FINANCE AND COMMERCE

Press, Volume LXXI, Issue 21656, 14 December 1935, Page 14

FINANCE AND COMMERCE

if .* » m .. * | SHARE MARKET f REVIEW Exchanges remain firm I Irumour affects insurance I ISSUES (by our commercial editor.) 5 Though markets all over the Empire have shown signs this week of »Pie inactivity that usually prevails jjust before and for a time after the holiday season, there has been a very good tone, and nothing has occurred to dampen the optimism of investors. of almost every company reporting have shown healthy increases •’t>ver the previous period, and trade, ‘Eitcmally at any rate, is in most Empire countries flourishing. The success of the Government loans in ,'Great Britain and Australia has added to the already strong confidence of investors, and the markets have •generally felt a solid buying power. ■IT Australia was in a very healthy state before the result of the recent Government loan was known, but the success of the issue, coming on the heels of so many improved balance-sheets, «nd the increased value for wool and meat, has further 'Stimulated the markets. and has dispelled almdrt all ‘traces of the hesitancy bred by the : situation in Europe. Australian Stock Exchange activity has a profound influence on the New Zealand market, Shot only on Australian stocks dealt in here, but also on the purely domestic issues of which so many are bought Jnd sold at the other side of the Tasman. f The New Zealand Exchanges as a ifchole have been quieter this week, but the aoproaching holidays are more than probably the main cause. There |lios been a decrease in the value of Issues of the New Zealand banks, and lithe Mortgage Corporation. Insurance Shares have also shown a slight weakening, mainly because there is a ■tumour current that the new Government intends to take over all the employers' liability insurance of the ’country from the private companies. It is very difficult to understand how She rumour originated, because nothing has been said about insurance by Jlhe Labour party that would indicate ijhat the State will take up this class tof business. In fact, every indication points to investors being given the dullest warning before the Govern- • ment takes any step that might upset ■them. On Wednesday, the Minister for Finance, the Hon. Walter Nash, assured investors through the president : bf- the Stock Exchanges Association •Mr H. Kitson) that no move would be taken without the fullest study of its possible effects on the Exchanges. Apart from the few stocks that have shown declines recently, the exchanges have been strong, with most of the slight losses noted caused by ‘the usual holiday-time selling of stocks bought earlier in the year as savingi against the expenses of a holiday. The following were the daily totals of turnover, compared with last week:

This week. Last week. £ £ Si Saturday .. 1,984 2,356 iJJ Monday .. 7,674 10,307 4 .. 5,044 13,420 i .. 7,731 2,617^ 1 ‘Thursday .. 4,967 6,404 if - Friday .. 3,377 8.162 j I [/' Total .. 30,777 43,266 The business done in the different j sections was;— | Value Shares. £ Government .. 1,649 Debentures .. 1.700 Banking .. 701 3,054 insurance .. 200 775 f Loan .. .. 1.900 3,984 f Refrigerating .. 1,668 838 Breweries 2,000 3,670 I' Miscellaneous .. 7,340 12,995 | Mining 7,950 2,019 I Government Loans Though there were very few transit • .fictions in Government loans on the | Christchurch Exchange this week, the | general tone of the market was strong,. gitfd there appears to be a good deal |i of-money looking for investment in | this type of security. Toward the end | of the week the strength was particularly noticeable. The only dealings *■ recorded were in the 4 per cent. 1955 issue, of which two *sales were made ; at £lO7 ss, a loss of 5s from the high I point last week. Banking Banks received a fair amount of attention this week, the New Zealand I concerns again showing weakness. New I Zealand were a shilling cheaper at £2 8s 3d, but at £3 12s 3d National | of New Zealand were little changed. A sale of Reserve Bank was made at | £5 15s in the middle of the week, but | the market was less strong toward the E end of the period. National of Australia were sold at £l3 19s, an advance of 6s 6d on the price last month. ' Commercial of Sydney l showed a firming on the week, and finished at £l7 16s 6d. *, Insurance There was little business in insurance, and owing to the rumour of the projected entry of the Government into the employers’ liability held, the market was generally slacker. New Zealand at £3 3s were cheaper than last week, and South British were also a shad* easier. stv Loan and Agency The loan and agency section remains strong, with the exception of Mortgage Corporation, which were again definitely weaker. The better wool prices and the sound outlook for meat have induced holders, to value their shares more highly, but business in this section was still brisk. Goldsbrough, Mort had business at rates about equal to those of last ,week. National Mortgage A, which attracted fair attention, increased in value, and the issues of the New Zealand Farmers’ Co-operati/e of Canterbury were also, a shade stronger.. New Zealand Refrigerating shares increased in value during the week, and remained firm at the new levels. Breweries y ' Breweries are among the stocksmost readily affected by changes in the public prosperity, and investors generally have been quick to apply the better prospects to the market for this class of shares. Breweries have been very strong for some time now, and this week there, were gains in a number of brewery issues. New Zealand advanced in dealings from £2 13s at the beginning of the week to £2 14s 3d at the end, and Tooths and Timaru both showed useful advances. Miscellaneous The increasing prosperity of Australia and New Zealand has made industrials more attractive, and the markets this week have as a tule continued to gain strength in this class of stock. Anthony Hordern rose 5d to 19s 9d in the week, and British Tobacco were dearer by up to Is 9d following the publication of the figures v lor the last year. Electrolytic Zincs, though they were erratic, were firmer. L.. One of the few to show any noticeable was Dunlop Rubber, which the decline noted last week. of a distribution of

