THE WEEK REVIEWED.

Auckland Star, Volume LXIX, Issue 286, 3 December 1938, Page 4

THE WEEK REVIEWED.

IN THE DOLDRUMS. SHARP DROP IN SALES. i VALUES ON DOWN GRADE. <;< iVEKXMKNT STOC KS CO LOWER. A dull, weak market! I his is tlic- lxist that can he said of >'"ik Exchange business, which is pctci- ■ "It badly as Christmas time | I; is usual in the last month of the iy l! i : ■'! i>'l in Sti>« k Em hange serin i- ': -i* ■ : j 11 #». People are mote coti- ] 11 ' ' ' •" panning lur expend i tin e till J ' 1 " ■•a>s i.ilii; '- tli.in lur investment. This ! " i i • -1 o u i, i: y slackness seems to have I ■ " 1 ■' '"i" than UMial. having lieen pre- • i". ■ i:. 1,, number <>;" "be,,, " in llu- , en I ' l ' 1 tui inner last week was veiy I . ' 1 '• ' '' ( • I' that can ibe said in fav<uir ! "1 -'<•■ 111 ,1 at '.lie present time, unless ; : i • i •';' • • ■ t tin' w ell-worn counsel tint | ' I '■ " 1 ' 1 ' '"i\ is when everyone w ants I !'• ... giving effect tn this axiom.! I i-'cuai lie possible fur a person w itli J 1,1 secure barg .us to-day •' run nut profitable holdings in the tew and subsequent years. Then and Now. ( i i?i ! i a st i ng tlir piesent position with ' a war ago. it is only necessary t " ; .1 a 11; i "i la.it sales for tile week which ' ni-lii weie harel\ half of those in t'i" ' "I lespnmliug period ~i year ago. I'"" 1 ■ : 'O' ut n n 11 ;ik provided by current T ' ! : .i" i-i.i ai e indicated in a few coinj Comparative Values. A year ago. To-ila.v. !, - s. it. u g. ,i. , 1 lii.-n: j.t«i.-li-s : | ' -"'7 !»k 100 ;»;■ 2 r; 1 - I .'i IU . . 1 ll_' J II (i '.IS 1 II II i ..lilt O II 'js to II 1 ""I 'las . . 1 1 o o IS 7 , WiU-n- i',.. . I, IT !. n i; o 1 11 "• VZ i! t so -o :i I I'. Mm-gag- .. 1 In o 1 „ > X. I„-. . ;j , „ L , n "in": I H i nk II 1 li !l II 11; ll .' M" i. *1 1 1.! II 1 ;i o ■ 11 ' •! ' I'm . v.l-rt-, . . - O o 1 1-J I; \/ If. w "Tes .. -J O ] ls ~ I 1 •' I radius . 1 o 0 0 J'J I Some of the Causes. I 'i- i" l ' diiii- ult to enumerate the chief 1 .-'.-1 "' til" "ileal i-h i It tl Helices to whicli ' ■ m " li.ii been made. Stock I' 'i .: ili„.t« ,!i London ale stiil disturbed 1,1 ' nit'", u it:llsi.i! alFaiis. which ,u e very 1 " ■ ■' I '"i ft.iluiit.\ . and the huge ai ina- ■ n.-lit p-uI alllini■ planned in Britain, at a » hen i'Ximi t trade has declined. I m. !_• 11l ..-giv.ngs to 111.1113 investors. Dull- I mss "ii London is inevitably refh-ctedl 111 A ,1.1.1 and to a letter extent ill New I Zei'-uid. Tin' Com moii weal tli, like New Xe.ii.iiiil. i.- incline the issue of dealing with ill. : eased expenditure at a time that export ■ o\ ell l|e ;s declining. I j 1 " Dominion has its own external I ic ■ -i• 1 • !iis- in th t . sharp decline in its holdin-' of Londiwi funds, and the fear of ;n\c-tois tli.it our manufacturers will not be a:,b. p. meet the added costs of prodll' t i.i'i that aie now being felt in their i nine'c without raisins prices and tie ii'l.v risking the lns« of a portion of then- turnover. Thin difficulty ha« been sii-kiiv.'lx ii;~t nice.| in the c.u,e of the " • !l iiidu-t i week it was mcii- : ■!' I i:i iie-.' columns that, all the lead- ! 1 on.:i.lines of the Dominion, namely. ; ' h" K .I ipi'i. Mossiel and I 1 ■ 1 1 '• ■'. had shown reductions in protits. i »hih- t ie O.on.nil company had recorded .'. f- - i'i.