TRADE AND FINANCE

Evening Post, Volume CXXV, Issue 130, 4 June 1938, Page 12

TRADE AND FINANCE

PRODUCE li MARKET REPORTS FROM DAV TO DAY

BUSINESS ON 'CHANGE

A SLOW WEEK

GILT-EDGED IN DEMAND

"Evening Post," June 4.

The New Zealand investment market continues dull in sympathy with that of Australia, although as- the week closes the outlook is a little, brighter than it has been, of late. Business on the Dominion Exchanges has been very slow, but more interest is being'shown in the shares of well-established and well-managed Australian and New Zealand companies. News from overseas continues to exert an unsettling effect on the markets, and even periods of quiescence do little, if anything, to ■Hay uneaisiness in the mind of the investor. He seems at the moment to be "going slow," but ready to move quick# when the slightest sign of improvement is seen - in. the markets here and in Australia. • The Commonwealth £ 10,250,000 in-, ternal loan is now before the investing public. According to the latest official information available in New Zealand, it is being as well received as present circumstances warrant, fairly large contributions being made by insurance companies and the general public. But it must < necessarily. absorb large amount of money in the aggregate that in the ordinary way would have sought investment in the best class of shares. In Australia, too, the banks, while placing no restrictions on what they deem to be legitimate requirements, are reported to be scrutinising more closely than formerly advances sought for purposes which, in their judgment, can wait. As the "Insurance and Banking Record" points out, While the deposits of ten banks have increased _by £14,080,895, the advances have risen by £16,761,823, leaving a net adverse movement of £2,680,928 against banking resources. ,' ■ , , It- is' understood that the banks trading in New Zealand are also giving extra attention to existing limits, advances, and applications for. new ones, or for further extensions—at any rate until the balance of exports over imports is larger than it was at March 31 last. , Australian bank shares continue on a •weak market, and the reason for this does not appear to lie in the return or the volume of profits. The explanation for the present low level of Australian' bank shares may be found in the fear of political interference. Sir Howard Lloyd, chairman of the Bank of Adelaide, in addressing that bank's shareholders at their recent annual meeting, expressed his regret that politics . were playing too large a part in the discussions on the trading banks of Australia and the Commonwealth Bank. He said, too, that "there is a real danger that the efficiency of the system may be sacrificed to political expediency. The Federal Government must decide ■whether to follow the example of England, where voluntary co-operation between the Bank of England and the trading banks has maintained London as the financial centre of the world, or to support the introduction of the compulsion and, rigidity of the United States and some other countries with their unsatisfactory results. It is to be sincerely hoped that common sense will prevail, and that a survey of the proved English system will convince the Government that it is advisable to allow the Australian system to develop along the same sound lines, rather than to adopt a policy based upon political expediency and academics." j How the investing -.public regard Australian bank shares as investment today and, how they valued them a year ago may be seen in the mate market prices in Australia tabulated as follows:— SYDNEY EXCHANGE. 1 ' • End , May 31, of May, 1937. 1838. £ s. d. £ 8. d. Bank of Australasia .. 12 17 6 918 0 Sink of Adelaide 618 0 6 0 0 Commercial ,( ord.) .... ®-W-3 0.15 9 Commercial of Sydney .. 21 16 0 20 12 0 E.g.- and A. 6 9 0 416 0 Naflon»l( £ 10) 15 ,51 0. 13 11 0 National (£5) ....... 7 8 6 6 9 0 nJwXuth Wi1e5;...... 36<1* 0 32 0 0 Queensland Nat. . ...... 514 0 5 7.0 Union Bank 11 T 0 811 0

In New Zealand the demand for Government Stofiks and Bonds continues good, with buyers outaumbenng sellers, and small appreciations in prices paid for them. There is, too, a steady market for city and harbour board loans,, although reported business in these investments this week has been small. GOVERNMENT LOANS.