English shares to Procera shareholders stimulated interest in this stock, but prices were erratic. Considering that transactions were made ex rights, the present price must be very gratifying to holders who bought cheap. Woolworths, Sydney, continued firm at £5 18s. Alining There was not a great deal of interest in the mining section, except in Mount Morgan shares, which advanced Bsd in active trading. Skippers were dearer at the end of the week, and Argo Gold showed a good advance. YESTERDAY’S TRANSACTIONS There was a moderate turnover on call yesterday, with the bulk of the dealings in Industrials. Markets, on the whole, were firm. There was good enquiry for Government issues, but few sellers offered. Transactions, exclusive of vestibule business, were:— LISTED STOCKS Sales on ’Change £ s. d. 300 Goldsbrough Mort (3) 112 0 100 Mortgage Corp. (5s pd.) 0 5 2 200 N.Z. Breweries (cum div.) (2) 214 3 2 14 2 2 14 1 100 Kalapoi Woollens (17s pd.) .. .. 0 14 6 400 British Tobacco (5) 2 0 3 100 Electro. Zinc, (ord.) 1 15 0 600 Big River .. .. 0 1 10J (2) 0 1 11 100 Mount Morgan .. 116 6 50 Rawang Tin .. .. 0 8 6 300 Skippers .. .. 0 0 3i Sales Reported 100 Mortgage Corporation , (5s paid) .. 0 5 3 150 Natl. Mortgage “A” .. 2 14 0 100 British Tobacco (cum div.) .. .. 2 0 9 50 Broken Hill Propty. 2 17 8 5 Colonial Sugar , 42 7 6 UNLISTED STOCK Sale on ’Change 300 Argo Gold .. .. 0 15 Miscellaneous Goldsbrough Morts, cum dividend, were fractionally firmer at 325, market closing Id either way. Mortgage Corporation, 5s paid, were fractionally weaker with dealings at 5s 2d and 5s 3d, and more were offered at the higher price. National Mortgage “A" were firmer with business at 545. Kaiapoi Woollens, fully paid ordinary, advanced to 14s 6d. New Zealand Breweries, cum dividend, showed an easing tendency, with dealings at 54s 3d, 54s 2d, and 54s Id, and further sellers at 54s 3d, buyers at 53s 9d British Tobaccos had dealings at 40s 9d and 40s 3d, sellers staying in at the lower price, buyers at 40s 2d. Broken Hill Proprietary had business at 57s 8d and more were offered at 57s 9d, buyers at 575. Colonial Sugar changed hands at £42 7s 6d, Electrolytic Zinc ordinary were fractionally weaker at 35s market closing 34s lid buyers, 35s 3d sellers. Mining Big Rivers were fractionally firmer with dealings at Is 10£ d andHs lid, and further buyers at Is lid, sellers at 2s. Mount Morgans advanced to 36s 6d, market closing Id either way. Rawang Tin were firm with buyers and business at 8s 6d. Skippers were a shade stronger with buyers and business at 3sd, sellers at 3Jd. Unlisted Stocks Argo Gold were a shade stronger at Is sd.

