MARKETS REVIVE

Evening Post, Volume CXXV, Issue 148, 25 June 1938, Page 12

MARKETS REVIVE

MEDALS TAKE A RISE

BANK SHARES WEAK

''Evening Post,'' June 25,

Sallowing quickly on a; recovery < market confidence in London and Wa Street, .the volume : and value of bus mess increased' in Sydney and Me sbourne, especially in shares in Austr: lian mining companies and those. ( some industrial/' undertakings.; Th 'week; 'began with,, share markei generally .urider a cloud, but thei came a brief, sharp ray of sunshin .ironvthe London metal exchange. Th improvement'afforded a welcom change from the conditions that hav .prevailed in the Australia and Zealand investment markets for som time-past. It did not, however, exten to shares in banks doing their princ: pal business in, Australia. Heferenc was made in ah address in Sydney, b; Sir Alfred Davidson, general manage of the. Bank of New South Wales, t> proposed Federal legislation which tin bankers themselves and, obviously, tb share markets, are of opinion will no be to the advantage of investors ii bank sharas. It was shown in tabula: form in this column last week tha there has been a general fall in thi value of Australian bank shares durin; the past twelve months; and on reported business and the inquiry foi such shares during this week, thei: position has not improved. Little oi no improvement can be expected unti the bugbear to which Sir Alfrec Davidson referred is removed and the banks know just-where they, stand oi will stand in their relationship to depositors, customers, and shareholders His suggestion that advances might have to be reduced was no doubt made with careful thought given to it beforehand. ; The returns of the banks trading in New Zealand Jor the month ended May 30 show that already there has been some reduction in advances in the Dominion. At the end of March they amounted to £55,837,400; at the end of April to £56,256,000; at the end of May to' £55,307,300. Deposits were also lower in May than in March by nearly £1,000,000, but they continue at around £12,000,000 in excess of advances, so that the position may be described as "comfortable." Although external influences have been responsible in large part for the present brighter aspect of the investment markets of Australia and New Zealand, they will not in themselves be sufficient to restore a high degree of confidence all the time uncertainty exists as to the course of domestic affairs. Speculation may be given, an impetus by sharp movements in prices of certain shares, but something more is required to put the markets in such a position as to give full assurance to holders and prospective purchasers of "safe" investments. GOVERNMENT LOANS. Sellers of Government Stocks and Bonds today appear to be readier to do business than they were in the beginning of the year, when they were rather slow to quote. Prices paid for these investments, however, show but little;if any" decline: from rates.ruling early ' in :r January.;■* For instance, , 3|: percent..-(1938-52) then changed'handsat £-1013 arid this week business was reported at £1014, interest being payi: able-May cand November; the.4 per,: cent.';t*B46)VStock sold: at £103 l-8 fc ia: January, and had business at £102 5-8 this week, interest being payable in February and August; and the 4 per cent. (1949) sold at £103 1-8, but this week sales at £102£ were reported, interest being payable in April and October. The interest on 3i per" cent. Stock is free of income tax until the interest date next following or coinciding with the .maturity date of the pre-conversion security. Approximate prices a year ago for Stocks and at the present time are shown as follows: —

Half-yearly interest was paid on the 4 per cent. Stock and Bonds (1955) on June 15; and is due'on the 3 per cent. Stock and Bonds (1941). and Zi per cent. Stock and Bonds (1953-57) on July 15. Sales reported this week are as follows:—. ■* 3J per cent. Stock (1939-43), £100 2s 6d, £100 ss; 3J per cent. Stock (1953-57), £97 ss; 3i per cent. Stock (1938-52), £101 ss; 3J per cent. Stock (1941-43), £100 ss; 4 per cent. Stock (1946), £102 10s, £102 15s, £102 10s, £102 12s 6d; 4 per cent. Stock (1949), £102 10s, and Bonds, £102 10s; 4 per cent. Stock (1955), v£lo2, £102 2s 6d, £102, and Bonds £102 10s. ' 5 per, cent. Rural Advances Bonds (1947), £102 15s. The. effective rate on these bonds is -now .4 'Per cent. under provisions of the-,;Finance Act, 1932-33. ' f,i f '. ; ;U^::.-' :Debentures of local authorities reported sold this week included;4J Auckland Harbour Board (1948),; £105 15s, and (1957) £106 10s; 4£ Auckland City (1944-67),. £103 10s. A.sale of 5 1-8 per cent. Bank of New Zealand debentures (1/8/1939) was reported at £102.

BANkS, INSURANCE, FINANCE.

