FINANCE AND COMMERCE

Press, Volume LXXIV, Issue 22337, 26 February 1938, Page 14

FINANCE AND COMMERCE

WOOL FIRM AT WANGANUI

METALS SHARES RISE

Values were firm at the Wanganui wool sale yesterday when about 80 per cent, of a catalogue of more than 20,000 bales was cleared. Competition, which was more widely spread than at the January sale, came mainly from the Continent, but Bradford was active on certain lines. France bought lambs' wool freely.

Base metals shares have had a very active week on the Stock Exchange, and in most instances have shown good rises over the week. Prices rose sharply till Thursday, but the drop yesterday still left most of the week's gains.

Lamb at Smithfield is easier, but consumption is good for the time of year. Mutton, excer' lightweights, is also slightly easier. Chilled and frozen beef have both improved.

The Bradford market is steadier and has a better tone. Many operators consider that the bottom of the market has now been reached.

SHARE MARKET REVIEW

A MORE ACTIVE WEEK

METALS AND CHAIN STORES IMPROVE

<BT OU» COMIiSBCIAL EDITOBj

The share markets have had one of the most active weeks for some time, and have displayed a strength that has been noticeably absent since the closing months of last year. The activity was mainly confined to base metals shares following the improvement for metals on the overseas markets, but the rise in this section influenced most other sections also. The spurt showed conclusively that there is no real feeling of depression among investors, as the encouragement provided overseas was immediately reflected on the market here and in Australia. The week was one of events which might have been expected seriously to disturb the British markets, but after a hesitant day or so immediately following the Cabinet crisis, the markets settled down to freer bidding and rising prices all along the line. There are indications that the rearma-

ment programme which is in prospect in the United States has already had its effect in restoring some degree of confidence there, and as the New York Exchange has rallied, markets all over the world have followed. At the end of the week there was a writing back of values which was fairly general, but this was probably no more than the natural reaction to the somewhat excited markets earlier.. Turnover day by day was:— This week. Last week. £ £ Saturday 4,550 1,576 Monday «. 4,081 7,897 Tuesday „ 4,517 9,236 "Wednesday _ 7,647 5,744 Thursday *. 13,862 10,507 Friday .. 4,642 7,163 Total ~ 39,299 42,123 / Dealings in the different sections were:— Shares. Value. No. ■ £ Government ..

Banking .. 1,045 1,920 Loan and agency 215 168 Refrigerating 500 466 Breweries .. 850 1,608 Miscellaneous 15.464 25,823 Mining .. 9,725 8,386 Government Government issues remained very firm, with the usual strong chorus of buyers and no sellers. Rates were inclined to harden further. Only one transaction was made, a sale of the 3£ per cent, 1953-57, at £97 15s, a rise of 10s in a month.

Banks were quiet, and about steady to slightly weaker. Commercials of Australia had fair trading at 16s 7d till the end, when there was a loss of a penny. National of New Zealand had some transactions at £2 13s 6d, about 6d lower than recent values, and New Zealands, after rising to a sale at £2 3s, were weaker at the finish. Unions remained steady at £9, but there was not a great deal of interest in the section as a whole. Loans were scantily supported. A sale of Dalgetys, at £8 6s, an improvement of Is on recent rates, was made, but New Zealand Guarantee Corporation were definitely weaker, with business at 4s 4d. Refrigerating shares were dull, and inclined to be weaker, and coals were not well supported. New Zealand Breweries and Ballins were the only stocks to show any activity in this section, and both were about steady, New Zealands losing a penny at the close. Miscellaneous Metals and chain stores provided the bulk of the business in the miscellaneous section, and both were exceedingly active from Tuesday till Thursday. Prices in general rose sharply, but fell at the close, not so much, however, as to dissipate all the earlier gain. Broken Hill Proprietaries, which were done on Tuesday at £3 Is 3d, rose sharply to sales at £3 2s 7d, but lost