AUCKLAND [THE 7BESS Special Service.] AUCKLAND, December 13. More business was transacted on the Auckland Stock -Exchange to-day than for several days past, but the turnover for the week was not up to the average. End-of-year lassitude is beginning to affect operations. Prices fluctuated widely from day to day, except in industrials, and there was an easier tendency in levels during the week. This was most pronounced in Reserve Banks and Mortgage Corporations, which are perhaps more' closely connected with political events than any other stocks. Support was wanting for these issues and quotations sagged. Loans also were weaker and only a few sales were recorded. 1 Reserve Banks changed hands today at £5 15s 6d, a drop of 4s, and Mortgage Corporations were secured at 5s 3d, compared with 5s 6d last week. The tone of the market suggested a turn- from New Zealand banks and insurances to the industrial market. This is due to the belief that indirect taxes, such as the sales tax, will be replaced by direct income taxation which will not be altogether favourable to the big financial institutions. Australian industrials had an improved enquiry, and it is fairly evident that Australian issues are receiving more attention than formerly. This movement is as yet too indistinct for general notice. Movements in banks were somewhat erratic, but the market was not particularly strong, except for some overseas issues. Insurances lost favour to a certain extent, and all issues were easier. Australian industrials generally commanded higher prices. ' The mining market was quiet. DUNEDIN ITHE PEES 3 Special Service.] DUNEDIN, December 13. A fairly large volume of business was transacted on the Stock Exchange during the last week, saies being evenly distributed among the various classes of investments. The market for the majority of shares continued firm. Bank of New Zealands were disposed of at £2 7s 9d, £2 Bs, and £2 8s Id, ex dividend, the market showing a slightly weaker tendency at the close. E., S., and A. Banks were disposed of at £5 12s, and Union Banks were sold at £9 11s. National Insurance changed hands at 19s 6d, and New Zealand Insurance were also the subject of business at £3 3s Bd. There was little activity in shipping shares. Union Steam preferreds were dealt in at £1 7s 6d, cum dividend. The contributing New Zealand Refrigeratings changed hands at 10s 7d and 10s Bd. Mortgage Corporations met with a noticeably easier enquiry at ss, compared with 5s 4d last week. Westport Coals were disposed of at £1 Is 9d and £1 Is 6d. Ordinary Kaiapoi Woollens were dealt in at 14s 6d, and the preference issue was offered at 18s 3d without any response from buyers. Australian Glass shares were disposed of at £4 2s 9d, but no quotations were received during the latter part of the week. Broken Hill Proprietaries were the subject of business at £2 17s 6d. Dominion Fertilisers met with a slightly firmer enquiry, and business at £1 3s 9d was reported. New Zealand Drugs were firmer at £4 Os 6d. There was a steady improvement in the market for New Zealand Breweries during the week, and business at £2 12s 6d, £2 12s 9d, and £2 14s 3d was recorded. There was some activity in ordinary Electrolytic Zincs, sales being recorded at £1 14s 9d, £1 14s IOJd, and £1 15s 3d. The closing buying offer was 8d below sellers’ requirements, , There was no activity in New Zealand gold mining ventures. There was a fairly steady enquiry for certain issues of Government loans, but sellers showed little interest. Business was reported in the 3i per cent, stock, 193943 at £lO2 10s, and 3J per cent, stock, 1939-43, at £lO2 10s, the 4 per cent. Stock, 1943-46. at £lO4 10s, and £lO4 15s, and the 4 per cent, stock, 1946-49, at £lO4 17s 6d and £lO5,