WEEK REVIEWED

Auckland Star, Volume LXXII, Issue 109, 10 May 1941, Page 5

WEEK REVIEWED

SHAREMARKET QUIETER

GOVERNMENT LOANS STRONG

Steady conditions have prevailed in the investment market at Auckland during the past week, with turnover below the average except on Wednesday, when a strong demand for Australian securities and gilt-edged stocks promoted a brighter tone. The spurt was short-lived, however, and contrary to the usual experience towards the end of the week, business fell to small dimensions. Sentiment is still obviously affected by the atmosphere of tension surrounding the war situation, but the market here is in a mood to respond instantly to any decisive development, such as, for instance, news that the American Fleet will convoy British ships. In contrast to the position some weeks ago, the export outlook is more encouraging, while the fact that most companies balancing on March 31 whose accounts so far have been published have been able to maintain their dividends, should also weigh with those possessing funds for investment. The difficulty, of course, is the marked shortage of firstclass scrip and the lack of interest taken in more speculative issues. Whether supply and demand will become more evenly balanced over all sections of the market in the future depends entirely on war developments and their effect on our internal economy. An outstanding feature this week was the high prices paid to secure what few parcels of inscribed stock were offered. Supplies were strictly limited and were only secured following keen bidding. Below are the selling prices of four issues this week compared with a year ago: — 1941. 1940. £ s. d. £ s. d. Stock, IS.'6/52-55. 4 p.c. .. 106 S 0 105 10 0 31/5/54-58, 4 p.c. ... 107 5 0 106 10 0 15/3/40-43, 4 p.c. ... 101 0 0 101 15 0 15/4/46-49, 4 p.c. ... 102 17 6 103 0 0 ! It will be observed that the longer-dated issues carry the largest premiums, and yields for those have dropped to below ZVz per cent. Banks have been quiet, with New Zealands showing little improvement following the recent setback. Insurances were fairly inactive also, especially toward the close, when sellers disappeared. Buyers increased their offers l to induce business without result. Coal, timber and woollen shares were sought, but here again supplies were firmly held. Buying orders flowed freely for the more ponular Australian issues at mid-week, A.0.1.'a gaining 1/ at £2 2/. shortly before the announcement of the higher ordinary dividend. Broken Hill Proprietaries lost very little ground on being quoted ex dividend, but the contributings moved back from £1 5/10 to £1 4,3. Sydney Woolworths were active, but at only a penny or two above 16,'. against 17/6 early last month and £1 1/6 a year ajro. Dominion Breweries and Farmers' Tradings have been the most active shares in the Dominion section, trading generally heins only moderate, with values weal: when contrasted with those a month aio. Northern Rollers gained substantially following the disclosure of the dividend. Fertiliser shares, with the exception of preference issues, were neglected. Interest was practically nonexistent in the niinira section, though Australians, such as Mount Lyells and Mount Morgans, continued to be well supported.