IMPROVED OUTLOOK

Evening Post, Volume CXXV, Issue 100, 30 April 1938, Page 12

IMPROVED OUTLOOK

INVESTMENT MARKET

BUSINESS OF THE WEEK

"Evening Post," April 30.

Business was a day short tnis week in consequence of the observance of Anzac Day on Monday last. The market, however, had a brighter aspect than when business closed for the Easter vacation/but so far as New Zea-1 land industrials were concerned, j the public showed no particular eagerness to do business in them. The reason for this half-heart-edness may be that prices are considered to be too high; but the investor's want of confidence in the trend of public affairs in New Zealand, especially ■as to the form future taxation may assume, cannot be left out of account in any review of the share market. Exr* ternal influences, such as the sentiment displayed in the London and New York markets and their reactions on Australia, also cannot be ignored, but the local market for New Zealand company shares continues consistently dull. On Wednesday last in Christchurch there-was not a single bid made for shares in seven New Zealand woollen and similar companies, but sellers were quoting freely. Wellington Woollen ordinary, however, had buyers at fcp is. This indifference is noticeable towards other New Zealand industrials. The improved tone in the Australian market was re-echoed in New Zealand, and followed on better news from London as a result of the reception there of the British Budget, notwithstanding its increase in income tax. In Australia itself public attention will be diverted to the terms of the latest internal loan as approved by the Loan Council, the sum required to oe raised being £10,(300,000 of which £4 000,000 will be for defence. lne last loan for £8,000,000 was successfully floated in October 1937, at 3i per cent, and issued at £99 .ss. It was oversubscribed by £153,000. But Australia has also to arrange for conversion of local loans amounting to £71,917,000 (as at September 30 1937), and maturing December : .io next. The strain on the local money market, then, may-be fairly heavy bekeNewZ^and Government Stocks and Bonds continue in good demand, although sellers,were more inclined to meetthe market than they were: be-, iore Easter, and.. prices, if. anyj*ing, were a little easier on closing. quotations before the Easter holiday period. It "s interesting, to note^uotatMMjin New Zealand: for: Australian Common-, wealth Bonds. • with buyers ,ot 3 per. cent (1944) at £95 10s and sellers of. fper cent; (1941) at £10S1. Sales of 4, pc? cent. Commonwealth Bonds (1947) were reported at £10.2 lus. • GOVERNMENT LOANS. table following :— May 1, April 18, This Per ' • 4 T" 19£ 8< - *6 fc iN I« § ! ill in- ♦ Buyer. Half-yearly interest is due on 3J per cent Stocks* and Bonds (1952) and 3i per-cent. Stocks (1941) on May 15. : Half-yiarly interest was paid on the 4 Prf cent. (1946-49) debentures on Aprills last. Sales reported this week are as follows: — 3i: per cent Stock C1939-«>. *«» ,2s 6d; 33 per.cent. ■ &s*s!' Vj^. 34. per cent. Stock ,(1938-52), £103 , 7s\ 6d; 3i per cent. «*«*<»«• fQR 10s- 4 per cent. Stock (.law, £in& 2« 6d £102 £102 ss; ,4 per, Kclt'sS aW. : aiora. ea, £ 104 ■■'■■'■■ " ' ' ' . ' ■ " -5 per cent. Rural Advance' Bonds' .(IKer£S^^tralian:,CrmOn- • wealth Bonds-(1947), £102 10s. Local body debentures, were inclined to be cheaper as to city issues than they have been for some time past with more sellers than usual in the market. Auckland Harbour 41 per opnt (1948) had inquiry at £105 and the same authoFity's issue (1949) were wanted at £105 10s. Theje were sellers of: Auckland City (1944 and 1951) at £104- for either issue. Wellington Harbour1 Board- 54 per cent, had buyjers, at;£101 12s 6d, Sales reported were: 4-per cent. Dunedin City (1939), £100; 54 per cent. Wellington Harbour (1940), £101 17s 6d. . . Company debentures wanted' included 6 per cent. Amalgamated Brick, Wellington (1944) at £90,17s 6d. The Auckland issue of Amalgamated Brick was in demand at £91. Gfborne Sheepfarmers 6i per cent. (1941) had buyers at £100. There were sales of € per cent. Auckland Gas (1942) at ,£lO6 ss. . BANKS, INSURANCE, FINANCE. Bank shares showed a tendency to harden up on the week but Bank of New Zealand ordinary did not sell above 43s 10d, and later at 43s 9d, notwithstanding the announcement yesterday of approval of the final haltyearly dividend at the same rate as last year, namely, 10 per cent, per annum, payable in June. The Long Term Mortgage or D shares reached 30s, and on these the fixed, dividend is 1\ per cent per annum. National of New Zealand declined from 55s to 54s 4d. Union Banks moved up from sales at £8 19s od to business at £9 0s 6d, and receded to £8 19s 6d. -Bank of New South Wales also improved showing a rise of 2s. with sales at £31 19s, and were inquired for yesterday at £32 2s 6d. . National Bank Nof Australasia (£5 paid) shares had business at £7. Commercial Bank of Australia appreciated, the ordinary shares rising to sales at 16s sd, but the latest price was 16s 4d. Buyers of Bank of Australasia shares bid up to £9 18s, but lowest sellers' quotation for these sums at the end of the week was £10 2s 6d, and sales were made at £9 16s. Bank of Adelaide had inquiry at £6 but holders were not interested in this bid. Shares of the Commercial Banking Co. of Sydney were to be bought at £20 15s, but this price failed to attract bids. E.S. and A. Bank shares were wanted at £4 15s, sellers quoting £5.

