WEEK REVIEWED

Auckland Star, Volume LXXII, Issue 169, 19 July 1941, Page 4

WEEK REVIEWED

BRIGHT SHAREMARKET

WAVE OF CONFIDENCE For investors the week just closed l:a-i been tlie most cheeriul ot Uie year. In the few rhiys shaie valuer have surged upwards in one ot the strongest movements since tiie war began. Factors inducing optimism have been tlie stubborn Kuseian resistance to the Nazi horded, the terrific K.A.F. offensive, the Syrian

p.rmistice a.nd the American ik' cup a t ion oi Iceland. Finally there has been the Budget, declaring a virtual holiday in tax increases. For some weeks the brighter sentiment has been reflected in the chief financial centres of the world. In the Dominion this has now been buttressed by a series ot announcemets in the Budget which, taking the short-term view at least., are favourable to investment capital.

Business leaders goneruliy will apjirove tho abandonment oi the principle of compulsory loans in favour of voluntary issues, and it is predicted that full advantage will be taken of this new avenue for financing the war. Lower overdraft rates should also materially assist new industries and those concerns which have been hit hardest by wartime taxes and the compulsory loan. The cheaper money policy is certain to give further impetus to the keen demand for good investments, and evidence of the trend has not been lacking this week. Kxceptionally high premiums have been paid for long-dated local body debentures whenever a few parcels have been released, while scrip in many market; leaders, including the more popular Australian lines, has been very difficult to obtain. Sellers have been off the market for moet fixed interest-bearing stocks, and have raised their limits sharply for a wide range of investment shares. Towards the close there was more disposition to liquidate rather than run the risk of an early reaction, and turnover expanded as a result. Spectacular Gains Banking shares responded instantly to the Budget statement, which promised the long overdue adjustment in the basis of taxation of banks, and sellers left the market for New Zealands. returning to unload at 38/, a rise of 2 3 in two days. Following a slight reaction in insurances earlier in the week, considerable business was done at higher levels. New Zealands moved forward to a record peak price at £3 5/6. Miscellaneous Dominion shares, especially preference issues, were in firm demand, with spectacular gains iu retail stores, a reflection, no doubt, of the absence of new taxation affecting consumers. Farmers' Tradings, which had been appreciating steadily before the Budget announcement, yesterday touched the guinea mark, the be.it market since the issue was created in 1937. Macky Logans improved a full 1/ in one transfer, while Woolworths, which have been selling at around 13/ for weeks, were lifted to 13/8. Woollens were more active at good prices, and breweries had a stronger but quiet market. Timbers and coals were also inactive due to the absence of sellers. Farmers' Fertilizers sold ex dividend at Id above their cum dividend price a fortnight previously. Australians Much Stronger Buoyant markets across the Tasman set the pace for a prominent advance in the major Australian securities, but operators found trading limited owing to shortage of supplies. At the close, however, some were released at higher rates. Electrolytic Zinc rights were keenly sought at a gain of 1/ over the week, but levels were easier yesterday. A.C.l.'e and Sydney Woolworths forged ahead, the former to a new high level, but Broken Hill Proprietaries were rarely close to business. Overseas mining issues were active, but here the upward trend was less pronounced. Fiji gold mines hardened, dealing in other issues being around late levels.

In the gilt-edgeil eection War Loan moved to £86 in sympathy with the stronger market, and in the South a sale was reported at £86 15/. Holders locally are quoting £88. Government stocks were hard to find, and rates were very firm following notification of the new interest rates. With the withdrawal of the National Development Loan, which was subscribed to the extent of £7/282,000 to July 15, quotations were opened on the Auckland exchange this week, buyers offering 5/ above the issue price of £97 5/, sellers remaining silent. TREND OF MARKET The following table indicates the fluctuations in the values of various securities: — BANKS

