FINANCE AND COMMERCE

Press, Volume LXXIII, Issue 21992, 16 January 1937, Page 10

FINANCE AND COMMERCE

STOCK EXCHANGES ACTIVE

WOOL DEMAND MAINTAINED

Butter and cheese are dull and the price is unchanged.

SHARE MARKET

TIONS

REVIEW

MOST SECTIONS BUOYANT MANY SUBSTANTIAL PRICE GAINS (et our. coMiinnciAL editor.) Rises in the price' of metals, wool and meat over the holidays and a material increase in tb.3. feeling of security have had a most marked effect on the share market. Throughout New Zealand and Australia there has been something of a boom since the recess, and business, which was expected to be brisk immediately on the resumption of dealings, has exceeded expectations. Prosperity increased steadily throughout last year, and the opening of the new year ushered in even brighter prospects. The full effect of the rearmament of the major European nations is beginning to be felt, and almost every commodity market is in a healthier state than it has been for a long time. Almost every class of stock has participated in the rise. Base metals shares naturally, have shown spectacular advances, as the price of metals has increased sharply, but pastoral shares, banks, and industrials of all kinds have reacted to the promise of extra. returns. Chain stores have been particularly popular in anticipation of exceptional profits from trading. Turnover on the Christchurch Exchange reached a total of £71,600, a very large aggregate, and business throughout the week was brisk in every" section. , Turnover, day by day, iwas:— £ \ Saturday .. .. 4,345 Monday .. .. 15,291 Tuesday .. .. 10,474 Wednesday .. .. 13,314 Thursday .. .. 16,632 Friday .. ■. -. 11,572 Total .. -.. £71,628 Turnover in the cnflerent sections was:— Shares. Value. No. £ Government .. 3,925 Debentures .. ■ 1,768 Banks .. .. 1,975 4,249. Insurance .. 700 636 Loan and agency .. 1,781 3,989 Refrigerating .. .1,100 830 Breweries - .. 1,400 3,982 Miscellaneous .. 13,428 38,564 Mining .. 12,277 13,685 Government There was a fair turnover in Gov* ernment issues, in which prices were inclined to harden. The business in banking shares was fair, but prices ■were rather erratic. National of New Zealand, after hovering round £3 Is, yesterday had a sale at £3 2s 6d. Bank of New Zealand weakened Slightly in trading, and Commercial of Australia were erratic. The lean section, on the excellent iwool position, was well supported, and many gains were recorded. Dalgetys, after remaining steady at £ll 12s Gd, .were done yesterday at £ll 14s, and Goldsbrough, Mort, which before the holiday were round £1 15s 6d, touched ; £1 18s this week and finished at £1 17s lOd. Loan and Mercantile, ordinary stock, rose in dealings from £37 to a sale yesterday at £4l 10s. i New Zealand Breweries opened the fiweek at a high level, and on two sales ftouched £3. They slipped later, and tilnished round £2 17s. Miscellaneous Anthony Hordern, like several other [Australian industrials, showed signs of .•weakening yesterday after a period in (Which they rose consistently. The finishing price, £1 0s 6d, is about 2s higher than the level at the end of Jast year. There were several sales of Australian Iron and Steel on a marIcet which rose steadily, but not spectacularly. The shares finished at £1 6s 2d. British Tobacco rose sharply at the beginning of the week, and continued to move up, finishing with a sale yesterday at £2 10s 6d. The Broken Hill issues firmed throughout the period. The demand for G. J. Coles was exceptionally keen until yesterday, when there was a reaction. ■The highest prico on Thursday was (£4 19s 3d, a gain of 9s on the week. Probably the most interesting movement was that of Dunlop Rubber, ■which rose spectacularly to levels higher than any for a number of years. The week opened with sales Sit 17s lid. but on Thursday there was a sale at 19s 4£d. There was a slight easing yesterday, but the rumour of an interim dividend has maintained the interest of the market. Both Electrolytic Zinc issues made considable gains en the excellent metal position. The ordinaries had dealings at up to £2 16s Id. and the preference at up to £2 18s 9d. Most chain store issues were in keen demand. New Zealand Wool worths rose from £6 15s on Saturday to a <"nle at £7 12s Bd on Tuesdav. but slipped again to '£,7. The Sidney issue started at £8 2s 6d. and after rising to sales at £8 •15s 9d, eased to sales vesterday at £8 . 10s and £8 8s 6d. The Western Australten shares gained more than lis to finish at about £7 8s 3d. Self ridges .and Shillings were r o given some ("attention, but the price was more ilerratic. t. Mining

Mining p Among mining issues, Mount Lyells fteid Mount Morgans had an exceedingly busy week, and both made substantial gains.

