THE WEEK REVIEWED.

Auckland Star, Volume LXVIII, Issue 150, 26 June 1937, Page 4

THE WEEK REVIEWED.

BUSINESS DULL.

WORLD POSITION HAZY.

AUSTRALIANS FLUCTUATE,

A very dull week. This is the best that can be said of the Auckland Stock Exchange for the period ended last night. Turnover was only 111 ode rate, and although values o-n the whole were fairly stable there was little strength in any section apart from Government stocks and insurances. The cause of this dullness is to be found in external influences. Uncertainty in regard to the position of gold still exists at the world financial centres, and until this is allayed markets generally will continue more or less unsettled. London weekend cables told of lower prices for practically all British, and colonial Government issues. The position of the Australian markets is well illustrated by the following summary of business at recent calls on the Sydney Stock Exchange: — '"After a despondent opening, with cramped business, tire investment market enlivened a little later in the day, though prices remained on a downward trend, revealed mainly in industrial sections. The swing to gilt-edged securities was-evident in larger buying of Australian consolidated securities, the callroom turnover aggregating £32.000 worth." Towards the close of the week'there were signs of improvement in metal shares, and these were confirmed at the last call yesterday by sharp advances in Electrolytic Zincs, with a lesser improvement in Broken Hill Proprietaries and Mount Lyells. Electrolytic Zincs' final sale yesterday was at 56/, showing a rise of 5/9 in the week.

The publication of the annual accounts of Australian Glass appeared to have impressed the majket, and these shares were singled out for special attention, selling at 92 0. a 2/ ri«e. At last balancing this company had investments totalling over £900,000, which is not far short of its paid up capital. Chain store scrip attracted little interest, the only sales being a parcel of Woolworths (Syd.) at £7, and one of G. J. Coles at £5 5/. Government Securities. The demand for Government stock persisted, but offerings were limited to a few issues of the 4 per cents. Values on the whole were steady. Business in local body debentures was confined to those of the Mount Eden Borough Council. A fair quantity of those came on the market and sold readily at substantial premiums, namely from £104 5/ to £106 10/, according to the date of issue. They show a return to the present purchaser of approximately 3% per cent per annum. Bank of New Zealand Steady.

In the banking section Australian issues continued in the doldrums, and buyers' interest centred chiefly on Xew Zealands, which had an active market between 43/9 and 44/. D Mortgage shares were steady between 26/4 and 26/3.

Insurances. Insurances maintained previous firmness till yesterday, when an easier trend was noted, and South British sold 6d lower at £4 15/6.

Mining Fails to Attract. Little interest was ti'T-cen in the mining section. At yesterday's noon call 21 stocks were called, and there wore buyers —at a price—for 15. but only six figured on the week's list of sales.

The Waihi group showed further weakness. Grand Junctions were steady at the lower level of 2/7, but Marthas' had no business, buyers fixing their limits at 15/, while the best offers for Waihi Investments were reduced from 12/ to 11/. The reduction in the profits from the Puket Tin Company, which operates in Siam. and its failure to pay a dividend will have been a factor in further depressing these shares.

j Dominion Securities. | Despite the external influences that [tended to depress the local markets theie was moderate business in purely Xeiv Zealand enterprises. There should be more, for in the Dominion itself the position is sound enough, not to say buoyant, to justify a free flow of investment. Business covered a fairly wide range, with values fairly steady. The brewery section was active, but in the case of Xew Zealands interest changed from the ordinary shares to the rights to the new issue. A big list of sales was put through at prices ranging from 21'6 to 22/7%. and back to 21/3. Dominions were slightly easier, with sales from 44/ to 43/3. C. L. Lines' wene unchanged at 31/. The coal section was represented in sales of Kaitangata. Pukeniiro and Taupiri, with Renowns also in regular request at about late rates. Auckland Gas shares were steady, selling Id higher at 21'8. Milne and Choyce's scrip retained recent firmness. The ordinary shares and debenture stock were in regular demand at 16/9. and a seller of the latter came in yesterday at 18/. Meanwhile the 7 per cent pref. issue had its first transaction for a considerable period, a buyer going to 24/ to secure a parcel. Consolidated Bricks.

