INVESTMENT MARKET

Dominion, Volume 29, Issue 72, 18 December 1935, Page 14

INVESTMENT MARKET

Problem of Exchange By Telegraph—Press Association. Dunedin, December 17. At the annual meeting of the Dunedin Stock Exchange to-day, . the chairman, Mr. Harman Keeves said the exchange question was one that would require very careful consideration. It was an easy matter to raise the rate, but it was quite a different matter to effect a reducion. So far as world conditions were concerned, the stabilisation of currencies seemed no nearer than it was 12 months ago. While . some important nations stayed on the gold standard, some were hovering on the brink of inflation, so that it was too much to expect that all important countries could agree upon stabilisation at the same time, and it must be a very long time before this could be brought about. During the year money had remained plentiful and cheap in the local market', with the result that sound investment shares, such as banks, insurance, finance and many industrial issues, were in good demand and reached high levels. The most important company flotation during the year was that of the issue by the Mortgage Corporation of New Zealand of £500,000 cumulative 4J per cent, shares at par to the public. The issue was largely over-eubscribed rind the shares went to a substantial premium but had since fallen in value. The issue by the corporation of £500,000 in bonds bearing interest at 3 3-8 per cent, was not, however, received with such favour, although the chairman of the corporation stated that the issue had also been largely over-subscribed. Cheap money in the Dominion had helped to stimulate industry and primary production and it was to be hoped that the new Government would use its influence in keeping interest rates down as had been done in England and by the late Government of this country. The outlook for the coming year was good. Fairly high prices for all. the country’s products were being obtained, so that-there should he a large sum of money seeking investment during the course of the year. Much of this would, as usual, find its way to members of the Stock Exchange for investment, so that it behoved them to see that their clients made purchases of only the best and soundest of securities. It was to be regretted that, owing to the lack of sound securities in this coun try, large sums, had been invested during the year in the shares of Australian companies, the purchase of which had in most cases been profitable. He thought he could safely say that there were so many opportunities for safe investmehi in Australia that investors would continue to make purchases of shares of selected companies in that country. Owing to the high rate of exchange, th<amount invested in British securities in recent years had been practically nil The following office bearers were elected for the ensuing year: Chairman, Mr. Harman Reeves: executive committee. Messrs. E. R. Smith. IT. K. Poppelwell. J. 11. Walker, W. 11. McLeod and C. Penman; trustees. Messrs. Reeves Smith and W. J. Watson; auditor. Mr J. W. Smeaton. Butter Quiet; Cheese Firm Joseph Nathan and Company, Lid., have received from their principals. Trengrouse and Nathan, Ltd.. London, the following cabled advice, dated December 16:—New Zealand butter. 87/- to SS/-: market quiet. New Zealand cheese: White, 53/- to 54/-; coloured 57/- to 58/-; market, firm. Overseas Wheat Markets By Telegraph.—Press Assn.—Copyright New York. December 16. Chicago wheat. December delivery 100} cents a bushel: May. D7A cents: July, cents; New York, cash 12!) 3-S cents. London. December 16. Wheat cargoes opened quiet at lower levels. Parcels had fair support al steady rates. Futures: London, February-April. 27/.". per quarter. Liverpool. December, 6/3 i.-Bd. per cenlal; March. 6/1 5-Sd.: Mttv 6/1 7-Sd. Bradford Tops Market Quiet By Telegraph. —Press Assn.—Copyright London, December 16. The Bradford tops market is quiet, but consumption is well maintained.