FINANCE AND COMMERCE

Press, Volume LXXIII, Issue 22004, 30 January 1937, Page 10

FINANCE AND COMMERCE

STOCK EXCHANGES ACTIVE

SHARE MARKET REVIEW

WEEK OF STEADY

TRADING

NEW ZEALAND ISSUES MORE

POPULAR

(BY OITR COMMERCIAL EDITOR.)

Turnover has kept up well on the Christchurch Stock Exchange this week* and the market, though it has been somewhat erratic in sympathy with the Australian exchanges, has been active over a wider range of stocks. Australian issues have as usual been most popular, but there has been decided evidence of an inclination on the part of investors to examine the possibilities of New Zealand shares more closely. There has been a good deal of neglect of Dominion issues in recent months, but with most Australian market leaders now valued as fully as present and future indications would suggest is prudent, an outlet has been sought in domestic shares. Thera still exists a large weight cf money in New Zealand waiting for investment more profitable than fixed deposit rates offer, and this Is undoubtedly making itself felt. Turnover day by day was: —

Government Loans There was little activity in the market for Government loans, but in the main the market tended to harden. The disturbance caused by the response to the conversion operation has to some extent lost its effect, and buyers of fixed interest securities appear to be more plentiful. There was some interest in debentures, and several parcels of local body issues changed hands.

The banking section was considerably better supported than has been the case lately, but values fluctuated. The 10s Commercial of Australia rose steadily throughout the week to gain 3d. Like several other banks, E. S., and A. were cheaper at the end of the period. The rise of last week continued till prices rose to £6 6s, but a parcel was done yesterday at £6 ss. National of Australasia, £5 paid, were done at £7 12s 9d, and New South Wales had sales at £36, and yesterday at £35 12s 6d. Unions, ex dividend, were done at £lO 12s 6d. New Zealands, which last week showed a disposition to rise, were weaker, though only slightly so. National Insurance, for which there was a fair enquiry, were done at 18s 3d. fractionally firmer. Dalgetys had one sale at £ll 4s, cheaper than recent sales, but Goldsbrough, Morts, after an erratic week, finished round 3d dfearer than they were at the end of last week.

Frozen meat shares were strong till the end of the week, when there was a slight fall in values.

Breweries Brewery shares, which have been, if not neglected, at least not strongly sought after recently, were constantly in the picture. New Zealands, which for some time have looked cheap enough, had a good turnover throughout the period at prices which showed a consistent gain. The market has expectations of these shares. Tooths were also traded actively at prices well above recent rates. Miscellaneous investments were erratic, and prices here followed very closely trends on the Australian markets. Australian Glass, till the middle of the week, fully held the advance of the previous period, but thereafter there was a slight easing, which holders did not find acceptable. Australian Iron and Steel continued the improvement of last week. British Tobacco did not maintain the recent rise at the end of the week. Broken Hill were distinctly cheaper, though toward the end of the week they were actively traded. At the beginning of the period, G. J. Coles were cheaper than the finishing price of last week, but later picked up, and yesterday displayed a considerable gain. Dunlops were a little erratic, but on the whole held their ground well. As base metals prices eased, Electrolytic Zincs eased too, but only a few pence of the recent rise were lost. Hume Pipes had an active market, and rose in price steadily, to finish at £1 2s. The Woolworths issues were again actively traded, and prices on the whole were better. The New Zealand issue, though the higher rates of last week were not held early in the period, rose toward the end. The Sydney issue was actively traded, specially toward the end of the period, and prices rose. The Western Australian shares were fairly steady, but at a level higher than that of last week. , Apart from Mount Morgan and Mount Lyell, there was no great interest in mining. Both the Australian issues were slightly cheaper on the week.

AUCKLAND

BRITISH WAR LOAN

(BRITISH OJTICIAL WIRELESS.) RUGBY, January 28. , War Loan, 3J per cent., is quoted at &m iss _

BUTTER MARKET STEADIER

The London butter market shows a slight improvement after a period when it was weaker and not encouraging. Prices have risen a little, and the market is now reported to be quiet but firm.

