THE WEEK REVIEWED.

Auckland Star, Volume LXX, Issue 165, 15 July 1939, Page 4

THE WEEK REVIEWED.

BUSINESS BRIGHTER. INCREASE IWT TURNOVER. LATE VALUES HOLD. GOVKRXMEXT STOCKS FIRM. Peven days have passed without a new war crisis developing and, as a consequence, the investment markets have pained a measure of stability. This was evidenced in yesterday's cables giving London Stock Exchange quotations which showed an improvement in values of British Consols and stocks as well as of a number of Colonial issues, including Xew Zealand. Turnover on the Xew York Stock Exchange during the la.«t row days has been at a much higher level than it was a week ago and it is reasonable to assume that the extra business has come through recovery of OBnrldence .m the part of buyers. With this external improvement as a background it is not surprising that the local market made a substantial recovery from the unusually poor conditions which had ruled the previous week. Actually, recorded sales were up fully 50 per cent. Apart from numbers the market generally had a much more confident tone and values, on the whole, were firmly held. A feature of the market was the ken demand that continued for (;overnni°nt stocks. At every call there were buyers for almost all issues, with only nn occasional seller. If this trend is maintained a rise in prices will naturally lollnw and this seems to be indicated by the fact that one of the two issues which formed part of the Government's U4.500.0CM) loan, the 1948 4 per cent, 'hanged hands at £99 10/. As there is about 'J/6 accrued in interest it will b<; ■■eon that sale was practically at issue price, hicic were several sales at this figure. The interest return to the present purch.iser is approximately 4Vs per cent per annum, whereas the return on older (fin-t riiment issues lias varied from iVt tn 4 : 'k per cent. It must not be forgotten iii.it th.. (Joverninent's latest issue, contains fonip e-nrcial provisions which may be expected to bring them a measure of preference. The recent substantial issues of local nii.lv loans do not appear to have piejuil.i i"il the market in this section ai, 1 business in Auckland City. Auckland Ti.iii.-jniit Board and Mount Eden Borough Council debentures was transacted at about recent valuations, showing a return to purchasers of about 4% to 4"i I"-i ■■cut per annum. Here again, the c'..\ !.-s'ies are relatively cheaper than the in w nip's, which carry interest at 4 n .» I'll , cent per annum. Banks and Insurances. Across the Tasnian the fear of higlrT taxation t,, provide for interest on tile liMurt , 1 o.i u programme amounting to almut £4n.l)i>n.oOO that has l>ec;i announced to provide for defence and ..(her public works and the portability Ml a general election at an early tl.iie app.Ml-μ to have been offset by tilt! unproved international conditions and tin: sharp use in wool prices. Sydney and .Melbourne Exchanges have been more active .md tins haw been reflected loca!iy. albeit actual business is seriously cw.tailed by the exchange embargo. There were regular buyers for most Australian banks at each call. Xew. South VV'aIPS sold .V lower at £30 10'. but Commercials gained 7d in the week with final business at Mi'lo, after which sellers raised their reserves to 17/. A line not often quoted locally is the Bank of Adelaide. The shares are £U) unite paid to £5, the other £5 being a reserve liability. Paid capital ,s £1,250,000, and reserves total over £1,1)00,000. Profits for the j ear ended March 31 at £7i,121 were the highest since 1931 and the dividend rate was laised from 5 to 5V4 per cent. A buyer cauie in on Monday and stayed in ;i\ the week at £."> 15/, but no seller responded. In Sydnej it has been priced this year between a low mark ot £5 1"' and a high at £«. New Zcaiamis were rather quiet ii. the rally part ol the week, but quic.;,\ lospoiidcd to a generally inipioved lone at the i'.osc witii business lid up at c$ :). Nationals had theii first sale .•.inc.- tl'o jinal d.viciend was paid, a puichasi-r securing a parcel at 44 9, compared w.t.i Hi. :!, cum. dividend.

