WEEK REVIEWED.

Auckland Star, Volume LXXI, Issue 237, 5 October 1940, Page 5

WEEK REVIEWED.

INVESTORS' UNEASINESS. SHARE VALUES UNSTEADY. \ _____ i i New Zealand shares have had an t uncomfortable week. The anticipated ] effects of the compulsory war loan on com- i pany securities are reflected in a setback ] to values, and the market has been in an , unsteady condition, which makes trading ; difficult. So tar, however, investors have ] taken the shock well, and changes in price i have been held within fairly narrow limits. An aspect which is exercising the minds of business people is the probable double effect of heavy taxation and the war loan combined. While the method of borrowing adopted by the Government may appear to spread the burden evenly, actually the weight of the loan will vary greatly according to the different civcum- ( stances of companies and individuals. , Although some may not find the demands : onerous, in othsr oases some trenching on ■ capital would appear to be inevitable. At a time when industry is striving to cope with the uncertainties of •nai*, and production should be expanded to the maximum, the maintenance of capital resources in industry should be a matter of national concern. For this reason a voluntary loan on a straight-out patriotic appeal, based on a low interest rate from the outset, would have been the wiser course to adopt. Brewery Shares Sensitive. Among the securities which have been most sensitive to the changed situation are those of brewery companies. Both Dominions and New Zealands have eased on the market, the former by 1/ and the latter by 1/6 over the week. Woolworths (N.Z.) and Wilsons Cements have also been somewhat weaker, and Auckland Gas •have been unsteady, but Wilsons Cements recovered at the close. The natural effect of the new situation has been to concentrate investment demand more on gilt-edged scrip, and values of Government stocks have been stronger in consequence. With the latest advances in price, the yield is now down to about 3% per cent for several of the most popular issues, and at this level holders still find it comparatively easy to dispose of their offerings. Local body debentures are affected in sympathy, and are selling well above par for all issues of 4 per cent or over. Insurances have made a partial recovery from their Tecent and banks have been steady, with New Zealand selling unchanged at £2 2/6. Australian shares have experienced several advances. All the leading securities have been traded at firm or higher values, namely, B.H.Pf, Colonial Sugars. A.C.l.'s. G. J. Coles and British Tobaccos. For Mount Lyells and 'Mount Morgans offers were raised confidently, but without business resulting. , The most steady of local shares have been Farmers* Trading and Consolidated Bricks, while Devonport Ferries have recorded a small jrain. LATEST SALES. Sales since last review are: — Banks.—Commercial, 15.'; New Zealand, £2 2 6 <3 iiwuraricea.—New *'Zealand. £3 o'6; South British. £3 9/9 (2). Mining.—Clutha. 2/. . „ , Australian and Overseas.— A.C.1.. CI »'« <->• British Tobacco. £2 9/V £2 10 3: 8.H.P.. £2t «.9 (3): Colonial Sugar. £52 10/ (2): G. J- Coles. £3 8/6; Tooth's. £2 U/6. Dominion.—Auckland Gas. B'4 (41. B*3 (2). Auckland Gas, perp. deb.. £10115': Auckland Gas (con.). 3/S. 3/1: Amalgnmpted Brick (Auckland). £101 15/: Bond's Hosiery. £1 7/6: Booth. Macdonald (pre!.). 5/: Consolidated Brick. <6: Devonport rerry. £t 2/: Dominion Breweries £1 10/3 (3), £1 10/ (2): Farmers' Trading. £1 0 3: 1 N.Z. Breweries. £1 13'8 £1 12/8: N.Z. Drug. £3 14/8 (2). rights. £1 7/3: N.Z. RefrineraUng. £ 1 0/9: Milne and Choyce. deb.. 15/ I's; Oameni Wool £1 0/8: Taranaki Oil Development, 33: [ Wilsons Cement. 19/6: Woolworths (N.Z.). 16/9. 1 Debenture*, etc.—Commonwealth Bonds. 15/9/47. 4 per cent, £10S: Bonds. 1946- : 49. 4 per cent. £106 (2): Stock. 1943-46 4 per . cent. £103: 1946-49. 4 per cent. £106 (2): 194952. 4 per cent. £10$ 15/ (2): Ellerslie Town Board 1/5/55 3 1 '? per rent. £98: Mount Rosklll Rond : Board, 30'9/55. £104 10/; Mount Albert Borough. 1/7/49. £195. l' 7/48. £104 10'; Takapuna | Borough, 1/2/54, 3'i per cent, £97. TREND OF MARKET. The following tabl<» indicates the fluctuations in the values of various securities:— BANKS. Oct. 6. Sept. 27. Oct. 4. 1939 1940. 1940 £ s. d. £ s. d. £ s. d. . Commercial 015 0 015 0 015 0 National. N.Z 333 206 206 New South Wales .. II 10 0 n S 0 11 5 0 New Zealand 119 6 326 336 MISCELLANEOUS. , £ a. d. £ s. d. £ s. d. N.Z. Insurance .... 314 0 306 309 I South British 249 399 210 0 , A.C.I. 116 3 113 0 118 • 1 British Tobacco .... 260 290 310 3 1 Broken Hill Pty. ... 312 0 269 269 , Bycrofts 115 6 2 2 0 2 2 0 <• Martha 0 9 0 0 7 6 0 7 9 , Mount Lyell 110 9 1 7 9 110 o Mount Morean 099 082 084 , Auckland Gas — 084 083 Farmers" Trading 016 7 103 103 Dominion Breweries 1110 1110 110 0 1 N.Z. Breweries 114 0 114 3 112 9 . G. J. Coles 310 3 366 386 * Wilsons Cement .. 017 3 019 7 019 6 Colonial Sugar 48 IS 0 52 10 0 53 5 0 Woolworths — N.Z: 017 3 016 9 016 3 Sydney 1 3 3 018 6 018 3 GOVERNMENT STOCK. £ s. d. £ s. d. £ s. d. 1 1953-55 96 0 0 107 0 0 107 0 0 , 1943-46 98 2 6 103 15 0 103 0 0 3 1953-57 91 0 0 100 12 6 101 0 0 t