached new high j levels, with sales from 23/ to 23/3. Local issues generally had strong support. New Auckland Laundry sold at par, Silknits had a transaction at £2 15/ for the £1 shares, and Hellabys' 7 per cent preferences changed hands at 23/. Trend of Market. The following table indicates the fluctuations in values of various securities :— I Dec. 22, Jan. 22, Jan. 29, 1936. 1937. 1937. £ s. d. £ s. d. £ s. d. Aus'asia . 12 8 6 12 16 0 12 16 0 Commercial 0 19 0 0 19 7 0 19 9 E.S. and A. 5 19 0 660 666 Nat., N.Z. 340 324 330 I Nat., Aus. 776 776 776 N.S. Wales 35 0 0 36 0 0 35 15 0 IN. Zealand 216 210 20 10 Union ... 10 7 6 10 14 0 flO 11 6

MISCELLANEOUS. £ s. d. £ s. d. £ 6. d. N.Z. Insur. 306 313 313 S. British 4 14 3 4 15 0 4 15 6 Golds., M. 1 15 9 1 IS 0 1 18 3 British Tob. 3 g 1-' O *2 11 0 Broken Hill 4 2 6 423 4131 Elec. Zinc 2 10 0 2 17 0 2 15 0 Elec. Zinc „ I (pref.) . 212 0 217 0 216 6 ■ Col. Sugar 43 5 o 43 o U 4:: 15 U | Auck. Gas 136 136 13Sj N.Z. Brew. 2 14 0 2 16 10 2 17 6 GOVERNMENT STOCK. £ s. d. £ s. d. £ s. d. 1952-55 101 5 O 103 o O 103 12 6 1030-52 102 0 O 101 15 O 101 12 6 *Ex. bonus. tEx. dividend. Latest Sales. Sales since the last review liave been as lollow: —• Banks. —New Zealand, £2 1/ (. 10J, £2 0,9 (2;; Australasia, £12 15,; E.S. and A., £b 6,6; Commercial, 19, 8 Union, £10 11, 6. Insurances. —National, IS, 5; South British, £4 15,6 (oj. Government, 1-tc.- —Bonds, April 15, 1946-49, 4 per cent, £104; June io, 195200, 4 per cent, £103 12,6 (.2.1. .Rural bonds, September 15, 1947, o per cent, £102. Stock, November, 1938-52, percent, £101 5, ; February 15. 1043-46, 4 pert [cent, £ 104; April 15, 1946-49, 4 per cent, £103 17 6; June 15, 1952-55, 4 per cent, | £103 12,6. Auckland Harbour Board, i July 9. 1957, 4Vi per cent, £105 (.2); July ! 9, 1952, 4 1 /* per cent. £104 10.'; Haweral County Council, November 15, 1041. 4V* per cent, £102; Mount Eden, April 1,1 1961. 4H per cent, £105. j Mining.—Golden Crown. 5/ (2), 5,4;! Komata lieefs. 7, lO'/s; Martha, £1 0 6 (2); Maori Gully, sd: Mossy Creek, 1,2; Waihi Investment, 13 3 (3). 13 2. 13,4, 13 2 (2); Emperor, 19 4Vs; Mount Morgan, 17 2. 17. (21, 17 1 (21, 17.2, 17,1; Placer Development, £5. £5 1 . Australian. Etc.—Australian Glass, £4 i 13 6; Australian Iron and Steel, I pref.) I £1 7 6; Broken Hill Proprietary, £4 191 (3i, £4 2 . £4 1 0. £4 1 6. £4 1,9. £4! 16. £4 13: British Tobacco, £2 11/9; I Colonial Sugar. £43: Dunlop Perdriau. 18 10. IS 0. 18 10; Electrolytic Zinc, £2 15 10. £2 15-6. £2 15 S. £2 15,'; ElectroIvtic Zinc, tpret.) £2 17 : G. -1. Coles, i £4 18 . £4 17 3 l2i. £4 17 '. £4 16 9 <2), £4 16 6 (21. £4 17 : Morts Dock. 13', 13 3 (2.1. 13 2 (3l: Seltridires (Australasia), (new) £2 2 9. £2 2 6 (2 1 . £2 2,3. (cdil) £2 2 6: Woolwortlis (Sydney l. £8 12 6 (2i. £S 14. , £S 15.', £8 16.'; Hume Pipe. £ 1 1 '. Dominion. —Auckland Gas. £1 3.6. £1 3 S (3). (con.l 17. (2): Claude Neon (New Zealand). £1 11 6: Consolidated Brick, 10 5, 10/4. 10 3 ("2); Dominion Breweries. £2 26; ipret.) £2 26; Devonport Kerry. £1 0 6: Farmers' Auctioneering, (A pref.) £1 3'. IB pref.) £1 2' (2); Farmers' Trading. £1 3' (2). £1 3'3; Gear Meat. 17 3: Macky Logan. £1 3'; New Zealand Breweries. £2 16 6 ' 131. £2 16 0. £2 17.'. £2 17 " 12): Northern Steam. s'. (pref.) 17 3 i 2): Northern Steam. 5 ; Northern Roller Mi'ls. £1 2' <3:. (pref.) £1 2/6; N'-.v Zealand Newsoaoers. £2 0 9 (2): New Zealand Drug. £3 10' (21; New Zealand Refrigerating. (con.) 95. 9,'6: New Auckland Laundry. £1: Silknit. £2 15/; Stapes Brewery, £2 16: Taranaki Oil. 18 13): Woolwortlis 'New Zealand). £7 3'. (nref.) £1 17 : Wilsons Cement. £1 19'; Hellalivs, (pref.. 7 per cent), £1 3/.