STOCKS AND SHARES

Evening Post, Volume CXVII, Issue 110, 11 May 1934, Page 10

STOCKS AND SHARES

GOVERNMENT LOANS HIGH

INVESTMENT AND INTEREST

'"Evening Post," May 11,

Judged by current interest rates, money is cheap in New Zealand today, but seemingly it is expected to be even cheaper. This, is shown by the eagerness pf. investors ' to pay anything irom : 4 to 6 per cent, and over above par for 3^ per cent. and 4 per cent. (Government loans. Bank shares are also in strong demand notwithstanding their low, return when bought at present prices. There is every prospect too of low rates of interest ruling for some time to come. No doubt borrowers will regard this tendency of the money market with satisfaction, but there is another aspect of it on which attention at the moment is not being directed, and that is the diversion of capital from mortgages, industries, and other developmental purposes with low intevestearning channels. When money is in demand its price is, naturally, regarded by borrowers as high, even prohibitive; but, as was brought out before the Monetary Commission, the years of New Zealand's greatest prosperity were the 1920's when the bank overdraft minimum rate was from Cto 7 per cent. It has now been at 5 per cent, for over a year, but this lower rate has not yet been followed by the improvement in industry and commerce and, above all, employment of labour, thut cheaper money is popularly supposed to bring in its train. .'. I Keverting to the great demand today! lor gilt-edged investments it is- a question whether the great Government local loan conversion scheme would not have been even more successful today than last | year. 1 A' comparison of highest-*, prices paid for 3Vs per cent, and 4 per cent, stocks in" May, 1933, and during the past week shows how .low the price of money is today. -: : May, 1033. May, 1031. ;■ Stock. ■ ■ £ s. d. ■" ; .'£ s. d. 3!,5p.t., 1938-43-.. 09 15 0 104 0 0 3% p.c.,. 1938-5:2 ..300 0 0 ' 104 17 G 3% p.c.-, 1939-43 .. s)9 15 0 ■ 103 ]?■ 6 4 p.c., 1940-....;. 100 7 6 104 17 6 4 p.c., 1946 .■...;. 100 10 0 105 0 0 4 p.c., 1949. . 100 15 0 . 105 12 6 4'p.c., 1955 .....'.: lpO 10 0- 107' oid •Bond sales were recorded this week," 4' pic.. (1940), £105 ss; (19461, £105; (1948);----£105 ss; (1955),; £108 15s. ■ v ' :.' ' The business reported in ' Government stocks and bonds this week has been as follows; — .' ■ ■"■']' 3>/4 per" cent, stock (1039-43), £103 17*! Gd; 3V& per cent, stock (1938-52), £1,04 17s 6d; 4 per cent, stock (1940), ; £lo4 10s, £104 17s 6d; and bonds, £105 ss; ■" 4. per cent, stock (1946), £104 ss, £105, £105 15s, £104 10s; and bonds, £105; . 4 per cent, stock (1949), £104 lO.s, £105, £105i2s Gd, £104 10s: and bonds, £10.3 j ss;'4 per cent, stock (1955), £107,\£]QGf : 15s, £107; and bonds, £105 ss. £106, £10C 15s. ' ... ■ 'I Local, body and similar debenture's are I "also in; gOod demand, especially for city .loans -which are firmly held. Certain company debentures, too, are attracting much more attention today than they did a year' ago and among those iv demand are 6% per cent. Wellington Gas (1941) at £101: S per cent. Wellington . Kacing Club .(1935)' are wanted ,at ' £100, compared with £92 a year ago.- Others >in request this week include V/a per cent. Gisborne Gas at £80,- 6V2 per cent. Bootli | Macdonald (1937) at £00, sellers-asking £70; && per cent. New Zealand Refrigerating (1935) at £100; GVa per -cent. Glaxos (1945), at £90; and 5 per cent. Wright," Stephenson (perpetual) at £SS. .Sales of local body and company debentures this week were reported as follows:— 6 per cent. Makerua Drainage (194G), . £101 10s; 4M, per cent. Christchmch City (1955), £103 ss; G per cent. Mount- : Albert (1959), £102 lbs; s%,per Veiit. f Auckland City (1957)-, £105 ]0s;"4%! l>cr- cent. New Zealand Farmers' Co-op, j (1941), £76 10s, £76 15s; (1943), £7G 15s; and (1940), £70 15s. £76 10s: 6>,£ per cent. Gisborne Sheepfanners (1941). £91 10s; IVz per cent. Amalgamated Brick, Wellington (1944), £89 10s. BANKS, INSURANCE, FINANCE. Bank shares keep firm, with appreciations this week in those of the Bank of New Zealand. Business has been on but a moderate scale. Australasias can be bought at £12 10s. Commercial of Australia preference were wanted at £9 10s, holders quoting £9 JSs. Sales of bank .shares were notified as follows:— Bank of New Zealand (cum div.), 50s % Cs, 50s 9d, 51s, 51s 3d, 51s 6d, 525, SisId, and D. Long Term (cum div.) .R4s, 4d; English, Scottish, and Australian: Bank, £5 8s; National Bank of Australasia (£5) (cum div.), £6 8s 6d, £6 7s, and (£10) £13 4s; Bank of New South Wales (cum' div.),;' £33:2s 6d, -£33 ss, £33; Commercial Bank :of;. Australia, 16s lid, 165.1 M;-.•Commercia- Banking Co. of Sydney, £18;. National Bank of New Zealand," 80s;-Union Bank, £10 Is, £10, .£.lO Is,. £10 ,0s Jd, .£10,,. ' Insurance shares are very strongly held. Inquiries for Australian Provincials '■'-■ at 10s 3d 'met" with'response at 10s 8d to 10s■ 93..('Sales of .other insurance shares were as follp\ys:— /National Insurance (cum div.), 20s; New Zealand', 59s 6d, 60s? 60s 9d,""'6os 3d J.Queensland, 695; South British, 78s 3d, 78s, 78s 3d, 795; Standard, 61s, 61s 6d, 61s 3d, 61s 6d. " Financial and stock and station companies' shares were in moderate demand. Wellington Trust and Loans had buyers at 955, but had no sellers; Equitable Buildings were wanted at 355, but met with no response from holders. New Zealand Loan and Mercantile ordinary were inquired for at £50 to £54, sellers quoting £60; Abraham and Williams (ord. and pref.) were in request at 48s and 78s to 80s respectively, Sellers of the ordinary were willing to accept 60s. Dalgetys were wanted at £10 Is, sellers asking £10 10s. Sales in this section were reported as follows:— ■ Farmers' Auctioneering (B pref.), 20s; Goldsbrough Mort, 33s 9d, 33s 6d, 33s Sd, ' 33s 74, 33s 4d; New Zealand Guarantee Corporation, 4s 28, 4s 3d, 4s 2d; New' Zealand Loan and Mercantile, £54, £57. COAL, GAS, AND OTHER. Coalmine shares keep their place in1 the picture with inquiries for Stocktons (ord.) at Is lid and (pref.) .at 35.: Grey Valleys had buyers at 7s 9d;^Kaitangatas were wanted at 20s 6d; and Benowns (ord.) at Is 6d. Sales of coal,' gas, and other shares will be found set out hereunder. ; Gas shares keep steady with buyers of Gisbornes at 7s 3d; Timarus at 20s, and Christcliurch (10s paid) at. 14s Gd. Meat company shares wanted were Wellington Meat Export (ord.) at 5s Gd, Canterburys (ord.) at £9 ss, and North C'ahterburys at lls. ; ; Brewery shares in demand included Carltonsnt 44s to 455; Dunedin (ex div.) at 255; Timaru (7s Gd paid) at 4s 3d; and Dominions at 6s 9d. Shipping shares appear to be under a cloud, except Unions (pref.), which were wanted it 255, to 25s'9d. /Huddart, Parkers (ord.) were .wanted at 32s and (pref.) 255. P. and 0. Deferreds liad buyers at 20s and sellers at 235. Woollens were strongly held with unsatisfied buyers of Mosgiels at £9 15s and Wellingtons at £5 ss. Timbers' were exceedingly quiet. " ' : Sales in the sections above mentioned were reported as follows:— Coal.—Pukemiro, 245, 24s 3d, -24s Gd Taupiri, 16s; Westport, 15s 3d, 15s 2d' 15s 3d, 15s 4d. " Gas.—Auckland, 259 4d, 25s sd, 25s Cd,

