STOCKS AND SHARES

Evening Post, Volume CXXIII, Issue 1, 2 January 1937, Page 14

STOCKS AND SHARES

AUSTRALIAN REVIEW

MARKET CLOSED FIRM "Seldom has the market closed a year on such a firm note as it did yesterday," comments the Melbourne "Argus" in its review of the operations of the Australian Stock Exchange in 1936. "The buoyancy displayed speaks volumes," continues the article, "for the consensus of opinion among investors and speculators regarding the prospects of the market in the coming year. Certainly the attentio.i paid to Broken Hill mining shares because of the high level of metal .prices has imparted a boom-like atmosphere to the market, but the confident support accorded investment stocks generally must not be overlooked.

"In the investment share section on closing day there were (in Melbourne) 31 rises and only six small falls. Thus did investors show their faith in higher-company profits and dividends for next year. They base their calculations on increased purchasing power in the Commonwealth in conformity with the higher level of export prices." A broad survey of the market during 1936 reveals that base metal shares made most progress. Barrier stocks reached new peaks towards the end of the year, after allowing for the splitting of Broken Hill South and North Broken Hill shares. Due to the rise in lead prices, the shares recorded a phenomenal advance. The trend of the market is shown in the following comparison:— Beginning, June 'JO, >'«v. -'SO, 1936. ISaB. IU3O. £ j. <1. £ s. (J. £ >. d. I Hanks .... 60 1 C 62 16 61 4 9 Pastoral .. fi 2 :» 5 111 M « 1". 9 j Shipping . 917 1 9IT 3 10 3 3 Insurance 16 16 0 IB 7 9 10 16 1 Gas and electric 11 1 0 10 12 0 10 7 b Breweries & hotels 0 5 9 817 6 9 » 0 Retail _. , „ ~ „ .„ houses 10 3 9 11 -1 3 11 310 ' cellancous 99 9 6 101 0j» 105 7 (I £222 16 10 £226 0 i £231 2_J The miscellaneous group, which includes such leading stocks as Broken Hill Proprietary, British Tobacco, and Australian Glass, shows the greatest advance. Banks continued to malce slow headway. Pastoral shares improved on the better wool season, and, shipping issues made a moderate recovery. Gas and electric issues dropped back, while insurances and breweries rested. Retail trade scrip shared in the up-swing. UNIT TRUSTS. The market continues to be supplied with new capital issues for industrial enterprises. A recent development has been the growth of the unit trust movement in Australia. The boom conditions of recent years were 1 absent from the market for gola shares. The weeding-out of the weak producers has left many investors with an aversion for gold shares. In recent months the Sydney tin market has staged a strong revival, all tin issues receiving better support. NEW ZEALAND INTERESTS. "In the last twelve months," says the "Argus," "much capital has come to Australia from New Zealand for the purchase of Australian securities. Because of the comparative dearth of attractive avenues for investment in the Dominion there tends always to be a steady flow of capital to the Commonwealth. But there is reason to believe that the volume of money has been much greater in the last twelve months. ~ .., • "It is a striking fact that while m Australia in the last twelve months the market values of stocks have increased by many millions, in the same period they have shown in New Zealand an appreciable decline. Twenty representative New Zealand banking, insurance, frozen meat, gas, coal, timber, flourmilling. cement, drug, and drapery stocks, with an aggregate ordinary share capital of more than £12,000,000. show a fall in share values in a year of nearly £3,000.000."