N.Z. INVESTMENT MARKETS

Press, Volume LXXXIV, Issue 25678, 15 December 1948, Page 6

N.Z. INVESTMENT MARKETS

FACTORS BEHIND PRESENT DISTURBANCE WELLINGTON STOCK EXCHANGE CHAIRMAN’S OPINIONS (P.A.) WELLINGTON. December 14. “The chief factors causing a disturbance of our markets are the uneasy feeling arising from the Berlin situation, the reduction in our exchange rate on London to par, and the various restrictions imposed by the Government.” said ths retiring chairman (Mr A. Hamilton) in his address to the Wellington Stock Exchange annual meeting to-day. “The prices k>f shares dealt in on the London market are now settling down here on a parity with London prices, an shareholders are realising there is no chance of prices coming back to those ruling before the alteration in the exchange rate. This was not so, however, in the case of Australian shares, and prices with us have not adjusted themselves as would be expected in accordance with currency values of our two countries because of the opinion of many that Australia will have to fall in line and remove her 25 per cent, premium. Should that occur, Australian shares will again be on the same level in both countries. For the period following the alteration of the exchange rate, a heavy strain was put on our local markets through the natural selling over here by Australian holders of our Government stock and New Zealand shares. Australian holders quickly realised that such sales here brought them a premium of 24 per cent when having their funds remitted to them from this side. The result was heavy selling of Government stock and shares in several of our prominent companies. The stock market stood the strain remarkably well, but some serious falls occurred. However, once this strenuous period was over, most prices recovered.” Mr Hamilton added that during the year there was a good demand in practically group with firm trading in Government stocks and a heavy turnover of bbnk shares in sales to London. The London business was due mainly to the caution of many who felt that the Australian Government might succeed in taking over the trading banks and to the feeling of others that it was wise to sell while the high exchange premium on London remained. The judgment of those who sold for this reason had been vindicated.

Henry Jones.— Henry Jones Co-opera-tive, Ltd., Melbourne, and its subsidiaries, earned a record profit of £328,868 for the year to October 31, against £312 431 in 1946-4 T. Dividend is maintained at 10 per cent. (£8 0s 7d per cent. New Zealand currency), requiring £150,000, leaving £10,242 to be transferred to general reserve. The directors state that they will consider a new issue of shares.

J. C. Williamson, Ltd.—J. C. Williamson. Ltd., Sydney, earned a net profit of £38,055 for the year ended June 30, an increase of £4035 on the year and the best result for 19 years. While gross profits Improved by only £613 to £77,674, expenses, including taxation, were reduced by £3422 to £39,619. Dividends remain at 6 per cent., ordinary requiring £22,500 and preference £10.200. The payments are equivalent to £4 16s 4d per cent, in New Zealand currency. Seven subsidiaries made an aggregate profit of £8343, contrasting with a loss of £11,073 the previous year ■