25s 7d, 25s 6d, and (contrib.) ISs 3dChristehureh, 29s 9d; Wellington 37s 6d, 37s od, 375-6 d. ;

' Freezing Companies.—Gear Meat '7s Od, 295, 29s 2d, 295; New Zealand Refrigerating (10s), Bs. 8s id, Ss 6d, 8s 7d Ss Bd, Ss 9d, 8s o%d; Southland- Meat (pd.), 655. .

Breweries.—New Zealand Breweries 41s 7d, 41s Bd, 41s pd, 41s lOd, 425, 42s 3d; Staples, 28s; Tooth and' Co., 44s 9d 44s 4d;'Toohey's, 29s 9d., Shipping.—Devonport Ferry, 21s 6dHoward Smith, 14s Id;' Northern Steam, 6s. ■ ' • ■ '. •.■■'- Woollen.—Bruce Woollen (pref.), 21s. i MISCELLANEOUS. Business in the. miscellaneous section was reported as follows:— Anthony Horderri, 16s Id, 18s 4d; Associated News, 255. j Beath and Co. (Is), 8s; British Tobacco, 37s 3d; By croft, 4Gs. Colonial Sugar, £64 10s, £64 l's 6d £64 7s 6d, £64; 10s. Dominion Rubber, 24s 3d, 255, 25s 6d • Dunlop-Perdriau Rubber, ISs 9d, 18s 8d 18s lOd, 18s.8d, 18s 3d, 18s 10d, ISs Od' 18s 6d. Electrolytic Zinc (ord.), 26s 6d. Farmers' Fertiliser, 18s. ' - Henry Jones Co-op., 325. Milburn Lime and Cement, 32sMount Lyell, 23s Bd, 23s 6d, 23s sd. New 'Zealand Drug (cum div.), 74s 9d, 76s- Gd; New Zealand Newspapers 29s 6d; New Zealand Malay Rubber 21s Prestige, N.Z. (met), 19s. . Union Oil and Soap, 27s 3d. Wilson's Cement (cum div.%,. 27s 3d 27s Od; Woolwoi-iiis, Sydney ' (10 per cent, pref.), Ujs Dd.

Unlisted.—Tnvest. Exec'., Trust ("'ml B debs.), £96; Northern Co-op. Invest. Trust, 5s 3d: Xew Zealand Woolpack.- 17s Gd and (10s pd.l. Ss 9d: ''.Sun'|_ Newspapers, 4s 2d; Silknit, 20s •v;l; (Sydney), £5 15s.