THE WEEK REVIEWED.

Auckland Star, Volume LXVIII, Issue 49, 27 February 1937, Page 4

THE WEEK REVIEWED.

ANOTHER BUSY TIME

LONDON CALLS THE TUNE. SENSATIONAL METAL PRICES. ALL ROUND ACTIVITY. ''The London metal market to-day was the scene of one of the wildest gambles since the war. Business wis the largest in tiie memory of present members, and turnover reached the unprecedented total c>: 32.1X50 tons.'' 'lies cable message dispatched from London oil Monday last goes a long way townnls explaining the extraordinary activity on the local Stock Exchange. Nothing is more liquid than capital: nothing more sensitive than the investment market. Ail important move in th" worlds financial metropolis invariably its repercussions at this end.

\\ itli tiie backing of a wave of prosperity in Britain and a woi Id armament building programme on a colossal scale in progress, it is not surprising tiiat a keen demand has set in for raw materials, ■with metals in the centre of the picture. For years over-production has been the bogy of economists and international agreements to limit the output of such indispensable articles as rubber, tin and copper, have been in force. Now it appears doubtful whether supplies -will suffice for the sudden call that has been made, and prices have soared accordingly. Australia as a notable producer of lead, copper and zinc, and with immense capacity for steel manufacture, stands to benefit very substantially. I'rior t > the latest sensational advances in the world metal markets, leading securities in the Commonwealth "had sulistantially as a consequent-# of increasing business and greater profits, and this upward trend has naturally been accentuated. At the moment the reaction in this Dominion is less market!. We have no base metals for sale, nor even wheat. However, if the rpesent boom in Britain continues the effects of high prices there should be reflet-ted in increased receipts for our food products. Recorded sales for the week which ended last night were slightly more than for the previous period, so that the total for the fortnight has reached extraordinary dimensions. Australian issues again held a dominating position. Heavy business was put through in all the main lines, with values fluctuating from day to day. Generally speaking the price level at the end of the week was somewhat in advance of values at the beginning. but with speculation rife both here and in Australia it would be difficult to arrive at stable quotations. Mount Lyells supplied a good example of rapid changes. Starting the week at 51 3, they dropped to 50,6, then rose in a few days to 58', only to decline later to 53 . finishing with a market between 53 3 and 53 9. Broken Hills started at 87 , rose to 91. , and closed at 87 6.

Chain Stores. Chain stolon had a good pharc of the business. J. Coles were a centre of speculation. From £o 8 0 the Kt-ii f> advanced to £."> 1:} 0, and later eased to £"> 10. , with final business at £."> II '. Woolworths lSyd.l were fairly steady between £8 !» and £8 11 (j. ,ind Selftidges kept witliin narrow limits between 39 :5 and 311 ti for the old issue, and troin 38 9 to .'{D 3 for the new. Wool worth* I X.Z.I, gained 2 0, with business at i.'7 Bank of New Zealand. In the Banking section the chief feature was a recovery in New Zealand*. Those shares have had a long spell of dullness, with values at unusually low levels: level* that were not justified when consideration of the Bank's security and earning powi-r are given due emphasis. Tin* shar:>s sold on Thursday of last week at 40 !). On Saturday buyers moved up to 41 0. but holders were alert, and it was not till Tuesday mid-day that a couple of parcels were liberated, and for these 44/ was paid. By this time there were plenty of buyers. The market had awakened, and the nest 6ale was at 4o . So steep a rise naturally brought a reaction. There was an easier trend on Thursday, with sales from £2 4/6 to £2 3/9. This was followed by renewed firmness, and latest rates were at 44,'. Amongst the Australian Banks those with headquarters in London seemed to enjoy a preference, and I'nions gained 10' in the week, with final business at £11 2'. The announcement of a final dividend at an increased rate by the directors of A sia may ho expected to confirm the ri-c-nt strengthening of thi* mai ket. New South Wales scrip was vei v lis in. ami after the quarterly dividend had been made sales w ere made up to £36 , a rise ot i"> since Christmas. Insurances Quiet. By comparison with other sections Insurances were quiet. South British dropped back to 97,0, a drop of 1,0 in the last ten days.

