THE WEEK REVIEWED.

Auckland Star, Volume LXXI, Issue 17, 20 January 1940, Page 4

THE WEEK REVIEWED.

INVESTORS CHEERFUL. VALUES RISE STRONGLY. INSURANCES AND INDUSTRIALS. Investors lost no time in getting into their stride, and the second week's business on the Auckland Stock Exchange reflects the briskness which is normally experienced with linn to rising values. The buoyancy of the market has been evident iu almost all classes of securities, and particularly in the shares of industrial companies. As was evident in the burst of activity prior to Christmas the inquiry for shares has been stimulated by the scarcity of offerings in the Government .section and also by the high prices now being asked for Australian scrip | domiciled in New Zealand. More than at any other time in recent years the volume of funds seeking investment appears to have been augmented by an inflow of money ordinarily employed in business, and tlie large accumulation of free deposits in the banks may be expected to bring about a continuation of this position. Import restriction has begun to make its effects felt far and wide throughout the financial system, and a considerable quota of new wealth is being added in the form of proceeds from a profitable export season which is now in full swing. With export prices fixed under contract with the Imperial Government there is every incentive* for the Dominion to increase its production to the utmost. The diversion of the British demand from foreign to Empire sources removes any danger of over-supply while the war lasts. I Strong Demand For Governments. The general demand for all issues of j Government securities bears a striking similarity to the position _ a year ago, when there was a dearth of scrip on the market. To-day, however, quotations are in most cases from £2 to £2 10/ higher. Business in the 4 per cent issues this week has been at par to slightly above, and local body issues have also been in good request at a small premium. Insurances have overshadowed the banks, and both New and South British have advanced strongly, with numerous sales at more than 2/ above tlie highest price recorded last year. There were, however, indications at the close of the week of some reaction in values, and South British had a final sale at £2 10/, while New Zealand's were on I offer at £3 2/6. Interest in the banking group has been j j chiefly concentrated on New Zealands. which advanced further to £2 0/0, and, Nationals of New Zealand, which were active at a rise of 3d. The only Australian issue in the sales list was New South Wales. Acivancc In Industrials. One of the brightest episodes of the week was the marking up of Australian metal scrip. Electrolytic Zincs, Broken Hill Proprietaries and Mount Lyells. Zincs gained a full shilling for both the ordinary and preference shares, and Mount Lyells rose to within 1/3 of last year's peak, but cased slightly at the close. B.H.P.'s were revised to their new basis, ex the 64-to-100 bonus, and after starting at £2 10/3 moved back to £2 15/. Kauri Timbers, G. J. Coles, and Morts Dock were among the most prominent of the other Australian shares on the local market. Generally the group indicated that investors were in optimistic mood, despite the remarks of a Melbourne authority, who said recently that it would be contrary to all experience to believe that the future was rose-strewn. In the Dominion section there was a welcome reappearance of issues which had been missed from the sales list. These included Pukemiros, Gear Meats and MeKendricks. Evidence of the generally stronger tone was seen in the rise in Wilsons Cements, New Zealand and Dominion Breweries, Farmers' Trading and Woolworths (X.Z.). There appears to be a growing feeling that wellestablished companies are able to adapt themselves to the changed circumstance" brought about by the Government's policy and that, while a larger share of earnings is being taken in taxation, there should still be reasonably good dividends for shareholders. LATEST SALES. Sales since last review are:— Banks. —Bank of New Zealand, £2 0/fi, £2 0/7, £2 0/9; National Bank. £2 2/, £2 2/3 (3); Bank of New South Wales, £30 10/. Insurances.—National Insurance, 18/6 (2); N.Z. Insurance. £3 2/ (4). £3 2/3. £3 2/0; South British, £2 0/9, £2 10/ (3). £2 10/0 (3), £2 10/. Government Loans and Debentures.— Inscribed Stock, 1010-13, 1 per cent. £100 12/6; 1940-52. 4 per cent, £100; 1951-58, 4 per cent, £100; 1953-57, 3Vz per cent, £93; Kural Bonds, 1947, £100 10/; City i.f Auckland, 1903, £9S 10/, £99 15/; Auckland Hospital Board, 1944, 4\\ per rent, £110; Ellerslie Town Board, 1954, £100; Newmarket, 1951, £101; Auckland Gas. 1949. 5 per cent. £101. Mining.—Broken Hill, £1 14/, £1 14/3, £1 13/9: Mount Morgan, 9/6 (2); Welington Alluvials. 4/7. 4/9; Emperor, 10/(5 (2); Loloma, £1 17/6 (2); Mount Lyell, £1 13/4. £1 13/9, £1 14/, £1 13/6 (2); Una Hill. 1/9 (2). Australian, etc.—Australian Alloy Steel. 5/9; British Tobacco, £2 14/; Broken Hill Proprietary. £4 8/3. £4 7/6 (3), £2 16/3 '2), £2 15/6 (2), £2 15/ (2), £3 7/3, £3 */6, pref., £3 7/6, £3 8/6; Electrolytic fine. ord.. £3 6/6, £3 6/. £3 6/6 (2), £3 7/ (2); Tooth's, £2 18/ (2): G. J. Doles. £4 4/6 (4); Hnddart Parker, £3 J/;' Morts Dock. £1 0/6; Taranaki Oil, >/4; Taranaki Oil Development. 2/4. 2/5; iVoolworths (Syd.L £1 5/2. £1 5/3. £1 5/4, £1 5/5, £1 5/3; Woolworths Iloldngs (S.A.), 16/. Dominion.—Auckland Gas, 17/10: Byrrofts, £1 19/; Consolidated Brick, 9/ 2): Farmers' Auctioneering, A prcf., 19/6; Gear Meat. 14/3; Farmers' Trading, !7/. 17/1. 17/3 (2). A prcf.. £11/; Leyand O'Brien (odd lot), 12/; Guarantee Corporation, 3/10: Dominion Breweries, £1 13/6 (3). new issue. £1 12/6 (2): N.Z. jreweries. £1 17/6. £1 17/7. £1 17/8, £1 7/7 (2): Kaiapoi. 13/1 (2): Milburn Lime, £1 19/6, £1 19/9; N.Z. Newspapers, £1 '/6 (2); McKendriek, 18/: Taupiri. 19/; 16/6; Wilsons Cement. 19/OV£, 3), 19/1; "Renown, prcf.. 2/5: Westport Stockton, 3/7: Woolworths (N.Z.), 16/6, 6/7 (2), 16/9. TREND OF MARKET. The following tabic indicates the luetuations in the values of various ecurities:— BANKS.