-'..nt i,i 1 hiss. Since then another in ,'h" s. 1111 • • industry. Manawatu Knittin; .Mil's ius issued it«s accounts, and these - -.v a '..s< in L'lW. compared with a pi "lit oi l'.'!7!T> (h,. previous year. Fixed Term Securities. I weakness of the market was unmist iA,ibl\ denionst i a ted in the section deal- | ill with Government stfs-ks and hval bodc debentures. There were reasonable mrpiii ies. but selling pressure was no stum.; that purchasers had no difficulty in obtaining I eijuireincnts. and occasionally o! it a in in/ i nit her concessions. An instance in :irs connection was the sale yesterday of 4:: -hi 4 per centn, which at £98 10/ showed a drop of 10'. Based on redemp'i"ii in I'll. 1 ?. an<l allowing for accrued interest, the new purchaser will receive on his outlay an interest yield of over £4 l.'l per cent per annum. \\ it h such rates as these available from (;.i\o nnicnt stocks, there was little induceme'it t..|- :ii\it-?iiis to take up local body dcbi-ntin es. of which there have been very fiee olici ol's in 10'cnt weeks. Actual Was I on fined to a few jiaicels fit" A 11■ I-.I 111 d Harbour Board and City of I A'ii ul ; lei. which showed returns to the puiihi-.r u: iroin tV* to 4V4 per cent per a nniim. Banks and Insurances. Tn tin. banking section Xew Zeal.mils Weie stead', between 40. .10 and 40 !>. but 1 he ll \l oi t za/e shares sli|ipe<l further and si!his.it u'li (> > f-sterday looked in vain for Inn ers. Nationals failed to rally, ami a Hew low level was established, with business at 4«'. A us! i a 1 iau issues attracted little interest. insurances moved with the peneral trend: that is, downwards, Xew Zealands. South Bi it is li and Nationals all changing hands at lower rates. Mining. Even the continued firmness of tlie gold nias kct. failed to infuse strength to the mining division, and very little business was put through. Three Australian eonMount Morgans. North Kalgoorlie an.! Ti itim.--. almost monopolised the husi-th'.-s. a single sale of Marthas at 10, 9 providing the solitary exception. I Australian Issues. Turnover in Commonwealth industrials was smaller than for a considerable peiiod. The market was definitely weak, and practically all business was transacted at lower levels. Broken Hill Proprietary slipped back to £2 16', while neither Electrolytic Xini-s nor Mount Lyells appeal I'd on the sales sheet, despite slight concessions by holders. Such strong favourites as Colonial Sugars and British Tobaccos also sold cheaper. T.O.T preferences were steady at 22 11 and Huddart I'arkers at .50 9 showed a rise of 2/6 since September. Dominion Securities. S.ile-s of miscellaneous Xew Zealand! issues were more numerous than the previous weik, but the bulk of the business was done on a falling market. An instance I of ih" weakening trend was provided in I the case ot Auckland CI as. tile contributing shares changing hands at the record low level . if 12 n. I In the Brewery section Dominions were' steadv at last week's reduced levels, hut ' Xew Zealands dropped nnother shilling, with business at .*>B/9. Wilsons Cement were 2.1 cheaper ;it and McTCenzies at ."ia 6 Were 1 (i down. There was quite a flutter in Taranaki Oils, which slipped rather suddenly from 11/9 to 9/ upon rumours from Oisborne, whicli were afterwards discredited. The officials issued a statement to the effect that boring was proceeding according to schedule, and ru iei's lecovered as quickly as they had fallen, and final rates yesterday saw the price back to I' 2/. LATEST SALES. Siles since last review have been as follows: Banks. Xew Zealand, t'2 O'lO f.")). £2 o h'j. C 2 <i 10 tj2 ll !): National. £2 8/: N i ■. S- utl| Wales, t'.'ili ."i : Xew South W ales. S.v -!ue.