Fixed Term Securities. Government Stocks and local body securities had le* attention as a result of the boom in industrials, and iu a moderate volume of business buyers had rather the better of any changes. Auckland Harbour Board debentures were steady. Mining Quiet. Only two features were notable in a quiet week for milling, namely a rise of 1, 1 in Waihi Investments, which sold at 14 <>. and marked activity in Mount Morgans. The shares of the big Queensland enterprise were in keen demand, and sold daily at prices ranging from 17, 4 to 18, 7, with a final valuation of 18/5. Rawang Tins had a natural reaction from the rise in that metal, and sold 2 up at 13/6. L Dominion Securities. The general activity which had its chief inspiration from London, and centred in the metal markets, had its local reactions. Turnover in miscellaneous ! Dominion issues was Aulistantial, and although some classes still reflect nervousness born of higher costs and political uncertainties, the general tone was healthy. A notable example was provided in the ease of Auckland Gas. usually one of the most popular selling lines on the list. | which had dropped to the low level of 1 21/. These shares moved up steadily to 22/. and yesterday there were unsatisfied < buyers at 22/3. j Sanford shares were in keen request towards the close of the week, and sales were recorded from 5/ to 5/4. which is about double the price at which they could have been bought before the last annual meeting. In the timber class Taupo Totaras \\ere steady at 9 3, but Nationals slipped 3/. with business at 10'. It is surprising that timber shares should have received so little attention in recent months, for with the big building schemes in hand it may be expected that the mills will have a considerably increased output. Departmental stores were well represented on the sales list. Mackv Logins dropped 6d, with business at 22/6. Farmers' Trading eased from 23'4 to 23 ', and Milne and Choyce deb stock was unchanged at 16/6. Wilsons Cement I had their first sale for over a fortnight, | the holder accepting 36/, a drop of 1/9. Trend of Market. The following table indicates ' the fluctuations in values of various 1 securities: —

•Ex rights. Latest Sales. bai« since la«-t review have been as follow: — Banks.—Xew Zealand. £2 4 ill', i.2 4 3. £2 4 0 i'21. £2 j <3>. £2 4 (5. £2 3 0. £2 4 i2i: Commercial. 10 13 •. 19 4<2 ■. E..S. and _V. £ti 8 (j. £0 0 (i. £6 S i.odd lot'; Xew South Wale*, £3<j in i.ii iex divi i.36 3 (2i; Union. £11. £11 2 . Insurance.—South British. £4 IS 3. £4 1« , £4 17 B 121; National. 18 1. 18 1 ! 2 . is ; Xew Zealand. £3 <i 0 13■, £3 1 .