a few pence' at the end, and the contributing finished firmer than they began. Electrolytic Zincs, which were more active than for some weeks, rose about Is 6d. and held all but 4d of the rise. The preference rose more sharply, and came back eventually to the opening level. The chief interest among chain stores was in Woolworths, Ltd., which had a rush of buyers after the dividend and bonus announcement. The price went from £ 1 5s 9d to £ 1 8s 6d in sales, but came back to round £1 6s 9d. The New Zealand issue showed a sympathetic but much less marked rise and fall. G. J. Coles had active trading and showed a gain on

the week of 2s 9d to £4 2s. British Tobacco showed an encouraging firmness, improving steadily throughout the week, and Dunlops. which were quiet, improved fractionally on the finishing price of last week. Taranaki Oils rose at the opening to sales at 6s lid, but declined steadily to lose 7d by the end. Mining: In the mining section, shares concerned with base metals were particularly active, and all registered good gains, in spite of some loss at the close. Broken Hill North, which were done at just under £2 9s at the beginning of the week, rose to sales at £2 13s, and finished a little better than £2 lis. Norths rose from sales at £1 12s 4d to sales at £1 15s, and finished at £1 14s 6d. Lyells were very active, and finished with a net gain of about Is 3d, with sales at £1 lis 3d. the best price since the beginning of the month, and Morgans, after rising to 10s 4d, finished at 9s lid, a gain of better than lOd on the week and the highest price for a month. Rawang Tins had some business, and there was also more interest than usual in Dominion jrold shares.

YESTERDAY'S TRANSACTIONS

Markets were quiet on call yesterday and prices of several stocks dealt in showed an easing from the highest ooints reached on Thursday.

Apart from vestibule business, the following transactions were recorded: LISTED STOCKS Sales on 'Change

£ s. d.

£950 N.Z. Govt., 3J p.c. Ins., 1953-57 (2) 97 15 0 100 Coram, of Aust. .. 0 16 6

100 N.Z. Guarantee Corpn. 0 4 4 150 British Tobacco ~ 2 9 3 (2) 2 9 4 100 Broken Hill Pty. (2) 3 2 4 150 Electro. Zinc (ord.) 2 7 6 2 7 1 50 Electro. Zinc (pf.) .. 2 8 3 50 G. J. Coles .. 4 2 0 100 United Provisions .. 0 6 3 400 Woolworths (N.Z.) .. 116 1 1 3 (2) 110 300 WooJworths (Syd., cum div and bonus) (3) 16 8 100 Woolworths (South Africa) .. 0 15 0 200 Grey River (2) 0 11 6 300 New River .. 0 0 6 50 Broken Hill South .. 1 14 6 100 Mount Lyell .. 111 3 100 Mount Morgan .. 0 911 50 Wellington Alluvials 0 5 3 Sales Reported 100 N.Z. Refrig. (£1 pd.) 018 9 300 Dunlop Rubber (2) 13 0 100 Woolworths (Syd.) 1 6 11 300 Woolworths ' (South Africa) (2) 0 15 0 200 Mount Morgan .. 0 9 11 Government New Zealand Government 3i per cent. Stock, due 1953-57, changed hands at £97 15s, and more was wanted at that price. Commercial Bank of Australia were fractionally weaker with sellers and business at 16s 6d. New Zealand Guarantee Corporation were firm with buyers and business at 4s 4d. sellers at 4s sd. New Zealand Refrigerating, fully paid, had business al 18s 9d. Miscellaneous British Tobacco were firm with dealings at 49s 3d. 49s 4d, and further buyers at 49s 3d, sellers at 49s 6d. Broken Hill Proprietary lost all of Thursday's gain with dealings at 62s 4d, and further sellers at 61s 9d, buyers at 61s Bd. Colonial Sugar were firmer on buyers offers £45 17s 6d. Dunlop Rubber advanced to 23s and there were further buyers at 23s 4d, sellers at 23s Bd. Electro. Zinc were easier with dealings at 47s 6d and 47s Id, and further sellers at the lower price, buyers at 47s —the preferences dropped to 48s 3d, closing quotations 2d on either side. G. J. Coles were weaker at 82s, but closed with buyers at 82s 2d, sellers at 82s sd. United Provisions had business at 6s 3d. Woolworths changed hands at 26s lid and 26s 8d and more were wanted at the lower price, sellers at 26s 9d. Woolworths (New Zealand) relapsed to 21s 6d. 21s 3d. and 21s. and there were further severs at the lowest • figure, buyers at 20s 9d. Woolworths (South Africa) rose to 15s, closing quotations Id on either side. Mining: Grey River (8s 9d paid) were firm at lis 6d, and more were wanted at lis sid. Broken Hill South (cum div.) relapsed to 34s 6d closing weaker with sellers at 34s 3d. Mount Lyells dropped to 31s 3d and more were offered at 31s 2d. Mount Morgans receded to 9s lid. sellers staying in at that price, buyers at 9s lOd. North Broken Hill, which reached 53s on Thursday, were available at 51s, buyers at 50s 9d. Wellington Alluvials had business at 5s 3d. DUNEDIN