The shares of Consolidated Bricks slipped further, changing hands at 7/(5. In the course of a general discussion at the annual meeting on Thursday the chairman of directors, Mr. K. J. Murphy, of Wellington, stated that the brickmaking industry had been seriously affected by the Hawke's Bay earthquake. Although it was now recovering, turnover : was stiil less than half of the trade avail- | able at the time the company commenced operations. Instancing the bona fides of the promoters in 1929, he mentioned that after the formation of the company, 'although already holding 100,000 shares, he had purchased fresh shares at 20/6. In regard to future prospects it was evident that the directors rely largely upon the protection from uneconomic competition that they hope to secure by the inclusion of the brick trade in industries that are brought within the scope of the Industrial Efficiency Act, and have to be licensed. Several shareholders criticised the action of the directors in failing to supply fuller details of the operations of the trading companies, namely. Amalgamated Bricks. The chairman replied that it was inadvisable to release information that might be used by competitors to the company's disadvantage, but shareholders could obtain full details upon application at the company's office. The critics were not completely satisfied with the general assurances given, and a resolution was moved recommending that next year fuller information be supplied. This, construed as a virtual instruction, was strongly

opposed by the managing-director. Mr. T. Clark, and subsequently an addition was made to the effect that the information be supplied only if the directors considered that such action was not to the detriment of the company. In this; innocuous form the resolution was carried and the meeting terminated with an expression of confidence in the directors.

Woolworth's New Issue. In connection with the recent decision of the directors of Woolworths (X.Z.) to make a fresh issue of shares, the scrip was quoted ex rights. The issue, comprising 188,670 £1 ordinary shares, is beinjr offered to present shareholders at par in the proportion of one to every-one at present held. The company has shown remarkable expansion since its inception seven years ago. It now has a chain of 16 stores in the chief centres of the Dominion, and employs over 1000 hands. ■ The £1 shares were sellinir at £8 durin.2 the wc-ek. and after being quoted ex rights lowest sellers »sked £6 for the shares, while the rights had a market between 82 6 to 10.3 '. Hill and Plummer. The accounts of Hill and Plummer were forwarded to the Stock Exchange during the week, but the directors, with unusual reticence. refused to disclose the rate of dividend which they intend to recommend to shareholders. However, as net profits increased from £3598 to £5441, it may be expected that the distribution will not be less than the 6 per cent which was paid out for the previous year. Annual Meetings. Within an hour of each other two of the leading Auckland firms held their annual meetings, namely Farmers' Trading and Wilsons Cement. I\\ each case the directors had such satisfactory reports to present to their shareholders that the proceedings were of brief duration. An interesting piece of information that came from the discussion at the Farmers' Trading meeting was that the contract made with Shillings, Ltd.. in taking over the Queen Street lease, does not bar the company from opening up another store in any part of Auckland city. At Wilsons Cement meeting the chair-, man of directors, after mentioning that sales had increased 25 per cent, stated that of the net profit over 28 per cent was obtained from investments and sales of electricity. The proposals for writing up the fixed assets and distributing the addition in the form of bonus shares were carried without discussion. Since the meeting the ordinary shares of Farmers' Trading aold ex dividend at 21/, while Wilsons Cement have had a market between 19/3 and 20/6.

Trend of Market. The following table indicates the fluctuations in the values of various securities: — BANKS. Dee. 22, June 18, .Tun<- 25. 1036. 1937. 1937. £ s. (1. £ s. d. £ s. d. Ans'asia .12 S 6 12 0 o 12 7 0 Commercial 0 10 0 0 IS 0 0 IS 4 E.S.and A. 5 10 o 6 5 0 6 4 0 Nat., N.Z. 3 4 0 3 4 0 3 4 O Nat., Alls. 7 7 6 7 5 0 7 4 0 N.S. Wales 35 0 O 36 0 0 35 10 0 N. Zealand 216 2 30 2 3 11 Union .... 10 7 6 10 15 0 10 15 0 MISCELLANEOUS. £ s. d. £ s. d. £ s. d. N.Z. Insur. 3 0 6 3 6 0 3 6 0 S. British 4 14 3 4 16 0 4 15 6 Colds.. M. 1 15 9 1 17 4 1 US o British Ton. 2 8 ,'S 2 it !) 2 !l !) Broken Hill 4 2 Ii 3 IS o 3 10 (I Elec. Zinc 2 10 0 2 10 3 2 15 0 Elec Ziuc (pref. I . 2 12 0 2 12 6 2 10 O Col. Sugar 43 5 O 47 0 0 4<i 17 6 Auck. Cas 13 6 117 118 N.Z. Brew. 214 o 2 7 0 2 7 0 Dom. Brew. IIS 0 2 3 0 2 3 3