The Stock Exchanges of New Zealand have been exceptionally active this week, with increased business in most sections. The excellent prospects for wool and higher prices for meat' and metals have been an encouragement which investors in all classes of securities have found most stimulating.

Overseas cablegrams show that the wool market continues firm Bradford shows a rising tendency, and consumption is well" maintained. Clearances were excellent at the London sales.

There is no great interest in the grain and produce markets except that fowl wheat is firmer. The new crops have not yet begun to come in, and most sections are quiet in the meantime.

YESTERDAY'S TRANSAC-

[THE PRESS Special Service.]

DUNEDIN. January 15.

Markets continued active on call yesterday and industrials again attracted the bulk of the business. Price movements were irregular. LISTED STOCKS Sales on 'Change

£ s. d. 50 Natl. Bank of N.Z. .. 3 2 6 40 Union Bank of Aust. (cum div.) (2) 10 6 0 200 Goldsbrough Mort (2) • 1 17 10 50 Natl. Mortgage "A" 218 6 £550 N.Z. Loan and Mercantile Stock (ord.) q 208 United Bldg. Soc. (2) 10 0 300 N.Z. Breweries .. 2 17 3 2 16 10

(2) 2 16 9 100 Anthony Hordern .. 10 6. 50 British Tobacco .. 210 6 200 Broken Hill Pty. .. 4 2 10 (2) 4 2 11 200 Dunlop Rubber .. 0 19 2 0 19 1

350 Electro. Zinc (pf., cum div.) (2) 218 9 (3) 2 18 8 400 Hume Pipe (Aust.) .. 10 8 10 7 (2) 10 6 50 N.Z. Newspapers .. 2 0 9 25 Woolworths (N.Z., ord.) •• 7 0 0 400 Maori Gully .. 0 0 6J, 650 Mt. Lyell (3) 2 4 2 2 4 0 2 3 9 2 3 8 2 3 7 '■ . 2 3 6 2 3 3 900 Mt. Morgan .. 0 17 3 0 17 2 0 17 2.'» (2) 0 17 0 1 (6) 0 17 1 Sales Reported £IOOO Ch. Ch. City Council, 4 i p.c, 31/3/40-45 ..104 0 0 100 Comm. Bank of Aust. (cum. div.) .. 0 19 5 50 Comm. Bank of Aust. (pref., cum div.) .. 9 4 0 10 Union Bank of Aust. (cum div.) .. 10 6 0 10 Dalgety and Co. .. 11 14 0 300 N.Z. Refrig. (10s pd.) 0 9 6 100 Aust. Iron and Steel (pf.) (late sale Thurs.) 16 2 140 Dominion Fert. .. 1 4 0 100 Okarito .. 0 4 4£ 50 Mount Lyell .. 2 4 2 UNLISTED STOCKS Sales on 'Change 150 Woolworths (Syd., ord.. ex div.) , (6) 810 0' Sale Reported 50 Woolworths (Syd., ord.) ..■■ ■8- 8 6 Debentures A parcel of Christchurch City Council 44. per cent. Debentures, due 194045. changed hands at £lO4. Commercial. Bank of Australia had business at 19»-5d, market closing Id either way.—the preference were firm at £9 4s. National Bank of New Zealand appeared easier with sellers and business at 62s 6d, buyers at 625. Union Bank of Australia, cum dividend, remained unaltered at £lO 6s. Dalgety and .Company • were firmer with buyers and business at £ll 14s Goldsbrough Morts were fractionally weaker with buyers and dealings at 37s lOd.. National Mortgage were dealt in at 58s 6d, and further buyers at 58rfailed to attract sellers. New Zealand Loan and Mercantile Ordinary Stock was firmer with -buyers and dealing? at £4l 10s. United Building Society remained unaltered at 205.. New Zealand Refrigerating contributing were steady with sellers and business at 9s 6d. '■' New -Zealand. Breweries were easier with dealings at prices ranging from 57s 3d to 56s 9d. and more were offered at 56s lOd, buyers at 565. Miscellaneous Anthony Hordern were fractionally weaker at 20s 6d. A late sale of Australian Iron and Steel preference shares on Thursday was reported at 26: 2d—buyers yesterday offered 26s 3d, sellers at 275. British Tobaccos were firm at 50s 6d. Broken Hill Proprietary moved up to 82s lOd and 82s lid. Dominion Fertiliser were firm at 24s Dunlop Perdriau Rubbers were weaker at 19s 2d and 19s Id and these were sellers' and buyers' closing quotation: respectively. Electrolytic Zinc Ordinary were firmer en buyers' offers 56s 6d —the preference advanced to 58s 9d and 58s Bd, market closing 58s 7d-buy-ers. 58s 9d sellers. Hume Pipe (Australia) had dealings at 20s Bd, 20s 7d and 20s 6d, and more were wanted at 20s 7d, sellers at 20s 9d. Buyers' offers for Morris Hedstrom revealed a firmer market. New Zealand Newspapers had business at 40s 9d and more were wanted at that price. Woolworths (New Zealand) ordinary, dropped to £7. closing quotations £6 14s 6d buyers. £7 4s sellers. Mining Maori Gully were steady at 6|d. Okarito had business at 4s 4£d. Mount Lyells lost most of Thursday's gain with dealings at prices ranging from 44s 2d to 43s 3d.'and more were offered at the lowest price, buyers at 42s 9d. Mount Morgans relapsed to 17s 3d to 17s. Unlisted Stocks Woolworths (Sydney), ordinary, ex dividend, had dealings at £8 10s and £8 8s 6d, market closing £8 10s buyers, £8 10s 6d sellers. Self ridge's (Australasia) were firmer on buyers' offers <:os. DUNEDIN