The turnover in, bank shares was small excepting for Bank of New Zealands, which nad a number of re-ported-sales at between 43s 3d and 43s 6d._/ National Bank of New Zealand maintained their recovery with busii. ness done at 555, cum div. English, Scottish, and Australian Bank shares had buyers at from 95s to 96s 3d, and sales reported at 975. National Bank of Australasia (£lO fully paid) were inquired for at up to £13 2s 6d, but igellers didliot;quote below £13 17s. The £ 5 "shares'in' this' bank had buyers at £6 M sellers-£6 12s 6d. Some business was done in Bank of New South Wales at £31 10s, and later at £31 7s 6d, with £31 5s paid for shares on the Sydney register. Sellers of Bank of Australasia shares quoted from £10 to £9 15s and sold at £9 14s; late seller £9 15s 6d. Union Banks were reported sold at £8 5s 9d. Business in Commercial of ' Australia shares was done at up to 16s, but later 15s 8d was the price paid. The 4 per cent, preference issue of this bank commanded £9 4s to £9 4s 3d.

Insurance shares continued on a quiet market, and very little business was reported. Nationals had sales at 17s sd; New, .'.Zealand Insurance changed .hands at from 57s 3d down to 56s 6d; South British, reported sales were at £46 9s. Standards were quoted by sellers at 58s, but there were no buyers, and holders of Queenslands were prepared to take 53s 6d. Bankers and Traders' Insurance sold at 31s IOJd.

Stock s and station companies shares were slow to move. Dalgety's had sales at £7 17s 6d; Goldsbrough, Mort's dropped from 26s 10id to 26s 6d; and sales of National Mortgage (A) were reported at 435; Newton King (pref.) were wanted Stf 8s 6d. The only business reported in local finance companies' shares was New Zealand Guarantee Corporation, at 4s

6d. Other finance companies attracting were Equitable Building,: wanted at 13s, arid New Zealand River Plate, at 13s. METAL SHARE PRICES. There were sharp movements in prices of Australian metal shares during the week in sympathy with the better tone of the metal markets. Broken Hill South opened the week at 245, and dropped to 23s 9d, then rose , to 28s 8d:•;?■■:' f North Broken vHill began at 35s 3d, [1 reaching 40s 6d, but easing down to 39s [. 6d. , Mount Lyells climbed from 22s 4d to l " 255, then fell to 24s 2d, and recovered i- to 25s 6d. .■'.-,'■" f Mount Morgans took a turn for the ,; better, rising from sales at " 8s 4d to 9s:9d, and 13s 4d was paid s for the preference issue. These shares 2 were-in- strong demand yesterday, 1 RETAIL STORE SHARES. I . The market for chain and other store » shares was without incident. G. J. i Coles, however, rose from 80s 3d. to . 82s, arid subsequently receded to Sis L 4d. ... /.-■ - Woolworths, Ltd., were steady at be- . tween 20s 3d and 20s 6d. The business. in Woolworths Hold- ■ ings was small at around 15s 6d. > Anthony Hordern shares sold at 16s .; lQd. :•' ■ • ■ ' ,:■ ! ' Auckland Farmers'-Trading Company ; Were firm with; sales at 21^.,-. industrial .and Others. Brewery.''shares : ' received a fair amount of attention. New Zealand Breweries were traded in at 40s 9d to 41s 3d. For Dominion Breweries 36s to 36s 3d Was paid. Tooths had good inquiry at 33s 6d. Coal and gas shares were both on a slack market. Sales, however, were re- i ported of Westport Coals at 24s 9d and of Westpprt-Stocktons-at 3s -sd, rising ' to 3s Bd, with up to .7s paid for ,the preference issue. I In the gas section Aucklands sold at j between 20s 3d and 20s 6d, and business was done in Christchurch at 27s | 6d. Wellington (ordinary) were quoted < at 36s 3d. - k Woollen and other textile shares - were very quiet, and quotations of £5 i to £5 5s for Wellington ordinary shares attracted no business. Sellers of < Bruce (pref.)' quoted 21s and Manawatu k Knitting at 33s 9d, but there were no y buyers. • . The frozen meat share market was j also quiet, and Gears were quoted ex n div. at 15s 9d, but failed to attract atten- j tion. Sales of New Zealand Refrigerating £1 and 10s were notified at 18s 6d t and 8s 4d respectively. Business was 1 done in Southland Meat at 29s 9d. Buyers of Canterbury (£7 10s paid) 1 offered £9, but there were no sellers, I and the (£5 paid) preference issue of I this company was in demand at £6 3s. I

Timber shares' dealt in were represented by a sale of Kauris at 21s 3d.

