THE WEEK REVIEWED.

Auckland Star, Volume LXXI, Issue 159, 6 July 1940, Page 4

THE WEEK REVIEWED.

MUCH BETTER TONE. MARKET moves steadily up. IMA MS I- I) (I>\ ri DKM'K Al'l' M i'\" r. A .If till t. !y '„•!>. r I/,IK' was ■\, !. Nt I'll ■""I t.if >11.11 l.rt ~s I i• stc.idi.'St it il l-, '"' p n i"i some 11ni". Aii i-nrnur .c.i>ur" i.s tlrnt, while the rise .Mitkipat.-d '••• ~ p'.» C. It has li.it. hcen spei tacular ,|| !bi. tn.itm_', lint tri 'lii il ami steady. T:i I'M"! i'ni'l fill win. !i |h,- week elopes is or i,i.ii huh it oi>.ti.-.i, .urn >" 1 I> !'• i" "11 it 111.IV In : ik">i lint the .i •i\,i i• ( • is I > ;j1 <; miii nol .i'l* i I'n ~i!. In tii«' review of the cxc'i.-injc u cck I i>t • v .it nnl.iy it u.i-. slated tli.it the Budget u.is i.ivuni liii.v receive,! jii'-: tn.it pri< «■.- b"gan tn rice imnie, 1 ~iK !y afterward#. I his rise li.is 1,, .mi sunt.linn I am! li.is more not i.-calilu every .lay. Added t., this the war no« s has been at least no lir, rs.; and, if anything. a little better. I lie reaction of the Auckland Stock Kxcharige is nun li tho same that in Britain itself. A recent cable said that the worst week on the London Stork I'.x. h.tiifre since the war had just passed, and that value* were on the way up. Ki lerenct? to the s.*cui it.ies {.nee indices «hn h the "Sur'' publishes daily will show how represen tati\ u issues' have improved, while a. cable published yesterday showed mi almost universal rise in the price of colonial stocks a id consuls. Renewed Confidence. All this speaks of renewed confidence. Investors urn beginning to realise that, despite the first advance of lli tier, he has by no means won the war, and that even though events have been gravely dis«iuietintf, this is no reason for unneecKsary selling of financially sound .stocks. The following two tables show the vrend of the market between 'bis and last week, and between now and lour calendar weeks ajro. The first is the price differences between this and last week: — This week. li.'ist week. £ s. (1. £ s. d. Hank of A'a sin «in o 810 o Nat. Bank of .N.Z. 115 0 1 10 0 Hank N.S.W i."i 10 O 25 0 O liank oC N.Z 1 1!> O 1. 18 .*! N.Z. Insurance .. 2 14 ti 2 I.°. !» Horn. Breweries . 1 8 3 1 !) 0 N.Z. Breweries . . 110 3 1 10 0 New Zealand Drug a 13 0 3 14 O Stock— m.".3-. T i7, 4 p.n. . 100 0 100 10 0 1941! 40 103 0 0 102 13 0 KYankl'n P.B. 1003 41 per pent lOt; 5 0 100 f> 0 In the above table the highest price in this week has been given and the lowest of Inst week (fcvhieh generally speaking was before the Budget). Tho next table is a comparison with four weeks ago: — Four weeks This week. ago. £ s. (1. ,C s. d. NaMonlll Bank N.Z. 115 0 117 0 Hank lot N.Z. ... I 10 O 1 IS 9 N.Z. Insurance .. 2 14 fi 2 1« O Horn. Breweries .. 18 3 1 » 3 N.Z. Breweries .. 110 3 ] lit « New Zealand Drug 813 0 316 o Woolwortlis (N.Z.) 0 13 0 o 12 rt Stock, 1043-40 .. 101 la 6 102 10 0 Prices Moving Up. speaking, prices are moving back. As the week grew older increased decision in buying quotation* could be seen. An advance of anything up to 3d would be inude between the morning and noon calls and rnrely would there be recession from this new level. Only in really good shares was tho advance nindp, buyers using extreme caution. The market was hesitant nt the opening of the week, nud that hesitation has not yet gone. The market depends on circumstances outside investors' control, and that w why the market is moving slowly. However, as stated in the opening paragraph, this in itself is a source of strength. As the -week progressed market leaders set the torn-. Banks, insurance*, breweries and the better industrials—all these improved. On the other hand the levels are a good deal below those of four weeks ago, as a glance at the second table v ill show. Jn that week, which ended on June 14, values fell very rapidly, but even then the level now is lower. Still, a recovery as rapid as the fall is not to bo looked for. Further Improvement Hoped For. If nothing untoward happens, the improvement which was forecast last week may be expected to continue. Most business during the week was again done in gilt-edged securities. The market, though freo in the sensos that a good many sales took place, was restricted as far as price was concerned. Issues of maturity dates between 1946-4!) And 1952-55 sold at the same price, £102 1."/, while tho last sale of the first-named issue was £103. Investors apparently think that their money is safer in sTich issues, though the interest return is small, and becoming «malJer as the price paid rises. At present, the return on 1046-40 stock at £102 15/ is about f £3 13/ per cent. They probably consider that their money is secure until the loan matures—and much can happen between now and 1955. On the other hand there lias also been inquiry for 1940-43 stock. This issue can be called on nt three months' notice any tfnio now. Investment in this issue is a littlo harder to understand, LATEST SALES. .Sales since last review are:— Banks.—Bank of Australia. £8 10/; National of New Zealand, £1 15/; New South Wales, £25 10/ (2), New Zealand, £1 18/3, £1 18/(i (2), £1 19/ (3). Insurance.—New Zealand, £2 14/ (2), £2 14/3 (3), £2 14/6. Dominion.—D.l.B.A., 18/; Westport Coal, £1 0/6 (odd lot): Dominion Brewericn, £1 8/. £1 8/3: New Zcnland Breweries, £1 10/, £1 10/3; Farmers' Trading, 17/0; Milne and C'hoyee (deb. stock), 14/6; M.K. Manufacturers, 5/0. /I/0; New Zealand Drug. £3 13/ (3); NewZealand Newspapers, £1 0/9 (2); Northern Roller Mills. 18/3. fpref.), £1 1/3; Woolworths (N.Z.), 13/0, 13/0. Government Loans, Debentures, etc. — K lira I bonds, £102 10': Stock. 1935-57, •'l'/i per cent, £100 3/. CIOO (21; 1938-41, !l% per cent. £100: 1040-43. 4 per cent. ClOl 2'o (3); 1043-40. 4 per cent. £101 12 0; 1040-49. 4 per cent. £102 15/ (4), C 103: ,1049-52, 4 per cent. £102 17/6: 1052-55. 4 per cent. £102 15/ Auckland Klectric l'owcr Board. 1943. 4'4 per cent, £102 10/; Auckland Harbour Board. 1051, 4'4 pel' cent. £105. 1050, 4'/t per cent. £104; Franklin Power Board, 10(53. I'i per cent. £)0« 5/; Auckland (las. 1049. j per cent, £102, 5 per cent perpet.. stock, £1(10 I.V. (cum. int.) £98 5' fox int.). TREND OF MARKET. The following ta'blo indi<«Ues the lluctnntions in the values of various sor milieu: — BANKS. •Lilly 5, .Tilly -. .1 tilv 5, 1939. Ml 10. 1940. £ s. 'I. £ s. <i. £ .1. Va 1.. N.Z. 2 4 11 1 15 O t J.", n N.S.W. .. . 30 O O 2.-, 10 0 •_>"> 10 0 N, Zealand 1 18 9 1 IS <J 1 19 o

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