THE WEEK REVIEWED.

Auckland Star, Volume LXX, Issue 219, 16 September 1939, Page 4

THE WEEK REVIEWED.

WAR CONDITIONS.

RECOVERY IN VALUES

METALS AND MINES STRONG

LKAD TAKKN FROM AUSTRALIA

Another week under war conditions has passed and brokers have been agreeably surprised at the comparative stability that has already been reached.

Alter Sutunl ay'.s L-liJcing, liiusiiicss on I lie Monday was almost at a standstill • iiiil. with the noon eall completed, only a i-ouplc of sales had been recorded. Then came an improvement, gradual at first, which gained acceleration very quickly, hncoiirnged by the optimistic tone of the American market and growing strength mi Australian Exchanges, the tiny trickle ot buyers who came forward with furtive oilers the previous week soon swelled to a stream ot substantial dimension*:. This market recovery was at first mainly coufined to .Australian leaders, but before the week was out inquiries covered a wide scope ot secutities. At time of writing there is still a large number of approved local industrials for which there is no buying inquiry, and values all round tend loner than before the declaration of war, but the position in this regard i« steadily impi o\ ing. I hi' only change in the fundamental ta, tors that must dominate the local markets is the move on the part of Great Britain to assure herself of full supplies ot toodstulTs and wool from Australia and Xe\v Zealand. At the moment it seems likely that negotiations will be completed to soH the whole of the Dominion's output of primary products at prices that u ill be considered fair to the farmer. It may well happen that Xeiv Zealand's revenue, instead of being curtailed, may be increased as a result of this terrible war. but it seems just as likely that any additional benefits that might arise from wholesale deliveries to Great Britain mav be cancelled out by additions to public expenditure, which had already assume,! alarming dimensions and will now have to bear the brunt of defence maintenance.

I" this connection the statement issued yesterday by Mr. Xasli. in which be forecasts additional taxation, will scarcely have taken the market by surprise. Company managers will be apprehensive i" regard to the possibility of additional public burdens, which already exact more than hall' the net earnings of the average business. Even if they should escape lurther direct imposts they will get the impact indirectly through the decrease in the purchasing power of their customers consequent upon heavier calls from the State.

It is clear, and the fact will become increasingly evident as time goes on, that, apart from the actual fighting, apart from the poignant suffering inseparable from warfare. New Zealanders will have to bear a tdiare in the economic deterioration that follows. It is in such times as these that investors have the opportunity to realise the value to the community of well-established enterprises whose financial position had been steadily strengthened year after year when conditions were favourable. Fortunately there are many of this class in the Dominion and thev provide a safe depository for surplus funds and are at the same time an invaluable support to the State. Fixed Term Securities. With the general outlook still far from settled, it was. not surprising that special attention was given to Government stocks, which had a faitlv free sale with only slight changes from recent values! The desire for a tixed rate of investment lor a fairly long term was also shown in the demand for local body and trading debentures, which had more business than for some time. Mines and Metals. 1 ndoiibtedly the leading factor in the local niaiket recovery was the reaction irom Australia, where the strength of the metal and gold maikcts was reflected in sharp rises in such securities as Electrolytic Zincs, Mount Lyclls. Broken Hill Souths and North Broken Hills. Mount Morgans and the Fiji gold mining enteiprises also attracted special attention. Mount Lyells went ahead by leaps and bounds to sales at 35/ and 35, 3 on Tuesday. showing a rise of 0/ in the week and loading the highest levels registered tor over a twelvemonth. Profit-taking cheeked further advances and later offers to sell at 34 3 found best buyers back to 31 /.

Demand for Commonwealth Industrials was not confined to purely metal or gold producers. Broken Hill Proprietary, which mines indirectly through its associations. but is chiefly engaged in manufacturing, had considerable business between 74/0 and 72/10 and Australian Consolidated Industries recovered .1/0 in the week with business at 37'. Goldsbroughs were slightlv firmer, though no sales resulted, anil Woolworths (Sydney) were active between 22/9 and 23/0. Banks and Insurances. In the banking section au encouraging leatuie was the steady demand for shares of the Bank of New Zealand, which changed hands at 38/ and .18,,1. This is only 1/3 below the price ruling when war was declared. Nationals, too, wore fairly nteady and had a market yesterday between 45' and 47/6.

Australian banks were almost neglected. Commercials were in regular request, but buyers were looking for a bargain, yesterday's best offer being 14/3. This is a penny better than the previous week, but is 1/6 below the pre-war valuation. Insurances were in steady demand and for these buyers were prepared to pay right up to recent quotations. New Zealande at. 53/ were a shilling higher than a fortnicht ago. Yesterday there were buyers for five issues in this class with a seller in only one. Dominion Securities. Instances Confirming' the confidence of buyers in local securities included sales of Auckland Gas at 15/, compared with 14/0 the previous week. Wilsons Cement and Milne and Chorees each at 16/0 anil Bycrofts at 35 6 were all unchanged. Brewerv shares continued to ease and Formers' Trading slipped back to 17/ for the ordinary and 13/ for the B preference.