Jnsuiances, like the banks, finished thneck cm a stioniiel note. Alter busine-s (Id up at :>l/. New Zealand* had a inark.-t between :>l <i and ,"i2/«, while Sout'i British gained 1 li in the week with final sale at 4.'!/. Nationals. Queensland and were all in request J csteiday, with no sellers in fight. Australians Firm. Despite the fact that the majority of Australian companies are earning less profit than in 1938, investors in the Commonwealth evidently have abundant fa:th in the lutuie, for whenever there is a lift in the clouded international skies the values or their securities appreciate immediately. There is plenty of evidence that the leading industrials are exceptionally busy. The big steel manufacturing concern. Broken Hill Proprietary, has just concluded a record year of production and Broken Hill South, while treating a lesser tonnage of ore. has produced more silver, lead and zinc than iu the previous >eur. Unfortunately for the Barrier companies, the lower prices that have ruled ;or theee products are bound to pull the • lofits down. However, the directors oi Electrolytic Zinc arc evidently satisfied with the appearance of their accounts, which closed on June 3<>. for they have announced their final dividend at the unchanged rate of 9 per cent, making l.j per cent for the year. Practically all'the main lines registered advances and are now priced at the highest level of the present year. Broken Hill Proprietary sold up to 60 9. a rise of 12,9 since January, while Electrolytic Zincs were in demand yesterday at i>2, for the ordinaries and 57/ for the preferences, without interesting holders. Colonial Sugars have benefited by the rise in the world's sugar markets and changed hands at £50 for the £20 shares. while Goldsbroughs reflected a rising wool market with business at 28/4Vi. compared with last week's valuation of 27/. The announcement of the final dividend and bonne by the directors of G. J. Coles resulted in a firming of the shares and they were quoted yesterday between 79,6 and 80/6. The ehares of the well-known Island trading company, W. R. Carpenter and Co., attracted unUSual attention and several parcels changed hands at 44/. The shares are £1 each and a 10 per cent dividend. Dominion Securities. Considering such bearish factors as the unsatisfactory position of the public finance, the unsettling effects of the import and exchange restrictions and, by no means the least, the distractions emanating from a Parliament in session, the market for domestic securities held up very well. In this connection it should be emphasised that the people as a whole are well supplied with funds and the worst effects that may be expected from legislative makeshifts are still in the future. The country"s exports, too. have maintained a higher volume than appeared likely a few months back and this should ease to some extent the Government's great problem in regard to building up sterling funds. In recorded business, which attained moderate volume, there were no outstanding features. Gas shares made a partial recovery, with sales from 16/6 to 16/11. and Farmers' Fertilizer moved up to 18/. Farmers' Trading were fairlysteady between 18/3 and 18/2, but Wilsons Cement were easier with a market iistween 16/9 and 17/.

