INVESTMENT MARKET

Evening Post, Volume CX, Issue 86, 8 October 1930, Page 14

INVESTMENT MARKET

SECURITIES FIRMER IMPROVEMENT IN SYDNEY SYDNEY1, 7th October. Shave and bond values advanced sharply again to-day. Leading securities are dis--1 tinctly firmer, while sellers arc more , restrained than usual. Commonwealth bonds are moving up steadily as a result of the much-improved demand. POSITION IN NEW ZEALAND. There have been slight advances during the week in Bank of New Zealand shares, in Goldsbrough llorts, New Zealand Bvewereis, Tooth's Breweries, British Tobaccos, and an almost sensational recovery in the values of the shares of the Commercial Bank of Australia. At the end of last week these shares were down to 15s, and had been sold at as low as 14s 7d. Yesterday sales in Christchurch wevc-notified at from ISs 4d to 19s sd. There were buyers in Wellington yesterday at 17s 6d, and to-day 18s was offered in Wellington, sellers 19s 9d. In both the Melbourne and Sydney investment markets an improved tone was discernible at the end of last week, and buyers were showing greater interest in the markets. A leading Sydney slock and share broking house,, writing 29th September, informed' tlieir New Zealand clients that under the pressure of sellers, many of whom had been forced to realise to reduce overdrafts and to provide for other commitments, the price of all classes of shares steadily .gave way, and current quotations were lower than had been seen since the downward trend became evident. In quite a number of cases price declines had been quite out of proportion to the recession that .appeared to be warvantedby the lower earning power or the potential value of shares in particular companies. In view of the general position, however, there was not much encouragement to buy shares even of the best type, for there was then no prospect that economic affairs had taken a definite turn toward improvement. "Such a ' turn may take place before long, .but till it does occur we think it wiser to resist the temptation to make share'purchases on.no better grounds than j that they are now much cheaper than the prices we have been accustomed to during the past few years. It is true that in restrospeet to-duy's prices may prove to, be at bottom and that delay in buying may result in less favourable purchases than are now availaljle. On the other hand, there is no justification for assummg that prices will- not ease further _or for believing that when a definite improvement takes place that its progress will be rapid. Taking everything into consideration, thfire appears to be no hurry to buy."