There was considerable activity on the Dunedin Exchange this week. There was a buoyant tone for the majority of good investment securities, Australian shares being particularly strong. Bank of Australasias were dealt in at £l2, but no quotations for these shares were received on change. There was a steady demand for New South Wales shares" at £35 10s. but sellers did not respond. Business was reported at £35 15s. There was some activity in New Zealands, parcels changing hands at from £2 Is 6d to £2 Is. The market showed an easing tendency at the close when buyers offered,£2 0s 6d or nearly a shilling below the buying price last week. Commercial Banks were dealt in at 19s 6d and 19s Bd. The paid-up and contributing issues of New Zealand Refrigeratings were dealt in at £l, 03 6d and 9s 6Jd respectively. Several sales of Goldsbrough, Morts were made at £1 17s 6d and £1 17s 9d. New

FREELY

MARKET

TAINED

MORE WOOL

' AUCKLAND

LONDON WOOL SALES

HOME TRADE BUYING

(united press association— copyright.)

LONDON. January 14. At the wool sales. 9425 bales were offered, including 1810 bales from New Zealand. A total of 8681 bales was sold. There was a good selection offered consisting chiefly of Australian merinos. Competition was strong, especially for a small supply of erossbreds. Large clearances were effected, the Home trade securing the bulk. New Zealand lots sold as follows: Greasy crossbred, Putiti (top price 22d), average 18d.

BRADFORD TOPS

UPWARD TENDENCY MAIN-

LONDON. January 14,

The Bradford tops market is firm on an upward tendency. Consumption is fairly good. The quotations for 50 s, 4G's, and 44's are nominal. Quotations are: — Last Last Jan. year. week. 14. Merinos— d. d. d: 70's .. 34.', 42 42 64's .. 32. V 40 40 GO's .. 31 j 39 39 Crcssbrcds—58's .. 25V 34 34 58's .. 20. V 30 30 50'S ..16 46-s , .. 14 ■ 44's .. 13

GERMANY PRODUCES

ENCOURAGEMENT BY STATE

(UNITED I'IIKSS ASSOCIATION"—COPYRIGHT.)