In the miscellaneous section New Zealand industrial shares sold included, Wilson's Cement at 16s 4d, down to 16s 2d. New Zealand Paper Mills brought 20s 6d. New Zealand Farmers' Fertilisers had business rising from 18s 6d to 19s and Kempthorne Prossers New Zealand Drug sold at 67s 9d. Dental and Medical shares' changed harid.s at 14s. '.-.'• AUSTRALIAN INDUSTRIES. There was a good-turnover in Broken Hill Proprietary shares, which showed appreciation; from-;56s early in the week, when: they had relapsed from 57s 7jd, urttil"business was done at 595, the market'again falling back to 58s and recovering to 58s 6d. /'<'■"■ '■'■ Australian: .Glass (ex dividend) rose ■from 90s;,3d'id;91s 6d;- '.' : British Tobacco held at 46s 3d. Burns, Philp changed hands at 50s 6d and later at 3d less. , Colonial Sugar declined; Sales were made up to £47 7s 6d, but the market dropped to £46 7s 6(1 Dunlop-Perdriaus were weak at 19s sd, but improved to 19s lid. A rise from sales at 5s 5d to 6s 6d was made in Wilcox, Mofflins. OIL SHARES. Sharp fluctuations marked the business in Taranaki (New Zealand) Oilfields shares, beginning with sales at 14s 3d and easing down to lis 9d, then reaching 15s, and again dropping back to 13s 6d, with a closing sale at 14s Bd. Moturoa preference realised 6s and the ordinary shares recovered from 5s 8d to 6s.

GOLD SHARES. Business in gold dredging and-mining shares was negligible.

GENERALLY STEADY AUSTRALIAN SHARE MARKETS (By Telegraph—Press Assn.—Copyright.) SYDNEY, June 24. The Sydney Stock Exchange today was without material change and generally steady. Barrier stocks were in good demand at improving prices. Taranaki Oil rose to 14s 4d. Reports of extensive beneficial rain in all parts of the country , stimulated pastorals. Sales included:— • £ s. d. Bank of New South- Wales . 31 7 6 Commercial'BankVof Sydney 20 12 0 Bank of Australasia ;...,.. 915 0 United Insurance .......... 917 0 Mercantile Mutual Insurance 110 0 Huddart Parker 2 5 6 British Tobacco.- 2 7 3 Tooth and Co.;. 2 14 9 Australian Glass :..;; 411 3 Dunlop-Perdriau ...... 1 010 W. Adams ; 0 15 9 Warburton Franki 1 0 0 Woolworths, Ltd. .<........ 10 6 Woolworths, rights 0 .3 3 R. Fowler ...: 011 3 Winchcombe Carson 1 7,0 Henry Jones Co-op 2 7 6 Electrolytic Zinc 1 14 6 ElectrolytjcVZinc, pref 2 5 6 Mount Morgan 0 9 10 Mount Ly/ell .....,:. 16 6 Placer Development 3 18 6 Taranaki Oil* 0 14 4

"MELBOURNE, June 24. On the Stock Exchange of Melbourne today, with further '.rises overseas, leading industrials and Barriers developed a strong tone, but other stocks were not showing much change. Sales included: — £ s. d. Comm. Bank of Australia 0 15 11 National Bank of Ausl, £5 611 0 National Bank of Aust., £10 13 6 0 Adelaide Steamship 114 0 Drug Hoiises 1 5 0 Aust. Iron, and Steel, pref. 17 6 Australian Glass 4 11 6 Dunlop-Perdriau; :..■•. 110 Australian" Paper Mfrs., pref. 14 3 Cox Bros:' ....;...... 015 3 Yarra Falls 1 18 0 Electrolytic' Zinc ; 1 19 3 ElectrolyticrZimvpref. 2 4 6 Mount Morgan 0 9 11 Mount Lyelt 1 6 3 Broken Hill Proprietary .. 2 19 9 North Broken Hill 2 3 6 Broken Hill South 1 11 0 Zinc Corporation. 4 2 0 Emperor Gold 0 12 5 Loloma Mines 12 4 GOLD DREDGING RETURNS. The following is the official return of gold won by' White's electric dredge during the week,ended June 23: 240z of gold treated in 100 hours. Mossy Creek return is 38oz ldwt for 7326 yards and 133 hours. The following is the official return of gold won by the New River gold , dredge during the week ended June 23: 16oz of gold from 9000 yards treated in 110 hours' dredging time., JAVA EXCHANGE. (By Telegraph—Press Assn.—Copyright.) ' (Received June 25, 10 a..m) , BATAVIA, June 24. Sterling exchange, 8.93J guilders to < £1. • , The rate -on June 23 was the same. J

June, Last JThis p.c Tear. - . 1937. week. week. S 15/7/41 '98 98 — 3% 15/5/52 101 - - 101% 101W 3% 15/3/43 103% 99% 100»i 3% 15/1/53-57 99% 98 97<Vi 3% 15/11/41 10094 *9B\t, — 4 15/2/46 103% 103 102% 4 ••" 15/4/49. 104 10314 102M, 4 ' ': ... 15/6/55 : 104%. 104 102 ■-.... 'Buyer. ,