The Stock Exchanges have been very busy this week, and in most centres a wide range of activity has been noted. Prices have been erratic, but on the whole fairly firm.

The market for wool at Bradford appears to be easier, but consumption is well maintained.

YESTERDAY’S BUSINESS

LISTED STOCKS Sales on ’Change £ s. d.

UNLISTED STOCKS Sales on ’Change 65 Woolworths (Sydney, ord.) (2) 8 15 0 Sales Reported 50 Selfridges (A/asia, new) .. .. 22 0 Debentures Wanganui Harbour 4J per cent, debentures, due 1940-44, changed hands at £lO4. Bank of New South Wales were firmer, with sellers and business at £35 12s 6d. Bank of New Zealand eased to 40s 6d. Union Bank of Australia were firm at £lO 12s 6d, market closing 6d either way. A late sale of National Insurance on Thursday was reported at 18s 3d, and there was further business at that price yesterday. Dalgety and Company recovered to £ll 14s, and more were wanted at lhat figure. N.Z. Refrigerating, fully paid, were easier at 20s 6d, market closing 2d either way—the 10s paid had dealings at 9s 6d and 9s sd, and there were further sellers at the lower price. Kaiapoi Woollens appeared easier at 14s 6d—buyers of the 7s paid raised their bids to 5s 4d. West-port-Stockton Coal changed hands at 3s sd. An odd parcel of Ashburton Gas was placed at £6 7s 6d. Auckland Gas were fractionally weaker at 23s 6d. New Zealand Breweries showed an easing tendency with dealings and further sellers at 57s 3d. Tooths were firmer on buyers’ offers, 56s 7d.

Miscellaneous Broken Hill Proprietary were active at prices ranging from 81s 6d to 80s 9d, and the contributing at from 68s 3d to 67s 4d; Dunlops were fractionally firmer, at 18s lOd. Electrolytic Zincs were weaker, with sellers of the ordinary at 545, and of the preference at 55s Bd. G. J. Coles were firmer at 97s 6d to 975. Hume Pipe (Australia) advanced to 225, and there were further sellers at that price. Morts Dock had business at 13s 2d, and more were offered at 13s Id. N.Z. Farmers’ Co-op. 4£ per cent, stock, due 1941, ex interest, changed hands at £94. Whilcombe and Tombs were firm at 635.

Mining Blackwater Mines had business at 28s 7d. Okaritqs changed hands at 4s Bd. Waimumu ‘were firm at lid and Hid. Mount Lyells dropped to 42s and 41s 7d, and more were offered at 41s 7id, buyers at 41s 6£d. Mount Morgans were fractionally weaker at 16s lid to 16s lOd, and more were wanted at the lowest price.

Unlisted Stocks Selfridges (Australasia), new, were firmer at 425. Woolworths (Sydney), ordinary, were easier with sellers and dealings at £8 15s.

[THE PRESS Special Service.]

AUCKLAND, January 29,

The buoyancy which the investment market has displayed since the opening of the year was fully maintained h.i last week’s trading, for the third week-in succession, and a heavy turnover was completed on the Auckland Stock Exchange,, in spite of the shorter period, with dealings spread widely throughout most sections of the market. Although business in Australian issues, particularly retail stores, again contributed largely to the week’s turnover, trading was not dominated to the same extent as it was a short time ago. With high levels ruling in many of. these securities, investors are searching for new avenues for capital appreciation. Banks and breweries have gained particular prominence,

PRIME MINISTER’S EXPLANATION

PRINCIPLE

(PRESS ASSOCIATION TELEGRAM.)

Markets were exceptionally active on call yesterday, and there was a good volume of diversified business, with heavy trading in some Australian industrials.. Price movements were irTransactions, exclusive of vestilftle business, were:— j

DUNEDIN

PROPERTY SALES

DEPOSIT MONEY INTEREST

CONTINUING ESTABLISHED

WELLINGTON, January 29.