Insurance company shares were on a quiet market early in the week and prices were if anything easier than they had been. Business was confined to shares in New Zealand companies, with later sales o£ New Zealand Insurance at 595, South British at 44s 4d, Standards at 57s 6d, and National at 17s 7d, a fall of 3d on the week. Business in the stock and station and financial section was very small this week. Dalgety's changed hands at £8 9s. Goldsbrough Morts were wanted at 29s 3d, but sellers stood out for 30s 3d. New Zealand Loan and Mercantile (ord.) were inquired for at £37 10s, and the lowest price fixed by sell-

ers was £39. There were sales of National Mortgage at 42s 3d. Wright Stephenson pref. were wanted at 2us

6d. " , Sales of financial companies snares reported included New Zealand Guarantee Corporation at 4s 6d, Wellington Investment T. and A. at 9s. AUSTRALIAN METAL SHARES. Broken Hill South showed a decline on the week from 31s to 30s 3d. Mount Lyells were also easier, closing at 27s 4d, a drop of 8d per share on the week. Electrolytic Zinc shared in the weakness of the Australian metals section and sellers at 42s showed a fall of 6d per share. North Broken Hill were steady with business at 49s 6d. I Broken Hill Proprietary closed steady lat around 60s 3d, declining from 61s sd. RETAIL STORES. Coles showed an appreciation on the week with a good turnover at 80s, the closing price at noon yesterday.. Sales had been made earlier at 79s 6d. WooJworths, Ltd., cum rights to take up shares in Woolworths Properties Ltd. — a new company formed for a special purpose—opened up at 22s Id and business was subsequently reported at 22s 4d. the rights selling at from 3s 6d, to 2s lOd and up to 3s 9d, yesterday. Woolworths (N.Zj were in moderate demand with sales at 21s 6d to 21s 2d. Sales of McKenzie's Department Stores were reported at 69s 6d. Shillings, Ltd., changed hands at 16s 9d. BREWERIES AND VARIOUS. j Very little interest-was displayed in J brewery shares. Carltons had sales at 65s 6d and later 65s 4sd. New Zea- j land Breweries stood at sales around j 44s 4d. Dominion Brewery sold if. 37s 6d. Dunedin Brewery cum div. had buyers at 30s 3d, but sellers wanted 40s. Tooths were in demand at 555, sellers quoting Is above that price. New Zealand industrial shares had but a small turnover. Westport-Stock-ton Coal (pref.) made "55.9 Jd and was the only company figuring in the sales for the week. Gas shares continued weak with Aucklands sold at 19s 6d to 19s 9d and Wellington at 36s 6d. Christchurch sold at 13s 6d for the 10s paidup issue. No business was reported in textile shares.

Freezing companies' shares were neglected. Those of the New Zealand Refrigerating Co., however, changed hands at 8s 3d for the, 10s paid and ■18s 6d for the. £1 shares. I P. and O- deferred returned to public favour on announcement of the dividend of 24 per cent, and business was reported at 26s 9d. Union Steam Ship (pref.) made 27s and Huddart Parker (ord.) 45s 6d.. . :. .■. ; ■ • '. Colonial Sugar advanced to business done at £48 and Australian Glass sold at 91s. ■..■■• Sales of New- Zealand industrials included Wilson's Cement 17s 3d, New Zealand Paper Mills 245. 9d, New Zealand Drug 67s 3d, New Zealand Newspapers 37s 4d. ■"■■■■■.■■■'■ I .There was;a spurt in Taranaki (N.Z.) Oil Fields shares, which rose from 6s. i lid to: 8s 3d, .but the market subsided] to sales at 7s 6d, recovering to 8s Id. Martha Mine shar.es sold at 15s ad, practically the only business done in New-Zealand gold shares., , ... .. i j