Government Stocks and Bonds show but fractional variations on last weeks prices, and are still in demand. Prices a year ago and during this week are shown in the table following:— May. : Last This 1937. week. week, trr Year. £ ; '"S £ 3 ..... 1941 *97 V 2 *88 *9T% 3% :: . 1943 101% ; 100% 100% 3% 1952 102% 102% 102% 314 ..... 1957 99 itlOOtt 99 3% ..... 1941 101% : *99% tloo% 4*'. ......' 1946 103 : 103% 103% 4" ..... 1949 103 i 103% 103% 4 ' 1955 104% . 104% 104% ■. "Buyer. tSeller. • Half-yearly interest is due on the 4 Jer cent; Stock and Bonds (1955) on urie 15, and on the 3 per cent. Stock and Bonds (1941) and 3i per cent. Slock-and Bonds (1953-57) on July 15. Sties- reported this week are as follows:—. isf'per cent. Stock (193943), £100 ss, £100 6s; 3i per cent. Stock (1938-52), £102,- £102 2s 6d: 3i pep cent. Stock (1953-57), £99, and Bonds; £98 17s 6d; 4#per cent. / Stock (1946),; £103 2s 6d, £103; £103 -2s 6d; £ 103 :ss, and Bonds, f 103 2s 6d; 4 per cent. Stock (1949), 103 ss; 4 per cent. Stock,* (1955), £104 7s 6d, £104 10s. , , „.} ■ 41 per cent. Taradale Borough (1944), £.103. 'BANKS," INSURANCE, FINANCE. . :

.has .been, iinade above to. the bank share section of the market and the reported sales, this week will show its trend. There -Were inquiries for . Commercial Bank' of Sydney at £19 17s 6d, but sellers stood out for £20 ss. National of Australasia (£10) were in demand, at £13 7s 6d, but the lowest pricei put on them by sellers -was £13 ss, and up to £13 15s was quoted. Bank of New Zealand ordinary shares (cum div.) were in active demand at from 44s 6d to 44s 9d, and liter were dealt in at 44s Bd. ' Bank of Australasia had but little business at £9 15s, and to noon yesterday the only reported sales of Union Banks were at £8 Is. E.S. and A. Bank had business at 97s to 97s 6d. National Bank of New Zealand sold at around 52s 3d. Insurance shares made but little appeal to investors. Sellers of Standards quoted 58s, but no business was reported. Nationals changed hands at 17s Bd, and New Zealand Insurance sold at 58s ■ Id. South British were down in market estimation, for sales were made last week at up to 48s, but the price reported yesterday was 475. and station company shares necessary reflected the present easy condition of the wool market. Dalgetys were in demand at £8. but sellers wanted £8 5s to £8 7s. Goldsbrough Morts were easier, the announcement of the reduced dividend

[from 8 to 7 per cent, affecting values, which dropped from 31s last week to 29s 4Jd yesterday. Wright, Stephenson's preference shares had inquiry at 20s Bd, with sellers quoting 21s 6d. Newton King (ord.) were wanted at lOd. Financial companies' shares were neglected, but there were buyers of New Zealand and River Plates at lis 3d, but no declared sellers. Sales of Dominion Investment and Banking Company, Auckland, were reported at 18s 6d. The New Zealand Investment and Mortgage Company, Wellington, was represented in the sales at 9s 7d. METAL SHARES. The market for Australian metal shares was weak, but improved a shade towards the close. Variations in prices made for Broken Hill mining shares were from 27s to 27s 8d for Broken Hill South, and from 40s 6d down to 39s 3d for North Broken Hill, the closing quotations for which shares were buyers 39s and 42s sellers. Electrolytic Zinc (ord.) declined from 375. 9d to 36s 3d, but recovered to-36s lid. The preference issue at 41s showed a , loss of 9d on the week. ' Mount liyells were dealt in at 22s 3d to 23s 3d, and dropped to 22s 6d, recovering to 22s lOd. « Mount Morgan improved from sales at 8s 4d to 8s 9d. ■ Latest reports of the London metals market showed slight rises all round. RETAIL STORES. Turnover in the retail store share section was comparatively .small. Woolworths Ltd. dropped fromi 21s 4d to 20s 7d, and recovered to 20s 9d, with a good demand for rights at from 3s 8d to 3s lOd, but a sale in between at 4s. G. J. Coles improved from 80s 6d to 81s 9d, but showed some weakness at the close, with sales,at 81s 4£d. There were reported sales of Selfridges (Australasia) at 18s and Selfridge's (N.Z.) at 9s 3d. INDUSTRIAL AND OTHER. r Coal shares attracted a moderate amount of attention with business in Westports reported to 245, Stockton (ord.) at up to 3s, and Renowns at 10s and preference at 2s 6d. Gas shares were dull, the only business reported being Auckland at 20s 7d, and the contributing issue of this company at 14s 4d.

Shipping shares dealt in included sales of Union Steam Ship (pref.) at 26s 6d, and Huddart Parker (ord.) at 45s 6d.

