OUTLOOK FOR WOOL

Press, Volume XCVIII, Issue 29002, 17 September 1959, Page 21

OUTLOOK FOR WOOL

Prospects Appear Encouraging

Prospects for the coming season are regarded with reasonable optimism, says the Bank of New South Wales in its latest quarterly review. The continued economic recovery in consuming countries and such evidence as is available of raw wool stocks and consumption suggest that demand should be fairly strong. “It is unlikely and undesirable that prices will return to the exceptional values of 1957 in view of the growth of manufacturing potential for synthetics.’’ the review says. "Prices close to those ruling at the concluding sales last season, which would give an average price of around 40d per lb. would be regarded by most growers as adequate. "The average price of wool sold at auction in New Zealand during the 1958-59 season was 36d per lb, 12.4 per cent, lower than in the previous season. The effect of the price fall was to some extent mitigated by an exceptionally large increase of 6.9 per cent, in production. The total value of the clip was estimated at £79.5m. compared with £85.1m in 195758.” Wool Commission’s Role In the conditions of weak demand in the first part of the 195859 season the Wool Commission period. During the season it affirmation of its floor price at the early sales lent an element of strength in a highly uncertain period. During the season it bought in about 46.000 bales and during the stronger phase of the market disposed of an equivalent amount.

The commission’s actions have been widely commended and it is generally believed in New Zealand that it prevented prices falling even lower than they did in the earlier part of the season. Its later disposals may also have moderated the extent of the subsequent price rise and thereby avoided encouraging substitution of synthetics. With its capital fund of £3l m still largely intact the commission can exercise an apprecia ; *- influence in an unduly depressed market, but it is doubtful if it could stand against a prolonged adverse trend of prices. The commission has announced that it will maintain its policy of buying in wool when bids fail to reach its limits, which for the coming season will continue to be based on an average price of 33d per lb. the review says.

ROTOITI TIMBER

Greatly Reduced Net Profit (New Zealand Press Association) WELLINGTON. September 16. Consolidated net profit of the Rotoiti Timber Company. Ltd., and its subsidiary for the year to June 30 was £477, compared with £3766 in the previous year. Two years ago it was £9784. This is reached after allowing £5219 (£4582 in the previous year) for depreciation and nothing for taxation (£3316). In the previous year there was an allowance of £5867 for flood damage but there is no similar item this time. The unchanged ordinary dividend of 124 per cent, takes £5575 and the 6 2-5 per cent, preference dividend £247. The carry forward will be £7017, compared with £12,362 brought in. The directors report that early in the financial year the company’s sawmill was destroyed by fire but it was insured and a modern electrical mill has now resumed production. Insurance received exceeded the book value of the buildings and plant at the date of the fire. A capital profit has been added to the reserve account. The drop in profit in the 1957-58 year was largely attributed to a flood damaging the company's road access and putting the mill out of action.

SHAREMARKET INDICES

Takeover.— The Myer Emporium, Ltd., takeover of Allan and Stark, Ltd., the Brisbane department store and drive-in shopping centre, was completed today. In 1957-58 Allan and Stark declared a net profit of £124.480. The Myer Emporium acquired Allan and Stark in a share exchange deal worth about £4.700.000 on market values.—Brisbane, September 15.

Sharemarket indices are:— New York.—Dow Jones: Rail Indust. Shares sold. Deo 31 .. 157 65 583 65 8.970.000 Jan 29 .. 181 13 590 40 3.470.000 Feb 26 .. 162 13 602 06 3.930.000 Mar 31 .. 158 65 601 71 2.820.000 April 30 .. 16682 623 75 3.510.OOO May 29 .. 167.33 643.79 2.790.000 June 30 .. 167.62 643 60 3.200.000 July 31 .. 167 80 674 88 3.270.OOO Aug 24 .. 162.38 653.22 1.860,000 Aug 28 .. 163 49 663.06 1.930.000 Sept 1 .. 16160 655.90 2.430.000 Sept. 3 .. 158.47 645.90 2,330.000 Sept. 4 .. 158.61 652.18 2.300.000 Sept. 8 .. 156.19 642.69 2,940,000 Sept. 9 .. 155.32 637 67 3,030.000 Sept. 10 .. 154.52 633.38 2,520,000 Sept. 11 .. 156.42 637.36 2.640.000 Sept. 14 .. 154.65 633.79 2,590,000 Sept. 15 .. 154.34 630.80 2,830.000 London. —Financial Times (industrial ordinary 1935 equals 100, Government 1926 equals 100 gold. 1955 equals 100): Indus, ord. Govt. Gold Dec 31 .. 225 5 84 72 86.0 Jan 29 .. 2133 86 42 87 2 Feb 26 .. 219.8 86 85 89 3 Mai 31 .. 2194 85 84 88 1 April 30 .. 228 0 86 10 86.7 May 29 .. 240 1 84 73 94 2 June 30 .. 239 0 86 16 93 8 July 31 .. 237 0 86 30 89 5 Aug 24 .. 256 3 86.16 90.8 Aug 25 .. 254 0 85 17 90.7 Aug 26 .. 253.4 85 47 90 3 Aug 27 .. 256.0 85 29 90.8 Aug 28 .. 258.0 85.41 90.8 Sept 1 .. 259 7 85 29 90 7 Sept. 3 .. 255.8 87.74 89.9 Sept 4 .. 252.9 84.59 89.9 Sept. 7 .. 251.2 84.59 89.6 Sept 8 .. 255.2 84.72 89.4 Sept. 9 .. 256.8 84.86 89.7 Sept. 10 .. 256.5 84.12 89.8 Sept. 11 .. 255 4 84.82 90.0 Sept. 14 .. 255.2 84.48 89.8 Sept. 15 .. 254.5 86.4 89.9 Sydney. —Sydney Stock Exchange (July, 1936-June, 1939, equals 100): Banks Retail Indus. Dec 24 .. 142 94 333 29 222 99 Jan 30 .. 14360 342 62 231 01 Feb 26 .. 141 41 346.31 231 83 Mat 3> .. 141 97 345 78 231 63 April 29 .. 146.60 343 83 241 85 May 29 .. 152 86 350 55 250 56 June 30 .. 153 83 361.37 259 19 July 31 .. 162 77 371 56 277 46 Aug 31 .. 164 26 365 18 288 95 Sept 1 .. 164’6 364 67 280 8? Sept. 3 .. 164.34 364 44 289 96 Sept. 4 .. 164 26 365 71 290 16 Sept 7 .. 163 70 368.71 291.02 Sept. 8 .. 163.91 370.29 291.04 Sept. 10 .. 164 06 371.17 292 24 Sept. 11 .. 163.65 368.83 293.37 Sept. 14 .. 162.09 368.05 294.96 Sept. 15 .. 162 32 369.78 294.92