Coal shares were weaker nnd Taupiris were transferred at 16/6. a drop of 1/6. and Txenowns. ex dividend of 10d. at 8/1, compared with 10/6 cum. dividend.

TREND OF MARKET. The following table indicates the fluctuations in the values of various securities: — Jan. 27. Sent. S. Sent. 13. 11)38. 1030. 1030. £ s-. d. e s. d. £ s. rt. A"nsln .. 5 15 o ff> 0 0 ff) 0 o I Commercial 018 0 014 2 014 (I MO .S. and A 5 2 0 +4 17 ft t+ 17 O ; Nil f. N.Z. 2 fi 3 ii 7 11 2 0 fi i Nat.. Aust. o ir» or, 17 r. +r, 17 r, N.K.W. .. 30 12 fi 27 in 0 20 2 fi N Zealand 1 IS fi 1 17 10 1 IS 3 I* 11 ion 8 12 « +7 10 0 *7 Hi o MISCEM.ANKOt'S. ( s. d. K s. d. C s. il. NZ. liisur. 2 14 0 2 11 « 2 13 O S. British 2 3 5 2 1 fi 2. 2 n fields. M. 1 0 0 1 8 fi 10 0 Brit. Toh. 2 8 fi 2 8 0 2 8 fi Broken H. 2 lfi O 3 lO ft 3 12 ID Klcc. Zinc 2 .*> fi 2 16 fi 2 17 6 I (prot\) 2 0 fi 218 fi 210 3 Aust. Ton. 3 10 0 1 13 (i 1 17 0 >Mt. I.yell 1 fi O l 13 0 1 13 6 Col. Sugar 47 5 O 40 10 O 48 0 0 Auck. Gas O Ift 0 0 14 0 0 15 11 Wilsons C. 0 10 0 0 Ift ft 0 10 0 N.Z. Brew. 2 10 1 15 3 1 15 0 Pom. Brew. 1 12 0 1 11 0 1 10 0 Farmers'Td. O 18 4 0 17 9 0 17 0 ! GOVERNMENT STOCK. £ ». d. £ s. d. £ s. tl. I'10.»2-5r> ..00 0 O *05 15 0 05 13 0 1043-40 . . DO 10 O 08 7 O OS *> O 1953-57 . . 91 10 0 OO 10 0 90 10 0 1918 — 90 12 C fOO 12 G i . fNominal. •Ex dividend or intermit.

LATEST SALES. Sales since last review have been as follows: — Banks.—New Zealand. £1 IS/, £1 IS/3; New South Wales, £29 2/0. Insurances.—New Zealand, £2 13/ (21; Queensland. £2 10/0: South British, £2 2/; Standard, £2 14 . Government, etc.- Bonds: 15/2'43-40, -1 per cent. £98 5/' (21: Stock: 15 2/43-40. 4 per cent. £98 5/ (31; 15/3,40-43. 4 per cent. £99 10/ (.31; 15 4 40-40. 4 per cent. £95 10.'; September, 39-43. 3Vi per cent. £99 5 : City or Auckland. 1/1 44-50. 4 1 per cent. £99 15/: Auckland Cas. 1/7 12. (i per cent. £1(11: Auckland Harbour Board. 9 7 '57. 4'i per cent. £ 100 JO.'; Gisborne Sheepfai niers', .3 8 41. O'/j per cent. £97: Newniaikct Borough ( ouiicil. l'O's-l. 4U per cent. .£9O 10; Waitemata County Council. 31,3/50, 4 1 4 per cent. £99 10'. Mining.—Nanhere. £1 2 9 (2): Waihi Investment, (I/O (2). 0/9 (21; Biokeu lliil South. £1 1.1/0 (21: Emperor. 11', 1') 0 (21; North Broken Hill. £2 15,3 '

Australian, etc. -A.C.1., £1 17/. lights, 3'. 34. 30. 4 . 3 11. 42. 4 3 (21. 4,'ti 111; Rrokeu llill Priiprietarv. V 3 14 0 (21. £3 14/4. £3 13/3. £3 13/. C 3

12 10; Colonial Sugar. £47 10/, £48: Electrolytic Zinc. pref.. t'2 19/3: Moris Dock. 10'; Mount I.yell. £1 13 0. | 15/, £1 15 3; Taranaki Oil Development, 1/10. 17: Woolworths (S\dncvl. L'l 2'9 £1 3'6 (21. £1 3/ (21. £1 3/3 (2l: Woolworths Holdings. 14 3.

Dominion.—-Auckland Gas. 15/; Bvcroft, £' 1 15 0: Hrowii. Kwing. pref.. £1 O'O; ( onsolldated llrick. 8,2: Devonport I' erry. £1 0 0: Dominion Breweries, £1 10 : Dominion Investment, 10/; Farmers' Auctioneering (£ 1 paid). Farmers' Trading. 17, 1! pref.. IS/: Milne and Clioyce (deb. stork). 1(i li |2); N.Z. Drug, £3 7/9: N.Z. Refrigerating. 17'. (cou.V 8/1 l-s; Renown Coal. 8/1; Taupiri Coal. lO'O: Wilsons Cement. 10 0; WoolworMis (N.Z.I. 10/10: Met tors. 14'.