FINANCE AND COMMERCE

Press, Volume LXXIV, Issue 22551, 5 November 1938, Page 14

FINANCE AND COMMERCE

LONDON LAMB MARKET DEPRESSED STOCKS MORE ACTIVE IN SYDNEY Heavy supplies of home-killed continue to depress the London lamb market. New Zealand prime lamb is still selling above best quality home-killed, but trade in wethers and ewes is slow, with prices easier. Best quality chilled beef is firmer. The Sydney share market yesterday showed more activity round late levels, with a hardening tendency. The Melbourne market was quiet, with few variations. Australian Glass eased,. but improved again at the close. They were sold at £5. More interest was shown in Fijian gold shares. The value of New Zealand's exports in September was lower by £718,000 than in September of last year. Imports fell by £582,000, leaving an enlargement of the adverse balance of £136,000.

SHARE MARKET REVIEW INVESTORS SHOW CAUTION AUSTRALIAN ISSUES STILL SOUGHT Investors on the Stock Exchange have been even more cautious this week than last, and the volume of business put through was small. Immediately before and after the election business was brisker than it had been for some time, but it has slipped back sharply in the last two weeks. Turnover this week was £18,913, compared with £19,590 a week ago. This is just about half the business put through weekly between October 8 and October 22, when the total • fluctuated between £30,000 and £42,000. ' The demand for Australian industrials was still the strongest influence! in the market, although, of course, it | was not quite so pronounced as it has been. ' Prices for Australian shares generally moved between fairly narrow limits. An exception was Australian Glass, which firmed, following the rise in Australia, to £4 19s. Outside of Christchurch, they, rose by. 3s 6d to £5 Is. Although investors show a marked preference every day for Australian shares, they are, nevertheless, watching the Australian market carefully. Company profits this year will be affected by the national insurance legislation there, and it has been estimated that the equivalent of 1 per ceru. dividend can be allowed for this charge. ' Trading in Government debentures was slightly heavier during the week than last week, but buying support was never really strong, and prices consequently eased. The 3$ per cent. 1933-57 stock was placed at £93 10s, the 1955 stock at £99 10s, and the 1949 at -<£99» . Bural bonds were firm in other centres at £99 ss, Commonwealth 4 per cent., 1947, at £lO2 15s, and New Zealand 3 per cent., 1939-41, at £9B fis. ■' ... Bank shares were again quieter, with the movements of prices irregular. New Zealand issues-rwere in moderate demand, but they sank .to still lower t levels. Nationals were sold at from £2-10s to £2 10s 3d, compared with £2 10s 3d and £2 10s 6d last week. and New Zealands at from £2 0s lOd to £2 0s 3d. Sale price for New Zealands last week was £2 Is 3d. Generally speaking, there were more sellers than buyers in the classified section, and prices were irregular. Dalgetys and Goldsbrough, Morts were the only loan shares sold, arid they were both weaker, and the only transaction in breweries was in New Zealands at the firmer price of £2 0s 9<L In the miscellaneous section, Broken Hill Proprietary, Dominion Fertiliser. G. J. Coles, Taranaki Oilfields, Wilson's 1 Cement, and Woolworths, Ltd., were all easier. The only shares to advance were Australian Glass.

South Brokens, Mount Lyells, and Mount Morgan ordinaries all eased, an£ Mount Morgan preference moved up to £1 Is 10i± Wellington Alluvials were fractionally weaker at ss.