Frozen meat shares were neglected, but there, were sales of New Zealand Refrigerating at 8s 3d to 8s sd, and Southlands at 29s 2d, with inquiry for Canterbury (pref.) at £6, and sellers of the ordinary shares of this company quoting £9 to £9 ss, but with no response from buyers. . Woollens also made an indifferent appeal, but Wellington ordinary changed nands at .£5 ss, and Bruce ordinary at ss. Kaiapoi (17s paid) had inquiry at 10s, "Timber shares were very quiet, but there were sales of Kauris at 21s, and Nationals at 188,. with inquiries for Leyland O'Briens at 16s 9d and -sales of Taringamutu at 12s 6d. Considerable business was done in New. Zealand Breweries, but at declining prices, opening sales being at 435, and business done at 41s lid, and later at 42s Id. Other brewery business was Swans, ex div., at 27s od, Tooths at 545, and Tooheys at 30s 9d. In Australian industries sales of the shares of Broken - Hill Proprietary varied between 59s 3d and 60s, and a good turnover was reported up to noon yesterday, when the high - - level was attained. Australian Glass were steady at 92s 3d. British Tobacco weakened from 47s 8d to 47s 6d. Colonial Sugar also declined to sales at £47. There were sales of General Industries at 18s 2d, and Dunlop-Perdnau at New Zealand Industries were represented by sales of New Zealand Drug at 67s 9d; Farmers' Fertiliser at 18s 9d, Northern Roller Mills, at 19s 6d, Wilson's Cement at 16s lid, and N.Z. paper Mills 21s. Taranaki Oils rose from 8s 2d to 9s. ' Sales Were made of Martha Mine at lis 9d and Waihi Grand Junction at 2s lid. Talisman Dubbo-rose from 8s Id to 8s 3d. *

GOVERNMENT LOANS

MOVEMENTS IN PRICES (By Telegraph—Press Assn.— Copyright.) LONPON, June 2. Last week. This -week. Consols, 2% p.c 74% Funding Loan, 4 p.c, y 1960-90 113% War Loans, 3% p.c.'. .. 101% 102 C °pT rSion .. Loan .'... 101% 102% i Victory Bonds, 4 p.c. . 11l 111% ' ComVealth Australia, 5 p.c., 1945-75 107% *105% Com'wealth Australia, 4 p.c., 1943-48 ....... 102 102 Com'wealth Australia, , ■ 3% p.c., 1949-53 .... 98% 98% ComVealth Australia, 3 p.c., 1956-61 90% 91 ««• .«* N s"'-m Victoria, 4 p.c., 1*920-40 97% *93% Victoria, 4% p.c., 1940Victoria,' 5 p.c., 1957-76 107% *105% Queensland, 3 p.c., 1922Q u^ e n ß Yand; 5 p:c.,.1940S o r A^er 3 . P :?:'.. lel6 76% *75%' S 7S AUS^.^ P ' C ::. I94S ' 107% *105% \ A *±t v :°:. 18i3r .MI*:.. *100% Tasmania, 3% p.c., . . 1940-50 102 nOO 9-16 Tasmania. 4 p.e., 1940N.Z., 4% ' p.c., 1948-58 99% 100% N.Z., 3 p.c., 1945 .... 98% 98% • N.Z., 3 p.c., 1940 .... 92% 93A *Ex interest. PRICE OF GOLD (By Telegraph—Press Assn.—Copyright.) (Received.June- 4, 10 a.m.) LONDON, June 3. .The price of fine gold per ounce, 140s 9d.

s. d. June 2 HO 8 June 1 HO -7| May 31 140 5| May 26 140 94 May 2 J39 6* Kh'i § fi February 1 139 J January 3 139 5 Highest price in 1937, March 6, 142s 7Jd; average price in 1930, 85s per oz. DOLLAR RATES. The Associated Banks (other than the Bank of New South Wales) quoted the following dollar rates today, on a New Zealand currency basis. They are subject to alteration without notice. U.S.A. Canadian. Dollars. Dollars. , (Per £1 (Per £ 1 N.Z.) N.Z.) Selling— T.T. 3.96J 4.015-16 O.D. 3.97 1-8 4.0111-16 Buying— O.D 4.01 4.051 JAVA EXCHANGE. (By Telegraph—Press Assn. —Copyright.) ' (Received June 4, 10 a.m.) BATAVIA, June 3. Sterling exchange, 8.95 guilders to £1. The rate on June 2 was the same.