THE WEEK REVIEWED.

Auckland Star, Volume LXX, Issue 105, 6 May 1939, Page 4

THE WEEK REVIEWED.

| SUDDEN CHANGE NOTEDPESSIMISM TO CONFIDENCE. I WAR SCARES IN BACKGROUND. ALL-ROUND IMPROVEMENT. A marked change for the better haa taken place on the local Stock Exchange | Mnce last review with almost all classes lot securities benefiting. The main factor j has, of course, been the sudden uplift on I the London market, where the opinion is gaining ground that dangers of war at an early date have been materially lessened by the happenings of the last few weeks. During the week pessimism on the part ot investors in London has given way to welcome confidence and a wave of buying has set in. Government stocks have partially recovered the recent losses made [and the rush to convert securities into j gold ami send the metal to America has I ceased. Ihis is given as one of the reasons I lor the Rank of England's note circulation advancing by £j.000,00<) in the week. Ilio iaynm able reaction to this move- i ] nient brought further firmness to leading I Australian securities, but the improve- | nient was much more striking in the case 'of a number of Dominion issues, which registered the most notable advances in 111.my mouths. I Bank of New Zealand Advance. j In the banking section chief interest I ccu'.red in Rank of .Now Zealand shares, .which started the week at 37/ and finished 11 1' £-• Despite the 3/ rise, | tlii'M." shares should still be good buying tor a halt-year's dividend is due iiext month and the current rate of 10 per cent per annum, which 'hits now been regularly maintained for several years, gives a return on outlay of 5 per cent per annum. Next in general interest was ( onimercials, and these moved up steadily lrom Hi to It!'!). Oilier bank shares were fairly steady, I though recent easing in Nationals was confirmed with business at 45/8, after which a later transaction was recorded at 4d higher. Insurances. A feature of the insurance section was

| <111 inquiry tor Queenslands, which resulted I If a sale at £2 19/(5. the first for a coni sulerable period. _ Last year's dividend i ; was at the rate of 9'/z per cent, so that I 1 0 ' )U !. , ,' la ' vel ' w '" receive slightly more than £3 3/ per cent per annum 011 his outlay. The Queensland, which has its headquarters in Sydney and not in the north Australian State, is an exceedinglyprosperous enterprise with exceptionally strong 1 eserves. j Local insurance issues had steady business with little change in values. | Fixed Term Securities. ! Jheic was a regular demand for practically all issues of Government stocks, 1,1,1 buyers retused to raise their reserves .and only moderate business was put | through. Any sales finalised were pracjtically all at late rates. Towards tbe | c.ose of the week there were few sellers i ami it will not be surprising if there is I a slight firming in this class, though any major change is scarcely likol.v before the Government has announced details of its pending internal loan. With gradual lessening of supplies of Government issues there was a fair inquiry lor local body and trading deben- ! ttires. which were offering freely, | especially fit the latest calls. Auckland j has debentures were in regular demand .at £102, Amalgamated Bricks changed hands at par and Waikato Carbonisation •debentures realised £96. Australian Issues. As an outcome of the more confident outlook in the world markets, leading Australian issues made further gains, but actual business was naturally restricted by the difficulties of securing transfers in consequence of the exchange embargo. This has resulted in a further widening of the gap between Xew Zealand and t Australian valuations of the same .securities. Following the previous week's 1 trend. Colonial Sugars touched a new high level, with business at £51 5/ and A.C.l.'s (Australian Consolidated Industries) moved up to sales at 35/6 and 36/. | 1 his advance was prompted by the publij cation of the company's accounts, which I showed that the company, formerly known as Australian ('lass Manufacturers, had earned the record profit of £324.512. It seems evident that the directors were Iml.v justified in the generous distribution •they made recently when they allotted as a bonus issue over two and a half million fully paid shares to their ordinarv : shareholders. | Gas Shares Higher. • 111 a fj"iy. general improvement in Dominion industrials. Auckland Gas, 1 which had slumped badly in recent weeks, j led an upward move with sales at 15/11 I and 1(5. 3. compared with 15/ the previous [ week. Subsequent buyers at 16/(5 failed to supplies, lowest sellers standing out for 17/. A striking recovery was also noted in Dominion Breweries, which had unaccountably slipped back to 28 9 These changed hands first at 31/6 and later at 3-/. New Zealand* were also firmer with business at 37/9 and 38/. Apart from the issues specially mentioned there was a fair turnover with a diversitv of enterprises represented. Consolidated Bricks moved up from 8/10 to 9/. and Robinson

I Jf ; e ' 'hanged hands at 23/6. while buyers ot 1 aupiri Coals raised their offers to" 16/ without tempting holders. Accounts and Dividends. Dividends announced during the week | included the interim by the Westport coal j company which at 6d a share is unI changed, while Bycrofts directors are recommending the usual 4 per cent, making 8 per cent for the year. This company, whoso shares were recommended in these columns last week, has evidently had a Stood year and profits, despite heavy expenses, show an increase. In order to cope with expansion of business the directors propose to make a fresh issue of 2-i.0.Kl shares, winch arc to be offered to existing shareholders at par in the proportion ot one to every five at present held vrtr »r Cp °r t ,HS " P ' I bv tl,c directors of M.K. Manufacturer* disclose a substantial oss. namely £4983. which is attributed by the chairman to management causes ihc report claims that the business is now on a satisfactory basis. The 5/ shares had sales early in the week at 5/3 and yesterday were quoted between 4/3 and Donaicrhy's Rope and Allovs Steel (N Z 1 both returned substantially increased profit*. TREND OF MARKET. The following table indicates the fluctuations in the values of various' securities: — I

J 1H«? 7 Apr!12S - way 5. I 1038. 1930. 1039 1 * s - d. £ s. d £ s d ■ A'asla .. 9 15 0 0 7 6 0 7 6 Commercial 0 16 o 0 16 3 0 16 9 E. S. & A. 5 2 0 '5 5 6 5 5 6 1 Nat., N.Z. 2 6 3 2 6 6 2 6 0 Nat.. Aust. 0 15 0 6 12 6 6 1*> fi N.S.W. . . 30 12 G 30 10 0 30 10 0 N. Zealand 1 IS 6 1 17 0 2 0 0 Union .. 8 12 6*8 00 800 MISCELLANEOUS. v - _ T £ s. d. £ s . d . £ g. d. N.Z. Insur. 2 14 !t 2 1" 0 *> 13 n S. British 2 S 5 »2 4 6 2 4 6 Golds, M. . 1 9 0 *1 9 0 19 0 Brit. Tob. 2 S 6 2 11 6 2 11 6 Broken H. 2 16 9 319 3 *> 5 Klec. Zinc 2 •""> f, 2 *1 0 2 0 0 (prof.) 2 !> fi 2 12 6 2 1" 6 Aust. Con. 5 10 0 1 15 fi 1 lfi Q Mf. Lyell . 1 fi o ISO ISO <'ol. Sii'_';ir 47 5 O 49 IO O 51 r» o Au<k. (Jus 0 19 0 O 15 0 0 lfi 9 Wilsons C. O lfi 0 O lfi fi 0 17 o N.Z, Brew. 210 117 3 1180 Pom. Brew. 1 12 0 1S9 1 12 0 Farmers' Td 0 18 4 0 18 3 0 18 61 GOVERNMENT STOCK. I £ s. d. £ s. d. £ s. d. ' 19o2-55 ..99 0 0 98 12 6 98'10 0 1934-46 . . 99 10 0 98 12 6 98 1* 6 1953-57 . . 91 10 0 91 10 0 91 10 0 •Nominal.