\ leg.. £2!) l.">, ; Australasia, £!) 17 li. In-sui ances.- New Zealand. £2 12'3 fa); X.i'ion.il. !."i 10; South British. £2 3'. ( love! ninent, etc.—Stock: la 2/43-46, 4 per cent. £99. £98 10/ C2l: 1.V4'46-49 . 4 per font. €98 a': lo 6 52-55, 4 per cent, £98 10/ (2); 15/5/49-62, 4 per cent, JEB7 i

(.'-i; March 39-43. per cent. ,LOS 2 (j ' i'9B, A' 97 12 ti. £97 la . £97»12 ti: Seplcm ber, 39-43 . 3Va per cent, i'!) 717 ti. Auck 1 land Harbour Board. 0 7 ,>S, £ 101 In City of Auckland. 1, 1 44-.V2. i_" 11M1 12 li City of Auckland, 1 1/44. £1 <k 1 pi ; Wal kato Carbonisation, 14. ti 40. £9.~i. i Mining.—Martha. 10 9: Mmint M , an 9 (i (21; North Kal;:oorlie, £1 3'; Tiit.m 10.9 (21, 10.7 (3,1. Dominion.—Auckland Cias. 18 7, (emitri' ' liutinji) 12 ti; Consolidate,! Bi ick. 7 I' ' 21. 7. j (2): Devonport Kerry. £ 1 0 0: l).,:n;n ion Breweries. £1 12 (j, £1 12 7';, f I 12 ti: Dominion Fertiliser. £1 .'I (i; li..n-1 O'Brien lex divi. 14 Macluii.. 4 : McKenzicv. t'2 I" 1 l>: National T:oil,ei . S : New Zealand Breweries. £ I 10 li. £1 10 '. £1 18 (i. £1 IS •>: New Zealand Newspaper. £1 11 : Taranaki Oil. II 0. lo ,2i, ■ o'. 01. ]0 . 10/1. 1(1 2. 11l li. in 11. 12 ; Tiader?.' Kinanie (con.l, 4 (i; W'i'-.nS (el 11 ell t Iti !•") I. Australian, etc.- Alio'.' Steel (Au-t 1 S British Toliaco. £2 7 H: B|,.kei, llii: Ti'oprietiirv. l' 2Hi 3. t'2 la 0. t'2 id 1:> 1: Colonial Sn-.'ir. i' 47 i 7 •!. '.47 I. .;47 10 : Henry .loiies -liv.i. *22 0: 11; I.i----11 a 1 t Pal ker. >22 lo 11; I .C. 1.. in , U 1 2 11: Woohvortlis TToldinss. 14 S; worths iSydnevi. <2 1(Ilo 1 : „,] , v ~, ; | )s Properties. £1 4 1 2 i2i. £1 ,"I'o. RECOMMENDED. DOMINION BREWERY SHARES. The ordinal v sinus of Di.iniii'on I'rewcl ies. Limited, are le, ,in, 1■ 1. i•. |,■, 1 as a .01111,1 invr*it in,-nt the lea.on.: Tli" sliaii-s aic Ya-iicl .»n i',--market to-,|-i\ at 32 li. J■ 1 ~:i ;!:■.• 'a;.'.; dividend rate i.f 11 pel cent per aiiniiKi tiiis a return on ~nt!a;> o: jnsi ~\c." Cr'4 per cent per anunni. From a secuiity p,.i; 11 of \ : ,-w one f. 111 • 1.1.1 invest i^.lie the !al,r-! bil.in li el. which shows 11 ia I at Ma' 1 -11 ;;i !a.i I•,t ,! ii.sctsstoi.il It. L'4s,i.7>;7. r,,. j'-ltmi i 1 c!u.J----!11 _r t' 10.1 i'i' 1 ,i- ■/, ,0, i'a i!!. I !•;'.- :1 ii I, Stood at £141.4.17. |)is!e-.M!'.lili_' the V-'-11, of goodwill, mt tangible a-: r- ~v, r ~u' si, I e 1 1.l 1 ii 1 11 I' .s ..! 1,, w Ilia I 11 I,;' X I li for each 01,1 i 11111 y .ha le. The lialance-.heet tot.,; ~\,-r C Kii.iiim is ii.ileuoi tin when j| j. , , •>,. . :| , 1.,.-.. ] a-> 1 with a capital ..f L' 7" ,'H ■<>. F..11 11 on' cap.l. in i< .h,.■ •■ 11 in ;!„• f.,'lowiiiLT table U'ivi'r.' le.i/ls sir,, c the company's I<■ 1 mat i• > 11: I'f.'lits, Hivi.l. n,|. • if...., .Vet. Am ,1111:. V"ar. e e p.,-. 1 1:n .. 1:• :;;i;: 1 :;;cj 10:11 :i2 .. 20,1 :(7 1.1,1 1 — __ 1032 33 .. is.ii.il I in,,-* __ 1 '■'< t .. 'J7>r,i - — 10:: 1 ir.i t.iut - - H'-j-yroi •• i',2.>'.4s 1 .",.221 r,\ .-.sit, 1 "-I-I7 3S .. livi;cj 111 22 1:!.^ •I.oss. From the i; will 1.,- • : ; ~t I the company snlTeied in ii. .~t >. as a collseijuene,. of jt<-= o!a I,!i..iini.-:,t c,,aiI with the sliimp peiiod. 