COMMERCIAL

Press, Volume LXXXIII, Issue 25307, 6 October 1947, Page 8

COMMERCIAL

STOCK EXCHANGE WEEK REVIEW OF INVESTMENT TRENDS Prices were generally well maintained on the Christchurch Stock Exchange last week.. Conditions on the Australian exchanges appeared to be buoyant, and tne large increase in the Electrolytic Zinc dividend, combined with the excellent wool prices, appears to have given investors there additional confidence. The week’s turnover of 12,750 shares was 5387 up on the previous week. The biggest gains over the week in point of turnover were registered by the frozen meat and miscellaneous sections. Details of dealings, with the previous week’s totals in parenthesis, are: Government stock, £825 (£1980); banks, £BOO (nil); breweries, 468 (341); coal, 350 (425); gas, 300 (nil); insurance, nil (200); loan and agency. 300 ( 210); shipping, nil (200); woollens, 31 (717); miscellaneous, 4388 (2150); mines, 925 (200); unlisted stock, 1400 (1700). . _ , There was a very light turnover in Government stock, but there were firm buyers for practically all issues. Commercial Bank ordinary shares were traded at 21s lOd in the banking section, but apart from this transaction the banking section was dead. In the breweries section New Zealand Breweries changed hands at 55s and 55s 3d in light business, and the market appeared firmer at the close of the week with buyers at the higher figure, sellers 55s 6d. Taupiri coal continued to advance, a sale being recorded at the beginning of the week at 86s 6d, the market closing with buyers offering 87s and sellers, holding out for 90s. Business was recorded in the north in this stock at 88s. The dividend return at this figure is a shade over 21 per cent., but purchases at the present time are in expectation of the State’s acquiring the company at a handsome figure. The other transaction in the coal section was a sale of Kaitangata shares at 36s—a rise of 2s 9d on last local business. A large turnover in the contributing shares of New Zealand Refrigerating was the main feature of the frozen meat section. The price of this stocjc remained unaltered throughout the week at 17s lOd, and more were wanted at this figure at the closing on the last day. The remaining stocks in this, section were firm to better. Auckland Gas Company’s shares had their first local business for some time when they changed hands at 7s 6d. Christchurch fully-paids had one sale during the Week at 265. The insurance was a quiet section. Sellers reduced their limits for all issues, but buyers were not attracted.

Loan and Agency Interest revived in the loan and agency section in the preference shares of New Zealand Farmers’ Co-operative, and both A and B shares scored a rise. The company’s ordinary shares appeared easier, and closing quotations were buyers Us, sellers Ils sd. Dalgetys again had business at £lO ss. Although no dealings took place in Goldsbrough. Mort shares, quotations were appreciably firmer, following the improvement in the Australian market, where sales were recorded as high as 34s 3d. New Zealand Guarantee Corporation found buyers at 5s 9d, cum div. and distribution from the general reserve. The dividend on this company’s 3s shares is 2d. and the distribution 6d a share. Only one sale was noted in the woollens section, when Wellington Woollens preference shares sold at £lO ss. All the other woollen shares, with the exception of Timaru, appeared fractionally weaker. The shipping section was practically bare of quotations throughout the week. The miscellaneous section was responsible for a good turnover. Chief interest centred in- Broken Hill Proprietary and ’Woolworths. The former sold as high as 51s 3d, but closed at 51s, with sellers and -sales at that figure. Woolworths, Ltd., were traded at 23s Id and 235, and more were on offer at the lower figure at the close of the week. The sharpest move in the section was in Selfridges, which sold at 50s, representing a rise of 4s on the 4ast sale figure less than a fortnight ago Electrolytic Zinc Company announced its final dividend during the week on both' classes of shares, and at 17J per cent, it represents an improvement of 6J per cent, on last year. However, no business was recorded locally, although quotations followed the Australian market, where sales of both issues took place in the vicinity of 73s 3d. Morts Dock confirmed stronger buying inquiry when they sold at 275. Mason, Struthers 10s paids and Zealandia Soap shares both improved 3d to sell at 12s and 16s 3d. United Provisions had business at 20s 9d. cum dividend. The total dividend for this company during the year was 7 per cent. On an ex-dividend basis, the return on these shares is 7 ptr cent. A sale was reported of Hadfields at 12s 9d, but on the an-

nouncement that a dividend would b’e paid, buyers moved up sharply to 17s. Wilcox, Mofflin rights were traded for the first time, and were sold at 6s. The market was better at the close, with buyers at 6s Id. Small business was recorded in both ordinary and preference shares of Macduffs, Ltd., with practically no variation. Wool worths Holdings came on the sales list for the first time recently to sell at 425. There was little interest in the Australian mining section. Broken Hill South made a good improvement on the Australian market to sell at 40s 3d. and Mount Morgans appeared easier with sellers at 9s 6d. Sellers of Mount Lyells also reduced their limits. In the New Zealand mining section Grey Rivers had business at Ils, . and more were on offer at that figure. A fair turnover was recorded in the unlisted section. There was a sale of E. Reece, Ltd.’s, ordinary Is fully-paid shares at Is 3d. A sale of Avon Metals took

place at 265, showing an advance of Is on last local business. REPAYMENT OF N.Z. LOANS BRITISH COMMENT The London sharemarket is still in no state to welcome a resumption of trustee borrowing, says “The Times.” “No surprise, accordingly." it continues, “is likely to be shown at the decision of the New ’ Zealand Government to pay off its 4} per cent. loan, due on November I —of which some £11.200.000 is outstanding—in cash without making an offer of Conversion. The repayment will naturally involve a substantial draft on New Zealand's sterling resources, but the Dominion Government may well have considered that these are likely to be increased anyhow during the next year or so with the enforced redirection of United Kingdom trade Empire-wards. Over the last 18 months in any case they have risen by about 20 per cent. The June figure of the sterling resources of the Reserve Bank was £92,600.000 and the net oversea assets of the trading banks at the same date stood at £12.500,000. The next substantial New Zealand Government maturity is the £13,000,000 of 4J per cent, bonds 1948-58, which will be optionally callable on three months’ notice on March 1, 1948.”