An explanation of the new regulations fixing maximum rates of interest payable in respect of the period after March 31, on deposits made with building and investment societies and with trading companies, was given today by the Prime Minister as actingMinister for Finance. The regulations were gazetted this week. Mr Savage said that under the National Expenditure Adjustment Act of 1932, the Governor-General-in-Coun-cil was empowered to fix the maximum rate of interest that might be paid by building and investment societies and by trading companies on moneys deposited with any such societies or companies. It was, however, provided by that act, as amended by the Finance A.ct of 1934, that no Order-in-Council should apply for any period commencing after March 31, 1937. From time to time successive Orders-m-Council have been issued fixing the maximum rates of interest on such deposits, each such order applying only to new deposits made after the issue of the order, and to renewals made after that date of deposits made before such date. The last Order-in-Council (applicable to deposits made on or after August, 1934) fixed the rates as follows: Trading Bld.soc. companies p.c. p.c. Call and under 3 mths. 2 2i 3 to 6 months .. 2J 3i 6 months to 1 year .. 3 3j 1 year to 2 years .. 3\ 4 2to 3 years .. SI 4V 3 years or over .. 4 43

As stated above, existing Orders-in-Council have no application to any Ijeriod after March 31, 1937. This limitation was removed by Section 46 of the Finance Act of last session, thus permitting the Governor-General-in-Council to fix maximum rates of interest without any limitation of time. The Prime Minister states that it is considered necessary in the interest of the Dominion that the Government should still retain control of rates of interest that may be paid on deposits with trading companies and building and investment societies, and accordingly Orders-in-Council were issued on January 21 continuing for a period after March 31 next the same maximum interest rates that are at present in force in respect of deposits made with trading companies and building and investment societies.

and greater confidence is being displayed in a wider range of New Zealand industrial and trading investments. The pressure of a substantial weight of funds released by the Government’s redemption loan has no doubt been a strong factor on the market, and its influence has not yet been fully expended. The leading Australian banks all sained considerable ground. London is still supporting these shares solidly. New Zealands were very active at 41s. Insurances were firm, with South British active at £4 ,15s 6d. Further expectations are apparent in breweries, for which there was greatly improved support. Dominions, Staples, and New Zealands all moved to higher levels. The accounts of Staples ore due and rumours have been renewed of a favourable announcement. The Australian group of miscellaneous investments was popular, but on this market they were quieter, and levels fluctuated. More business was done in mining. Marthas were firmer, but Waihi Investments were particularly active.

[THE PRESS Special Service.] DUNEDIN, January 29. Although a smaller volume of business was recorded on the Stock Exchange during the week than was the case during the previous period, there has been a marked steadiness in the market for most investments, which met with a firm enquiry throughout the week. Bank of New Zealands were disposed of- at prices ranging from £2 Os Cd to £2 Is, and Commercials showed a fractional improvement, with business at 19s 8d and 19s lid. The contributing National Bank of Australasias were disposed of at £7 14s. There was little change in the market for insurance shares. Nationals were dealt in at 18s 3d. Union Steam preference shares met with slightly firmer enquiry, and the contributing New Zealand Refrigerating issue changed hands at 9s 6d and 9s sd. Dalgety shares met with a stronger enquiry, and there was a steady demand for Goldsbrcugh, Morts. Despite the announcement that in addition to the customary 5 per cent, dividend the National Mortgage intended paying a bonus of U per cent., there was little enquiry for these shares. New Zealand Loan and Mercantiles were easier. Westport Coals, however, advanced to business at £1 3s 6d. Associated News preference shares changed hands at £1 4s. and British Tobaccos had business at £2 12s 3d. There was an easier.tone in the market for Broken Hill Proprietaries, business in which was recorded at £4 2s and £4 Is 6d. The contributing issue was also dealt in at prices ranging from £3 9s 3d to £3 7s 9d. Consolidated Bricks were disposed of at 10s 6d. and Dunlop Rubbers had business at 19s and 18s lOd. G. J. Coles shares continued to ease, and a number of parcels changed hands at £4 18s and £4 17s. Earlier in the week New Zealand Drugs were fractionally firmer, and business at £3 16s 6d was recorded. Ordinary Woolworths shares changed hands at £7 14s, and Shillings had business at 18s lid. New Zealand Breweries were disposed of at £2 17s, and Staples were in slightly firmer demand. Dominion Breweries were also slightly stronger. The market for both issues of Electrolytic Zincs weakened steadily, but Broken Hill Souths showed an improvement. Mount Lyells changed hands at £2 2s 9d earlier in the week. A slightly firmer demand was noted for Mount Morgans, which had business at 17s Id. There was very little change in the market for New Zealand mining shares, the only business recorded being a sale of Marthas at £1 Os 6d. There was a steady enquiry ■for the various issues of Government loans. Business in 3J per cent, stock, 1938-52. at £lO2. the 4 per cent, stock, 1946-49. at £lO4, and the 4 per cent, stock, 1952-55, at £lO3 was recorded.