Jan. 20. Jim. 12. .Tnn. 19. 1039. 1910. 1940. £ s. d. £ s, d. £ p. (I. Commercial 0 10 0 0 10 2 0 111 2 Xnt.. X.Z. 2 S 0 2 2 0 2 2 3 (.] X.S.W. ..31 o 0 30 17 0 30 10 0 \\ X. Zealand 1 19 9 20fi 2 0 9 i 1 E.. S. & A. 5 C 0 4 17 G 4 17 C Xat. ofA'sia d (con.) 0 10 0 0 17 0 H 17 G SI Union . . . S 13 C S 5 0 8 5 0 (k MISCELLANEOUS. £ s. «1. £ s. d. £ s. (1. !' X.Z. Insur. 2 13 0 3 1 G 3 2 G S. British 2 2 0 2 9 9 2 10 n 151 Golds. M. 1 S 9 1 11 3 111 3' Brit. Tob. 2 9 9 2.14 0 2 14 0 Broken II. 2 17 9 4 S 3 *2 15 0 Byerofts . 1 IS 0 1 IS 0 1 19 0 Elec. Zinc 2 7 0 3 GO 3 7 G (pref.> 2 It 0 3 7 0 3 S G Mt. Lyoll 17 9 1 13 £• 1 13 G Anck. Gas 0 10 0 0 17 0 0 17 0 Farmers Td 0 IS G 0 17 1 0 17 3 Dom. Brew 1 12 0 1 12 0 1 13 G X.Z. Brew. 2 0 0 1 17 (5 1 17 7 G. J. Coles 4 1 9 4 3 9 4 4 0 Wilsons c. o ir» in n id i n 19 i Col. Susar IS ."» o 5G 10 0 3CI 10 0 Wool wort lis X.Z. . . 0 IS 3 0 1G 7 0 10 9 Wool wort lis Sydney .12 0 15 3 15 3 GOVEItXMEXT STOCK. £ s. d. £ s. d. £ s. d. 1952-55 ..99 0 0 99 10 0 99 15 0 1943-4 G ..99 0 0 100 10 0 101 r» 0 1953-57 ..92 2 G 91 0 0 f93 0 0 194S — 100 10 0 100 15 0 ; •Ex bonus. tEx interest. an