BERLIN, January 14,

The Bremen Chamber of Trade reveals that Government subventions have resulted in an increase of 500,000 in the number of sheep in Germany. The total is now 4,400,000, yielding 12 to 15 per cent, of the country's wool requirements. The Government aims at 6,000,000 sheep yielding 30 per cent, of the country's requirements, at the end of the second year of the fouryear plan. Government decrees command the admixture of staple fibre to fix the v/00l quota for spinning mills* for the year ending September 30 at 40 per cent, of the amount used between April and September, 1934, which itself was 50 per cent, above normal.

TRADE WITH JAPAN

CERTIFICATES UNNECESSARY FOR CERTAIN GOODS

Certificates of origin for certain articles of New Zealand produce for export to Japan are no longer necessary since the satisfactory settlement of the trade dispute between Australia and Japan, according to advice received by Mr J. Roy Smith, secretary of the Canterbury Chamber of Commerce, from the honorary consul for Japan. Mr N. S. Falla,' of Wellington. A Japanese Imperial ordinance taking effect from January -1, however, applies a system of licensing to imports of wool produced in Australia, in accordance with the terms of the trade agreement between the two countries. A similar certificate of origin for New Zealand wool is still necessary under this ordinance.

EGG MARKET DEPRESSED

LONDON, January 14.

The egg market is depressed, and ciuotations, which are nominal, are as follows: —Seventeens Bs. sixteens 7s to 7s Cd, fifteens 6s 3d, fourteen.; 6s, thirteen and a half 5s 9d. •.

Zealand Loan r.nci Msrcantiles which were dealt in at '2i4l 103, advanced considerably, tne iinal buying oiler bem£ £4O. compared with £34 last wock. The market lor Westport Coals advanced and business at £1 3s Id was reported. There was a batter demand i'or Broken Hill Proprietaries, but business was recorded at £4 2s 9d. Colonial Sugars were the subject of business at ,£43 7s 6d. There was considerable activity in G. J. Coles shares, parcels changing hands at from £4 155.. to £4 19s 6d, cum dividend, and also at £4 17s 3d, ex dividend. Buyers of Wilson's Cements offered the improved price of £1 18s 6d and business was recorded at £1 19s 6d. There .was a good enquiry for various Brewery shares. New Zealands were sought after at £2 15s 6d. but sellers would not take less than £2 185.3 d. Business at £2 15s and £2 17s was recorded earlier in the week. Dunedin Breweries were enquired for at £.l 8s and Carltons at the firmer price of £3 ss, but no sellers came forward. Australian mining scares showed more activity than has been the case for seme time past. Ordinary Electrolytic Zincs, which were in demand at the stronger price of £2 17s 3d, cum dividend, were dealt in earlier in the week at £2 13s 3d and £2,155. cum dividend, while the preference issue was the subject of enquiry at £2 18s, compared with £2. 14s last week. Mcunt Lyells were unusually active, the shares changing hands at from £2 Os 6d to "5.2 4s 6d. Mount Morgans were dealt in at 17s 3d and 17s 4d. Rhodesian Securities Trusts were the subject of business at £1 15s. There was a fair demand for New Zealanc" mining shares, but values, as a whole, showed little change from those ruling last week. Okaritos were dealt in at 4s 9d and Mossy Creeks were the subject of business at Is 3d. There was a steady demand for Government loans, a slight improvement being noticeable in all issues. Business in the 4 per cent. Stock, 1946-49 at £lO2 10s, the 4 per cent, bonds, 1952-55. at £lO2, and the corresponding stock at the same figure were reported.

[THE PRESS Special Service] AUCKLAND, January 15. Operations in the investment market this week were widely spread, but banks and miscellaneous industrials were particularly active, and the week' saw some new peak levels in the latter group. Australian issues were again very strong, reflecting the increasing resources as a result of improved conditions in the Commonwealth. A feature of business has been the recovery in the Government loans • market, which, after touching low levels at the close of last year, has hardened as much as 2 per cent, in some cases. The' redemption of the 1937 loan this week has brought a large supply of additional investment funds into the market, and some are being returned to gilt edge at an advantage. Banks have received strong support since the year opened. Insurances were very active. There was a substantial turnoved of South British, with a rise of 9d ud to 95s over the week. New Zealands hardened Is 6d to 61s 9d. and Nationals were also firmer. Heavy trading was done in miscellaneous investments.