Government, etc.—Bond*, .1 tine 13, 19524 per cent. £103 K> ; 1046-40. £ 1 (i.i: Stock. Maicl). 1030-43, 3 1 ~2 per cent. £ iol 1") , £101 12 (j. £101 10 ; November. ii'3S•V-'.. 3's per cent, £ K'l 12 (j i2j; >'ebi ua:y l'i. 1043-46, 4 per cent, £101 10 ; April l'i. 1046-49. 4 per cent. £103 (31, £403 o ; .Stock, .June 10. 10.)2-.")."i. 4 per cent. £103, £' 103 10 ; Auckland Harbour Board, -July I!)."i4\ 4'i per cent, £10o; July 0, 1941. 4V« per cent, £102; .Mount Kden, April 1- 4 1 '* i>er cent. £10:1; Amalgamated Brick ( Auck. i. March 1. 1044 . 6 per cent, £ 103 10 i.")i; .lolin Fuller. 1049, per cent. £72 10 i2i; Xew Zealand Forestry Bondholders, 102*5 planting. BB £31 lo . .Mining.—Maltha. 10 0. £1; Grand Junction, 3 S: Waiiii. 14 6; Mount Morgan, 17 4, 17 .1. 17 7, 17 7'-j. 18 3. IS 6 (2), 18.7, 18 3 iji. 18 2 (2i, 18.3, 18.5; Rawang Tin, 13 6 <2i. Australian, etc. Australian (il.iss, £4 13 6 12i, £4 13 ; lVnn>s Lascellef. 10 4; I'. and O. del. Sto< k. £2 2 3; Britaih Tobacco, £2 12 6. £2 12 0 121. £2 11 0, £2 12 ; Broken Hill J'roprietarv, £4 6 , £4 7,. £4 8 6, £4 In, £4 if i2l, £4 10 6. £4 in' 121, £4 0 . £4 8 0, £4 7 6; Broken Hill 1 'roprietary icon.i, Jt!3 17,-; ( olonial Sujxar, Klectrolvtic Zinc, £.5 4 . £3 6 . £3 1,6. £3 2.9. £3 3 , £3 3 6, (pre! ) £3 .*> . £3 4; (5. J. Coles, £•". 8 6, £.-, 11 . £.-> 12. £.5 12 6. £o 13 6, 13 . £.:. 10 6. £ 1(1, 121, £."> 11 ; Huddart I'arker. £1 19 i2i; Gohlfbrougli Mort. £1 17, 6: Dunlop l'erdriau. 19 3, 10 2 i2i. 10 1. 10 ; Kauri Timber, £1 3 9, £1 3 3 (.21; Xew Zealand Loan and Mercantile. £4.>; Morts Dock. 1411, 1.13 141, 15 1, 15 (2»; Morris Hedstrom, £1 9 6: Mount Lvell, £2 11 3. £2 10 6, £2 10 0, £2 12 0. £2 17 , £2 18' (4), £2 14 6 131, £2 14'. £2 15 (2.1, £2 13 , £2 13 3, £2 13 6; Union Investment, 1 6: Tootlin Breweries. £2 17 4Vi (2l; Varra Falls. £2 1 0 I2i: Selfridges (Asia) (oldi, £1 19-.3, £1 19 6; (new) £1 18 9, £1 19'. £1 19/3; Woolworths (Syd.i, £8 it . £8 10'. £8 11 . £8 11/6. £8 11 12); Woolworths 1 W.A.I, £7 6 . Dominion. —Auckland Gas. £1 1' (2), £1 1 1. £1 19, £1 2 , 16 9; Claude Xeon l N.Z.I. £1 11; Consolidated Brick, 1(13 (21; Dominion Breweries, rights, 10 3, 10 6, 10 3 (4), 9 0: Dominion Fertiliser, £1 4 ; Farmers' Trading, £13 4. £.1 .3' 1 21 , A pre!., £12 9: B pref.. £1 2 ; Fanners' Auctioneering ( £1 pd.i, 12 6. A pref. £12 6. £129; Ma< ky Logan. £1 26; M.K. Millinery, £2 8 6 (21 : Xor- [ thern Steam. 5 (2•; National Timber, t l(i. (3.1; Northern Roller Mills, £1 2 , ilj'ief.) £1 2 6 i"2): Xoith Auckl.ind | Fat mers. 2 1: Milne and (lioyce (deli. stock i. 16 6; Xew Zealand Breweries, £3 I (51. £2 10 0. £3. £3 0 6, £3; New Auckland Laun.liy. £1 li 6: New Zealand Newspapers. £2: Ro4)insons Ice. £1 3 ; Saillord. 5 ', ."i 1. 5 .3. 5 4 121; Taranaki Oil, 3 1 (21. 3 2. 3 2V4. 3 6; Woolworths iN.Z.I, £7 7 ; I'nited I'ermanent Builditig. £1 (i 6; Wilsons Cement. £1 16 : T.nipo ToI tara. 93: Selfridges (N.Z.I (4 paidl. 4 l(i ! 4: Staples and Co., £1 14,4%; British ; Neon, 15'.

Dec. 22. Feb. 1ft, Feb. 2G, 103G. 1037. 1037. £ s. d. £ s. d. £ s. d. Ausasia . 12 8 »i 13 1 13 1 <1 Commercial 0 19 O o 10 o O 19 4 E.S. and A. 19 (• l> 8 <> (i 9 C> Nut., X.Z. 34 li 323 323 Nat.. Alls. 7 7 (J 7 14 9 7 Hi II X.S. Wales 3"> 0 0 3li 4 O *3i> i> X. Zealand 2 1 6 2 1 0 2 4 0 Union ... 10 7 6 10 14 0 11 2 0

MISCELLANEOUS. £ 8. d. £ s. d. £ 8. d. N.Z. Insur. 306 3 1 7J 3 1 0 S. British 4 14 3 4 IS 4 4 17 6 M. 1 I.", ;t 1 18 n 1 17 6 B. Tohaciit I' S 3 2 12 « 2 12 0 Broken Hill 4 2 <> 4 0 It 4 7 « Elec. ZilH- J 10 0 2 IS 3 3 ti Etec Zinc (pref.i . 2 12 ft 2 1!> " 3 4 (I Col. Suirar 43 ."> ti 43 " " 43 " n Am-k. lias 1 3 i> 1 1 <> 1 2 n N.Z. Brew. 2 14 <i 2 1!> !i 2 l'.» 0 I Hi ill. Brew. 1 18 1) 2 4 ft *1 iy ft GOVERNMENT STOCK. i- s. J. 4; s. d. £ s. d. 1 :>52o"> 1111 5 II l(>3 7 li 102 1". 11 i:i3!>-".2 1112 0 0 mi 12 •; im 12 1; l'Jo3-u7 — Its i) 'js r> 1.1