SMITH AND SMITH, LTD.

ORDINARY CAPITAL RAISED (P.A.) WELLINGTON. Oct. 3. A gross profit of £210,867, compared with £194,591 the previous year, is shown in the forty-fourth annual accounts of Smith and Smith. Ltd., Wellington, for the year ended June 30, 1947. The rate of the gross profit is lower than for 1946, but is more than compensated for by a large increase in sales, the directors state. After providing for all expenses, including depreciation, rates, land tax. and income and social security taxes (these taxes amounting to nearly £50,000, compared w'ith £33,070 the previous year) ' and directors’ fees, and subsidising the 1 staff superannuation and welfare fund by £6648 (£6128 last year), there remains £35,597 (£20.656), which, with the dividend of £2083 (£8375) received, and the amount brought in, makes available £42,741 (£34,811). It is proposed to pro- ; vide £6366 (£2250) for preference dividends payable during 1947-48 and £15,050 (£10.500) for an. ordinary dividend of 7J per cent. (10 per cent.), and to transfer £14,747 (£17.000) to the reserve account. 1 leaving £6578 (£5061) to be carried for-| ward.

The directors report that to consolidate for future expansion and development,' ordinary capital was raised to £255.000 by the creation of 10.500 ordinary shares of £lO each. In addition, an increase of 95.000 "B” 4 per cent, preference shares was authorised, these to rank pari passu with original preference shares as to dividend and capital-, but to be redeemable at 21s after June 30. 1952. at the company’s option. More of these shares than were available were sought.

LONDON MINING QUOTATIONS (N.Z Press Association—Copyright! LONDON, Sept. 2 Latest mining quotations are:—Broken Hill North, 63s 9d; Zinc Corporation. £5 7s 6d; Electrolytic Zinc. 555; New Broken Hill. 36s 6d. LONDON SECURITIES (N2 Press Association—Copyright) LONDON, Sept. 2. Government Consolidated Stock. £B4 2s 6d; Funding Loan, £lll 6s 9d; War Loan. £lO3 ss; Conversion Loan, £lO4 18s 9d: Victory Bonds, £ll2 17s 6d; New Zealand . £lOl 5«, £lOl 6s 9d.

NATIONALISATION OF TRADING BANKS

COMMENT BY “THE TIMES” (N.Z. Press Association —Copyright) LONDON, October 3. The opinion that cash rather than bonds will be required by British shareholders of trading banks should they be nationalised by the Australian Government, is expressed by “The Times ’ in a recent article. “It is always a pity,” says “The Times "when politics intrude into economic matters, and the question of the nationalisation of the Australian trading banks is no exception. Ostensibly, the Commonwealth Government already has ample controlling powers over the independent banks in the shape of the Banking Act of 1945. Full details have now reached this country of Mr Chifley's statement in announcing the Labour caucus's decision and of the counter-statement by the chairman of the associated banks, from which it is clear both that the Australian Labour Party fully intends to go ahead with its project, and that the banks intend to fight for their independent lives. Meanwhile, it may be observed that Mr Chifley is reported to have said that, because of the huge physical task involved, the private trading banks -would not be taken over in entirety for several years, and that for the time being the Government proposed to retain the present directors of the private banks. •

SUPPLIES OF PIG IRON CLEARANCE THROUGH AUTRALIAN PORT The Canterbury Manufacturers’ Association has received advice from the New Zealand Manufacturers’ Federation that the future policy of the Broken Hill Proprietary will be to handle all pig iron for New Zealand through the port of Why* alia, near Adelaide. The Minister of Industries and Commerce (Mr A. H. Nordmeyer) recently advised the Shipping* Controller of the< policy of the Broken Hill Proprietary, and passed the information on to the Manufacturers’ Federation. The Union Steam Ship Company has been requested by Mr Nordmeyi*r to make a vessel, or vessels, available to make regular clearances from Whyalla. MINING Kanierl-Arahura.—The two dredging units of Gold Mmes of New Zealand, Ltd., during the mofith of September won a total of 2110 ounces of eold. Arahura won 14320 z of gold from 301,000 yards in 531 hours, and Kanieri dredge secured 6780 z from 220.000 yards in 482 hours. Rimu Gold Dredging Company. Ltd.—. The return for the clean-up period from September 18 to September 30 was 218Joz from 89.165 yards in 236 J hours. Slab Hut.—Slab Hut dredge return for the week ended September 26. was 20 ounces in 93 hours. AUSTRALIA'S DOLLAR SHORTAGE Australia had a net deficit of £31.600.000 in her balance of payments with the United States and Canada for last year ended June, without allowing for the offset of a considerable inflow of North American capital. This was given as “the best available estimate” by the Treasurer (Mr Chifley).