TREND OF DEALINGS The trend of dealings was as follows: Government—New Zealand Government 3J per cent., 1953-57 stock. £93 10s; 1955, £99 10s; 1949, £99. In other centres, Rural Bonds firm at £99 ss, Commonwealth, 4 per cent.. 1947. at £lO2 15s. and New Zealand 3 per cent.. 1939-41, at £95 10s. Banks—E.. S.. and A., £5 8s and £5 9s; National of New Zealand, £2 10s 3d to £2 10s; New Zealand, £2 0s lOd to £2 10s 3d: Commercial of Australia. 16s lOd. Outside Christchurch: Australasia, £lO 6s; National of Australasia, £l4 7s and £l4 6s; Union, £8 14s 9d. Z.oan and Agency — Dalgefyjs. £7 18s: , Goldsbrougb. Morts. £ 1 Bs.■-'■' j Frozen Meat—New Zealand Refrig-; erating. 17s. Outside Christchurch: New Zealand Refrigerating (partly paid). Bs. Breweries—New Zealand. £2 0s 9d. Other centres: Carlton. £3 ss; Dominion. £1 12s 6d; Dominion (preference). £1 15s: Queensland. £1 5s 7d. Miscellaneous—Australian Glass, £4 19s; British Tobacco. £2 8s 3d: Broken Hill Proprietary. £2 J7s 9d. £2 17s 6d: Colonial Sugar. £4B 7s 6d; Consolidated Brick. 7s 5d and 7s 6d; Dominion Fertiliser £1 3s 4d: Dunlbp Rubber. £1 0s 4d. £1 0s 6d: Electrolytic Zinc. £2 5s 3d. £2 5s 4d: Electrolytic Zinc (preference). £2 8s; G. J. Coles. £3 19s. £3 19s 7d; McKenzies. £2 18s 6d; T.C.I. (Australia and New Zealand, preference). £1 3s: Taranaki , Oilfields. 13s 3d; Wilson's Cement. 16s 6<i. IBs 4d: Wool worths. Ltd., £1 0s lOd. £1 0s 9d; ■Woolworths, (New Zealand). 18s lid: Woolworths (Sn?ith Africa). 14s lOd. Other centres: Northern Roller Mills (preference) 18s 3d: Peters Ice (New Zealand). £1 3s: Morts Dock, lis lid. 12s: JVlotiirog Oil. ss: Farmers* Trades. 19s 6d. 19s 9d: Australian Iron and St.e«i (prefer-erce), .£1 7s 7d;. Burns. Phiin. £2 13 S 3d. Mining—The local turnover of 4250 shares vo<! mad° ur> a«s follows: Brok«*n Hill South. 45<v 350; Mount Morgan. -11 SO: -Mount IMorgan (nr-ofp-onro) 100: AHuviais. .1(10: Biq Biv°r. 1000: GuIIy. 1000: Waihi Investments. 100. Prices—Big River. Is OJd; Maori

Gully, 6Jd; Waihi Investments, 9s; Broken Hill South, £1 lis lOd, £1 lis 9d, £1 lis 8d; Mount Lyells, £1 9s 3d; £1 9s 2d; Mount Morgans, 10s 6d to 9s lid; Mount Morgan (preference). £1 Is 10£ d; Wellington Alluvials, ss.

YESTERDAY'S BUSINESS Markets continued dull on call yesday and dealings were restricted to a few stocks, in which there was a moderate turnover. New Zealand Government 4 per cent Stock, due 1949, eased to £99. Commercial Bank of Australia were fractionally firmer at 16s lOd, market closing Id either way. National BanV of New Zealand were fractionally weaker at 50s 2d. market closing 50j buyers, 50s 3d sellers. National Insurance (cum div.) changed hands at 15s 9d and more were wanted at that price. Goldsbrough, Mort fell to 28s, and there were further unsupported sellers at 28s 4d. Buyers of Tooth's Breweries raised their bids to 55s 3d, but sellers wanted 55s 6d. - G. J. Coles were fractionally weaker with sellers and dealings at 79s 6d. buyers at 79s 3d. 1.C.1. (Australia and New Zealand, pref.) were a shade stronger with dealings at 22s lid, and 235, and further buyers at the higher price. Taranaki Oilfields remained unaltered at 13s 3d. Woolworths (New Zealand) were firmer on buyers' offers 19s Id. Sellers of Broken Hill South. reduced their limits to 31s 5d Mount Lyell were fractionally weaker with dealings at 29s 2d and further sellers at 29s Id. Unlisted Stocks —Ballins Breweries eased to 10s sd.

AUCKLAND (THE PRESS Special Servlce.l AUCKLAND, November 4. Although the week on the Auckland Stock Exchange was a busy one, the basic tone of the investment market has been devoid of significant change. Price movements narrowed considerably as the market continued to settle down after the disturbance of the General Election, but unfavourable pri-mary-production reports and labour troubles have created new fears, which are increasing investors' shyness of New Zealand issues. Turnover was again largely in leading Australian stocks, which were much steadier during last week. The outlo»k there is becoming dominated by the early launching of a big loan conversion scheme, which is likely to have a restricting effect upon business. in addition, support from New Zealand, although still strong, has contracted considerably since the week immediately following the election, and consequently the general tone has been quieter. " ~ , - Trading -in toanlcs saw newlowlevels

EXPORT VALUE DECLINES FIGURES FOR SEPTEMBER ADVERSE .BALANCE FOR MONTH HIGHER New Zealand overseas trade in September resulted in a smaller value of exports than in September a year ago, the decrease being £718.000. At the same time imports fell by £582,000, leaving an enlargement of the adverse balance of £136,000. For the nine months of the current year to the end of September, exports and imports both dropped compared with the figures for the corresponding period of 1937. The contraction in export values was greater than the corresponding movement in exports, with the result that the excess of exports dropped from £13,302,000 a year ago to £6,493,000 in the current period. The details, says a Press Association message from Wellington, are: — Excess of