tEx interest. •Owing to the reimposition of the ban on June 20. 1940. on the Quotation of securities not domiciled in New Zealand, the market price for these issues at this time last year cannot be given. The values of overseas securities included in the foregoing table are those ruling on June 19, 1940, the day before the quotations were prohibited. LATEST SALES Sales since last review are:— Banks.—New Zealand. £1 15/10 f3). £1 15/9. £1 16/, £1 16/3; Union, £6 9/: National of New Zealand. £1 14'9; Australasia. £8 6/6, £8 9/ (2); New South Wales. £23. Insurance.—Scut.n British, £2 13/ (2), £J 12/9, £2 13/, £2 13/3: National. 18/6',18'7; New Zealand, £3 4/9 (3). £3 5/6: Standard. £3 0/6. Dominion.—Farmers' Trading, £1 0/6 (3). £1 0/9 (4). £1 1/: ditto. B pref.. £1 1/9: National Electrical. 19 '10 (3): Woolworths (N.Z.). 13/1. 13'8: North Auckland Farmers (B pref.). 6/6; Christchurch Gas, £1 o'9; Taupo-Totara (pref.), 12/, 12/3: Wellington Qas, £1 9'3: WestportStockton (pref.), 6/9; Traders' Finance, 8/; Oamaru Wool. £1 o'6; Innes' Brewery (ord.), 18/6* New Zealand Refrigerating <patd). 17/3: ditto, con.. 7/6; Reld Rubber (7/6 paid), 11/3 (2); Dominion Investment, 18/: Mosgiel Wool, £10 1/6; Peters Ice Cream, 13/ Consolidated Brick, 6/8; K.D.V. Boxes, 8/6; New Zealand Breweries, £1 12/6; Wellington Wool. £6 15/ Macky IjOgan, £1 1/9: Farmers' Fertilizer (ex div.). 19/6. Australian and Overseas.—Electrolvtic Zinc (rights). £1 9/ (2). £1 B'9 (4). £1 8/10. £1 9/ (2). £1 9/6 (2), £1 9/9 (2); Woolworths (Svd.). 16'6. 17/3 (2): Morts Dock, £1; Woolworths Holdinn (S.A.). 15/2; New Zealand Loan and Mercantile, £30 (2); AC.I.. £2 10/. Jil i'!i B "T„¥ art!,a - 7/B '4- 7/8 (2); Mount Lyell. £1 7,9 (2); Mount Morgan. 9/1. 9/2; Walhl Investments. 4/6 (2); Loloma. £16/ Emperor, 12/ Loans and Debentures—Stock, 15/1/53-57, 3V-. per cent (ex Int.). £100 10/ (2): 15 2'43-46. 4 per cent. £102 10/. £102 12/6: 15/6/52-55, 4 per cent, £105 5/; 31/5/54-58. 4 per cent, £106 7/6; War Loan. 1/10/53. £86; Waitemata Electric Power Board. 1/10/59. A\' a per cent. £110; Auckland Gas (perp deb.) £95 5/. £96: Mount Eden Borough, 1/8/67, 4,i per cent. £110; Amalgamated Brick (Wellington), 31/3/44. 6 per cent, £101 15/Amalgamated Brick (Auckland), 1/3/44. 8 percent. £102 5/.

Unofficial.—Una Hill, 1/4. 1/5 (2)

July 19, July 11, July 18, 1940. 1941. 1941. £ s d £ s d £ s d Commercial *0 13 6 0 14 0 0 14 6 National, N.Z. ... 1 16 0 1 14 3 1 15 6 New South Wales . 25 17 6 28 0 0 28 10 0 Now Zealand 2 0 3 1 15 11 1 18 0 Union *6 10 0 6 9 0 6 10 0 MISCELLANEOUS N.Z. Insurance . 2 19 6 353 356 South British ... 2 7 6 2 13 0 2 13 6 A.C.I. *1 11 0 270 290 Broken Hill Pty. .. *2 03 228 240 Bycrofts 206 240 240 Mount Lyell *1 40 179 180 ; Auckland Gas .. 086 059 0 6 0 ! Farmers' Trading 0 19 3 10C 110 Doxn. Breweries .. 193 180 186 N.Z. Breweries .. 1 13 9 1 11 10»/a 1 12 6' G. J. Coles *2 19 0 319 323 Wilsons Cemrnfc . 0180 0 18 5 0 18 9 Colonial Rugar *43 0 0 54 0 0 54 10 0 Wool worthsNew Zealand ... 0 15 0 0 13 1 0 13 8 Sydney *0 15 0 0 16 3 0 17 3 GOVERNMENT STOCK 1952-55 tl03 10 0 105 5 0 105 5 0 1943-46 103 5 0 102 10 0 102 12 6 1953-57 98 17 6 102 0 0 tl00 10 0