W. E. Simes and Co.. Auctioneers, and Estate Agents, 144 Hereford street, report having sold, on behalf of Mr Claude, his property. Wairarapa road. Bryndwr, comprising dwelling and poultry houses and fowls, as a going concern, to Mr W. Shaw. —1

Messrs Ford and Hadfleld. Ltd., have to report having sold the property. 77 Medway street, in the estate of Henry Montague (deceased), comprising 7 roomed residence and 1 rood 1.4 perches of land, at a satisfactory figure^.

Saturday This. week. £ 4,013 Last week. £ 7,812 Monday 6,260 8,310 Tuesday 11,861 10,815 Wednesday 12,055 7,156 Thursday 9,918 11,657 Friday 13,696 10,198 Total .. 57,803 56,008 Turnover in the different sections was:’— Share. Value. 1 No. £ Government, ♦ — 315 Debentures ■ 940 Banking ' 1.553 5,554 Insurance 350 319 Loan and Agency 1,095 3.087 T351 Refrigerating 1,970 Breweries . 3.150 7,817 Miscellanefius 11,528 31,780 : Mining . 9,979 6,652

50 Bank of N.Z. 2 0 6 75 Union Bank of Aust. (ex div.) (3) 10 12 6 200 National Insurance (2) 0 18 3 25 Dalgety and Co. 11 14 0 100 N.Z. Refrig. (£1 paid, cum div.) 1 0 6 300 N.Z. Refrig. (10s paid, cum div.) 0 9 6 , (2) 0 9 5 100 Kaiapoi Woollens (17s paid) 0 14 6 .600 Westport-Stcckton Coal (pref.) (4) 0 3 5 300 N.Z. Breweries (4) 2 17 3 400 Broken Hill Propty. .. 4 1 0 (2) 4 0 11 (2) 4 0 10 (3) 4 0 9 750 Broken Hill Propty. (contr.) (3) 3 8 0 3 7 11 3 8 0 3 7 6 (2) 3 7 5 3 7 4 3 7 5 300 Dunlop Rubber (3) 0 13 10 150 G. J. Coles 4 17 3 (2) 4 17 0 100 Hume Pipe (Aust.) .. 1 2 0 100 Morts Dock 0 13 2 £200 N.Z. Farmers’ Co-op. (4i p.c. stock, 1941) 94 0 0 100 Okarito 0 4 8 lODO Vv Eimumu Sluicing C20 t> o IT. 300 Mount Lyell 2 2 0 (2) 2 1 7 650 Mount. Morgan (2) 0 16 11 (2) 0 16 104 (4) 0 16 10 Sales Reported £300 Wanganui Harbour Board, 4$ p.c., 1/4/44 104 0 0 5 Bank of N.S.W. 35 12 6 10 Union Bank of Aust. 10 12 6 150 National Insurance (late sale, Thurs.) 0 18 3 17 Ashburton Gas (odd parcel) 200 Auckland Gas (cum 6 7 6 div.) 1 3 6 100 Broken Hill Propty. 4 - 1 6 4 ‘"1 3 250 Broken Hill Propty. (contr.) (3) 3 8 3 150 G. J. Coles (3) 4 17 6 100 Whitcombe and Tombs 3 3 0 100 Blackwater 1 8 7 500 Waimumu Sluicing .. 0 0 Hi 100 Mount Lyell 2 2 0