[THE PRESS Special Service.]

DUNEDIN, February 25.

Increased activity through the sharp rise of the English markets for base metal stocks resulted on the local Stock Exchange in one of the most competitive displays of bidding seen for a considerable time. It was not until Wednesday that the market awoke, and investors anxious to secure holdings in many of the better-class metal stocks dropped their cautious attitude and entered th<? market with real enthusiasm. Speculative interest was rife on Wednesday and Thursday, but thereafter a slackening tendency developed and price levels began t» recede. The sales list, which included shares from practically every section of the market, was the largest this year. Australian mining stocks and Commonwealth chain store enterprises however provided the bulk of the transactions. Although a reaction set in toward the close, it was not altogether unexpected, for values improved with startling rapidity. As way the case during the previous period, Sydney Woolworths experienced heavy trading at prices ranging from £1 5s lOd to £1 Bs. Other Comrnonvveath- industrials to claim attention were Colonial Sugars, two parcels of which were dealt in at £46 ss, Cox Brothers (both issues), and G. J. Coles. Broken Hill Proprietaries reacted to the brighter conditions of the metals market, but vendors' limits were more than buyers were prepared to go and no business was recorded. Mount Lyells led the way in trading in a particularly active section. A sharp rise in values to sales at £1 lis 9d attracted a fair number of speculative buyers, and this resulted in some keen competition. Broken Hill Souths, Electrolytic Zincs, Mount Morgans, and North Broken Hills all had their regular quota of buyers and were all dealt in at rising prices. Buying interest was not pronounced to-day, however, and in the majority of cases values finished easier. Investors continue to give Dominion industrials scant attention, and for the period under review interest was at a particularly low ebb. Dominion Fertilisers and Taranaki Oils were the only Dominion stocks dealt in, the latter shares dropping sharply from sales at 6s lid to business at 6s 6d, with a further fall at the close. Business in the banking section, which was quiet again, was confined to two sales of New Zealands at £2 3s, a ,§ale of

New South Wales at £32 2s 6d, and a transaction in Commercials at 16s 7d. Ordinary HuddartjParkers continued the upward tendency osf the previous

week, but although a persistent buyer offered up to £2 4s 3d he could elicit no response from holders. With this exception, shipping shares revealed only minor movements. Insurances were subdued, Nationals being the only shares to be dealt in. Meat preservin/? stocks were poorly supported , and New Zealand Refrigerating paids had a sale at the slightly easier price of 18s Bd. Westport Coals were more active than they have been for a considerable time. The only other issue in this section to be dealt in was ordinary Westport-Stockton, a parcel changing hands at the previous week's price of 3s. New Zealand Guarantee Corporations, which had a sale at 4s 6d. represented the only sale among loan and agency stocks, rmd brewery shares were included among the week's business with a sale of New Zealands at £2 5s 7Jd. All issues of Government loans were inquired for regularly, but it was not until the end of the period that there were many sellers in evidence. The 3J per cent, stock, 1938-52, had three dealings at £lO3, the 4 per cent, 1943-46, had transactions at £lO2 10s, and a parcel of 4 per cent, bonds, 1943-46, was dealt in at £lO2 10s.