The value of specie not included in the above returns for September, 1938, was: Exports nil, imports £436. For the nine-monthly period, 1938: Exports £750, imports £27,552.

for the year established in New Zealands and Nationals of New Zealand. New Zealands fell 3d on fairly active trading, to close at their weakest point at 40s 6d, while Nationals of New Zealand, after dropping below par at midweek, recovered again, and closed at 50s. Dealing in other banking issues was negligible, although interest has increased in New South Wales, in view of the approach of the balance-sheet. Insurance issues recovered some ground following the set-back of the previous week, but classified industxial shares contributed practically nothing to the week's dealing. Breweries were notable for a-rise in Dominions, which, after a period of wide quotations, were eventually dealt in up to 365, a rise of 3s 6d. The preference issue was much firmer, with a market around 395. New Zealands were steady.

Dealing was substantial in Australian Glass and Broken Hills. Australian Glass advanced again on the crest of another wave of rumour of an impending bonus issue. Colonial Sugars, with a dividend announcement due. were also strong.

DUNEDIN fTHE PRESS Special Service.! DUNEDIN, November 4. The week has been one of great activity on the Dunedin Stock Exchange. It has been a most encouraging opening for the new month, and the interest shown at each of the daily call-overs was sufficient to indicate that there is a fair amount of money available for investment. One of the features of the market was the swing to local body debentures, which have not been in such demand for a very long, time. Long-dated 4{ per cent, investments were in strong demand, and there was equally good inquiry for most issues of Government stocks. The total number of recorded transfers, 88, was almost treble the number for last week, and, allowing for transactions not reported, the volume of business put through must be.almost the greatest for 1938. Bank of New Zealands fell to £2, but within a few days they firmed again. .. . ~ There were very few sections oi tne market which did not. contribute ; the week's turnover, but once again Commonwealth scrip figured prominently in the sales list. Call-room trading was infinitely brighter, and some quick dealings took place in Australian mining ventures. Two movements in Dominion shares which were noticeable were a sudden rise in Bruce Woollens (ordinary), caused by speculative interest, and a fall in Westport Coals, following the interim dividend announcement. It was evident that shareholders were anticipating a further distribution from the reserves .of the company, and when this did not eventuate, the scrip lost ground. Not for many weeks has there been so much activity in stock andl bondsBank of New Zealands fell from £2 Os 9d to £2. and rose again to £2 Os 6d. Nationals of New Zealand had only one transaction—at £2 10s Union Banks were slightly easier with business at £8 14s 9d, and Commercials Ote paid) were also fractionally easier Bank of Australasia had one sale at £lO 7s.

Turnover day by .day was :—-■ . This week. Last week. • £••>. £ Saturday .. 2,431 2,724 Monday .. 2,717 — Tuesday ... 2.136 4.967, Wednesday; -.- *-*,67S 4,282 Thursday .. 3,187 5,162 '' Friday .. 3,767 2,455 Dealings in 1 the 0,910 iD.JJU different sections *rere: — Values. £ .. Government .. 2,800 V 2,841 Debentures 100 101 Banks .. 1,202 : 2,749 Insurance .. "" 100 - 77 , Loan and agency 120 298 Frozen meat 350 298 Breweries .. 450 917 Miscellaneous , .. 6,230 9,671 Mining .. 4,250 2,061

UNLISTED STOCK Sales on 'Change 200 Comm. Bank of Aust. (2) 0 16 10 100 Natl. Ins. 100 Goldsbrough, Mort 150 G. J. Coles (2) 500 I.C.I. (Aust. and N.Z. pref.) (2) (3) 0 15 9 18 0 3 19 6 1 2 11 13 0 200 Taranaki Oilfields .. 200 Mount Lvell (2) 100 Mount Morgan 0 13 3 19 2 0 9 11 ; Sales Reported £1500 N.Z. Govt. 4 p.c. Ins., -'-'•■ 1949 (2) 100 Natl. Bank of N.Z. .. 99 0 2 10 0 2 UNILSTED STOCK Sale on 'Change v 100 Ballins Breweries .. 0 10 S

Exports. Imports. Imports. 1938 .. 3,184,000 4,821,000 1.637,000 1937 .. 3,902,000 5,403,000 1,501,000 1936 .. 3,980,000 4,447,000 467,000 Nine Months to September Exfcess of Exports. Imports. Exports. 1938 .. 48,097,000 41,604,000 6,493,000 1937 .. 55,284,000 41,982,000 13,302,000 1936 .. 46,042,000 31,885,000 14,157,000