11.,w. the directors never lost faith in t'ei enterprise and pursue,l fl vi-_'oroii.s 7>,,!';,•> of expansion that lias been ainaidati'Jv justified in the results. I'roirress has been exce)itii.na!lv iapi,|. and the company now cnfiol. ~\,■.,■. 4,1 hotels ill various ceiitles. Its nil';, 11 constantly inci and tiieie little doubt that pintits continue to justify satisfactory divi,leu Is. Following tile last annua! nieetiiiL' the directors secured aulnoiil'. t ( , In ..a.,. nominal capital 11 0111 £2."i0.u00 •■, Siiii'o then ."O.PfKI new til sline. \ s . s , - 0 lie! Ed to >'■ ;: •I:—'■ 1- : . ,i premium, and vaic pr •,: 111 ■•: % ... 1 1 bed. I]l is is Ihe i',,.:> r,■ _• 1* 1 il. I>l|l ted li\ the 1,0.1 id. I'l s, in- :'.-. ■ , capital I'l oil) time to the .:: 1 .fix the price of the new .'liale. at a I':•:•■■ well below what appear, tn 11:1: rate, and offer them lo exi-fin: ireholders. who in this ivhv re: .01 t selves the protits of a ra;.idi\-cXi,.,ndiii f : busineee. TREND OF MARKET. The folio winz table indicates the fluctuations in the valine o; v.nions securities:— BANKS. Dec. 22. Nov. 23. Dec 2 1037. l'l.'js. 1;,; . ... £ s. d. £ s. ,1. t ... .1 A asia ... loir, o 10 o o ;i 17 1; f'omnipreinl 017 0 o 11; 2 ii 11; o K.. S. & A. Ti 7 6 tr, 111 o 7 ,1 Nat., N.Z. . '2 15 0 ;■ s v (l Naf Aust. 7 11 li '1; 1.-, o .7, lr , ,i N-S.u. .. .'l2 17 II .'in 17 1; nil o o V Zealand 2 4 o 2 o '.1 2 o '1 Cniun ... tl ti 1; sll il ,s 7 i; MISCK.I.I.ANK.i il'S. s. d. 1; ii c « ,1 N.Z. In.ur. ;i 11 -j u /~, S. lirit ish . *2 s '.1 ;i 1; -, • iol.ls. M. . 1 1:; o *1 S !, .f i; C, lirili.li Tot,. -J 10 1; -. n I, ■> 1 I'.n.ke,, Hill ; 1 -J 17 u. ' ' I*i lee. Zinc 2 7 o 2 ii 0 •} ;, 1, I pref. 1 2 7 II 2 S r, So Aust. lilass 4 IL* 1; I I'i 1 n ~ Mr. I.yell 1 Ti ti 1 o i. , ~ V'l'Su-ar 47 In .1 47 17 1; 4'i 1", o .\iiek. lias 1 1 n 11 is: o I, Wilsons c. 11 17 1; ~ ~ N.Z. Brew. 2 li li 1 1!i p 1 1s o 1 >"111. Brew 1 Itl :i 1 I_. r, 11-' i; Farmers' T. 1 11 o 11 |;i 5 ;; GOVF.KNMKXT stuck. - S. ,1. C ,1 e ,1 H'.".2 . . 102 10 II ~ o ps 10 o Ili I M-1 1; Iti.'l o 0 titi n ,| S i n ~ 10.-,3 57 . OS 5 o ti:: 2e, i,;j o •Nominal. fK\ interest. NEXT HARVEST. ESTIMATES FOR 1938-39. (By Telegraph.—Tress Association.) A\ KLLINIi 1 ON. Thursday. ihe estimated retuins lor wiieat. oats and barley this year, ion 1 pac,l « : th the actual returns for the past, harvest', show a decline in the aereae,s of wheal and oatu, but a slight increase in i 1,,. case of barley. The estimates are contained ill a return hy the Ciovemnient Statistician and appear in to-night'.s "(Ja/.e'te/' Ihe total area sown in wheat for tin--1937-.'JB season was 191.842 .u les while the estimated area lor 1030 tola Is ISS.ihio prised of 3200 acres in tli,. North island and 18.1.700 in the South Island. l i,,. 11 in oats in ItK>7-.'>B ,is 7<i*> jr . , K while the estimated total for" the 'present' season is 2*3,000 acres, comprised' ! 13.000 acres in the North Island -,„,i I 2.)(l.000 111 the South Island TI "b-u lcv ! acreajre last year \vas 31.1,0| j the intimate for t.'iis \..,ir 33.70n prised ot 3200 acres in tiie No' th |<i ' and 30,500 in the South Island. "" '' Ihe area iilanled in polaloc.. ! ~1 V e „• w;as 23.090 acrrv, .">442 aci.... i„.j lu j, ',t North Island and 17.01S in Ihe South Island, while tin- estimated ~. ~ . 1 . j year is 20,01K1 acres. .WOO* .ni cs in the North Island, and 14.700 in the 5,,,.,]' ! Island. ' ' ,