LATEST SALES. Sales since laet review have been as follows:— Banks.—Xew Zealand, £1 18/4, £1 18/3, (2), £1 18/9; Commercial, 16/3, 16/6, 16 10 (2); Xational, £2 4'l>; New South Wales, £30 10/ v Insurances. — Xew Zealand, £2 11/; South British, £2 2/, £2 2'J (2), £2 3/. Government, etc.—Stock: 15/2/43-46, 4 per cent, £98 15/; 15/4/46-49, 4 per cent, £97 12/6; 15/6/52-55, 4 per cent, £95 10'; 30/11/48, 4 per cent, £99 10/ (2); Auckland City, 1/1/44-55, i l /* per cent. £07 10/; Auckland Transport Board. 1/4/4150, iV* per cent. £98 5/, 1/4/44-49. 4% per cent. £98 10/: Mount Eden Borough Council. 1/4/42-46. 4*,4 per cent, £OS. ] '4/47-52, 4V* per cent, £98. 1/4/33-58, 4% per cent. £97 10/. Mining.—Martha, 9/9 (2); Emperor, 10,4 (2); Loloma, £1 4/; Mount Morgan, 10/8. Australian, etc.—A.C.l., £1 IS/. £1 IS '3: Broken Hill Proprietary. £3 8/ (2): £3 9/9; Colonial Sugar. £;>(); Felt and Textiles, £1 11/; Goldsjroiigh Movt. £1 7 6. £1 8/414; G. J. Coles. £3 38/0. £3 10/. (rightsi. £2 11/ (2). £2 11/3; Henry Jones. £2 14/ (4); I'ar-.niki Oil, 6 5. 6 6 (3l; YV. K. Carpenter. £2 4/ ("■): (Sydnej !, £l 4/, £1 4 1: Woolworths I'roperties (rights).. 1/8, 1/7. Dominion.—Auckland (Ins, 16/0 (2). Hill; Consolidated Brick. 8.'4, Claude Neon (N.Z.I. 18/; D >minion Breweries. £1 13/ 13): Farmers' Auctioneering. A pref. £1 o'3. B prrf . IH/; Farmers' Trading. 18/2. 18/3 (5). 18'2. B pref., If: Q; Farmers' Fertilizer. 17/9, 18/: Dominion Investment, 16/6; Guarantee Corporation, 4/; McKendrick Bros., pref., 15/; M.K. Manufacturers, 5/ (3): X.Z. Drug, £3 8/: X.Z. Newspapers. £1 12 9; Peid Rubber (15/ paid}. £1 3/; Taupiri Coal, 17/6: Westport Stockton, pref.. 8/; Woolworths (X.Z.I, 17' (2), 17/2; Silknit, 3/10; Whakatane Paper, 4/1. TREND OF MARKET. The following table indicates the fluctuations in the values of various securities: —

Jan. 27. July 7. July 14. 1938. 1939. 1939. £ s. d. £ s. d. £ s. d. A'nsia 0 15 0 0 O O 0 ." O Commercial o 16 i> 0 16 3 0 lfi 10 K. S. & A 3 2 6 4 19 9 f4 19 9 Nat., N.Z. 2 6 3 *2 5 0 2 4 9 Xnr.. Aust. 6 l"i O t6 17 6 f6 17 6 NSW. . . 30 12 6 30 in 0 30 10 O X. Zealand 1 18 6 1 IS 6 1 18 I) TJnlon . . 8 12 6 t8 0 0 8 0 0 MISCELLANEOUS. £ s. <1. £ s. d. £ s. d. N.Z. Insur. 2 14 9 2 10 6 2 12 0 S. BritUli 2 3S 2 1 fi 2 2 9 (iolds. M. 1 9 0 17 0 18 4 Brir. Tob. 2 S 6 2 11 3 2 11 3 Broken H. 2 Iβ 9 3 7 0 3 9 6 FAcr. Zinc 2 ."i 6 2 10 9 2 12 6 (pref.l 29 6 2160 21R0 Aust. Con. 5 10 0 1 18 0 1 18 3 Mt. Lyell 16 0 17 6 17 6 Cn|. Susar 47 5 0 48 10 0 50 10 0 Aurk. Gas 0 19 0 O 16 9 (I 16 11 Wilsons r. ii io o o 17 3 o 16 io N.Z. Brew. 2 1 0 1 Iβ 10 1 16 10 ])oiii Rrew. 1 12 0 1 14 3 *1 13 0 Farniprs'Td 0 18 4 *0 1R 3 0 IS 2 GOVERNMENT STOCK. £ f>. a. i s. a. £ b. d. 19."i2-."."> . . fl!l II O 95 10 II 9."i 10 I) 11134-46 .. !l'.i 1U 0 9S 12 I". i)8 17 *5 in.">3-.">7 .. 91 10 0 90 1T> 0 9O I." (> 1948 . . — — 99 lu 0 *Ex dividrnd or interest. fNi.mlnnl.