GOVERNMENT STOCK. .„- £, »•«!. £ s. d. £ s. d. 10..2-...J 101 ~ o •103 7 0 103 .7 O 1930-52 102 0 0 102 10 O 1112 lo 0 1953-57 — 100 O 0 100 0 0

*Ex dividend or interest. Latest Sales. Sales since the last review have been as follow: — Banks.—Xew Zealand, £2 39, £-~> 4/ (2) £2 3/10 £2 3. 1054, £2 4' (3); New Zealand D Mortgage, £1 6,4, £1 63toramerci.il. 184 13), 18 3: Australasia, £12 7 ; National of Australasia, £7 3 Insurances.—Xew Zealand, £3 6/: South Britisli, £4 15, (i. ' ' Government, etc.—Stock, February 15 1043-46, 4 per cent. £104, £101 2 ts" (3i; Stock. June 15, 1952-55, 4 per cent. £lo.j 7 6; Mount Eden. April 1, 1944-49, £104 :■>'; April 1, 1945-50, £104 10.': April 1 19.34-59. £106 10/ (2); April 1, 19.54-61' £106 10/; Amalgamated Brick (Auck.i. March 1. 1044. 6 per cent. £100 (2): A'asian Forestry Bondholders' Trust, 19>Q planting, £31 10/. Mining.—Biri River. 1/654 (21: Gillespie's Beach. 1/5 (3); Grand Junction. 2'7; Mount Morgan. 12,10 (2); Rawang Tinfields, 11/3. 11/454.

Dominion.—Auckland Cas. £1 1'8; Pukeniiro Coal. 18/: Kaitanirata, £1 2 ; Tanpiii. 1.1!) (2): (..'. L. Iniuw, f 1 11 : Dominion Brcwci its. £2 4'. t - '' 3') •" ' 3,' C. £3 .S.-} (21 : Xew Zealand Brew'cri...." £1 Mi. £\ -2 ti. £1 2 7'i. £1 2(1, £1 2/1. £1 2'. £1 2 1',6, £1 19, £1 10. £1 i:i; Boilci (X.Z.). £3 .-. (i |2i: Doniini'in Invetitniout. 15 0; ConsolidaU'd Brick, 7 6: Farmers" Trading. £1 2,0 (ex div). £1 1' IB prof.'). £1 2 3: Grey aid Menzif*. 12/6: Devonport Ferry. £1 0 3 i 2); Kaiapoi pref.. 17.'; Roliinson Ice, £1 2'3: Milne nni] Chovce (B pref. 7 per cent). £1 4': Roller Mills pref.. £1 2'; Xew- Auckland Laundry, £1: Xeu- Zealand Newspapers. £1 13'. £1 l,i 6 12). £1 1"> 0: Radio (19361. £1 3'. £1 36: Tai-anakt Oil. 4': Traders' Finance. 4'.V Woohvorth*, (N'.Z.I. £8. £7 19/6; Cement. £1 19.3. £1 19': J. R. MeKeny.\r. £4: Hellalivs (7 per cent pref.V £1 3/6: Auckland Farmers' Freezinir. £1 2'6. Australian, etc.—Austrnlian Class;. £4 12 '6: Broken Hill Promictniv. £3 18 6. C 3 19, £3 18/ (2). £3 19/6; Colonial Sugar. £47: Dunlop Perdriau. £ 1 II £1 2/.°.: Flect'-olvtie Zinc. £2 12'6. £•"> 13'. £2 16': Electrolytic Zinc pref.. £2 14 6. £2 l.i': G. -T. Co'-s. £.> .-': Dock. 14 '3: Mo-mt Lvell. £2 1 6 (21, f">. 1 ' (4V £2 1 '6; Tooths Preweries, £2 i.V3: Woolwovtlis (Svfl.l. £7.