BUSINESS IN SHARES

Evening Post, Volume CXXVI, Issue 8, 9 July 1938, Page 12

BUSINESS IN SHARES

INTEREST IN BANKS

MOVEMENTS \U METALS

"Evening Post," July 9,

There appears to be no lack of en-! terprise on the part of investors to revise and—in their judgment-^to im- ! prove their portfolios, going by the active conditions of the Australian and New Zealand markets during the week. These conditions, no doubt, have been influenced by the spurts in. the Wall Street markei and perhaps by the popular,; belief that "once America begins to buy again" ihetals, rubber, and other articles for industries, then the prices of shares, industrial and some others, will. advance immediately—if hot before. Mew Zealand > stock and share markets generally, however, have worn a brighter aspect during the past week or so than they did in March and. April. While it would-be too much to say that .confidence on the part of investors is fully restored, yet for the time being a better feeling is displayed today than a month or six weeks ago. Local causes for uneasiness of mind, however, have not disappeared in either New Zealand or Australia, and they exert their own particular influences over the domestic markets. National economic problems of Australia and New Zealand will call for solution, and the methods to be adopted usually take the form of increased direct and indirect taxation, and the making still more permanent that which was passed to meet emergencies. Money in the form of bank deposits and going by inquiries made by potential investors appears to be plentiful, but at the same time advances have substantially increased and accommodation may not be so easy to obtain as it was during the latter half of 1937. It is a psychological fact, irrespective of what party may be in power, that the.: sensitiveness of the investment markets is more acute during sittings of Parliament than when the common lawmakers are in recess. That sensitiveness is not absent from the Australian—especially for bank shares—rand New Zealand markets. It emphasises the need for care and caution in the revision of shareholdings. Taking a conservative view of the future, and that is what «nariy investors are doing, preference is still shown for gilt-edged investments in accordance with the usual tendency for these to / be in favour when industrial and other shares are slow to move. ' loans. New Zealand Government Stocks and Bonds hold their own and the business, transacted -this week shows little, if any, variation on the prices reported last week. . Approximate prices at July 1 last year) with those for last week and this week, are as follows:— July, Last This 1337. week. week, p.c ■ Year. £ £ £ 3 15/7/41 08 5)714 *97% 3% 35/5/52 102% 101% . 101% 3% 15/3/43 102' A 100% 100% S.V2 15/1/53-57 lOOV4 9714 «Ql% 3% IJ/11/41 100% *9!)% — 4 15/2/4G 104% 102% 102% 4 15/4/49 104 1021/ a 102% 4 10/0/55 105% 102% 102% ♦Buyers". Half-yearly interest was paid on the 4 per cent. Stock and Bonds (1955) on July 15; and is due on the 3 per cent. Stock and Bonds (1941) and 34 per cent. Stock and B,qnds (1953-57) on July-15; and on 4 per cent. Stock and Bonds (194-6) on August 15. Sales reported this week are as follows:— 3£per cent. (1939-43); £100 7s-6d, £1005s; 3£ per cent; (1953-57), £97 10s, £97 7s 6d, and Bonds, £97 7s 6d: 34 per cent. (1938-52), £101 2s 6d: 4 per cent. Stock (1946), £102 10s, £102 12s 6d, and Bonds, £102 10s; 4 per cent. (1949), £102.i105, £102 12s 6d, £102 10s, and Bonds, £103; 4 per cent. (1955), £102 ss. Local body' debentures were on a quiet market with inquiries for 4J per cent. Christchurch (1940-49) at £102 2s 6d and for 4J per cent. Auckland Harbour Board (1940 or 1959) at £102 and £105 respectively; and 4J per- cent. City of Auckland (1944) at £101 ss. Sales were reported as follows:— ■ • 4$ per cent. Auckland Harbour (1959), £106; 4£ per cent. Mount Albert Borough (1963), £103 10s and (1967) £103 10s; 4i per cent. Mount Roskill (1963), £104 10s. Company debentures in demand included 6£ per cent. Gisborne Sheepfarmers (1941) at £100 10s to £101, an 4 6 per cent. Amalgamated Brick at £97 and £96 for the Auckland and Wellington issues respectively. , The business in company debentures as reported this week was as follows:— 4J per cent. New Zealand Farmers' Co-op. (1950), £92 10s; (1949), £93 15s; fogs!), £91 15s; and (1955), £93 15s. ■ --BANKS, INSURANCE, FINANCE. __A notable feature in the bank share market this-.week-has been the recovery in? Bank- of Australasia shares, and there was a slight advance in: the market valuation of Union Bank shares. 2sank-' of Australasia rose from £9 14s t$ £9 17s, with sales closing at £9 165.. tlhion" Banks advanced from. business done at £8 7s to £8 13s 6d. . Bank . of New Zealand scares varied between 42s lOd and 435, with closing sales r at the latter price. MqUir^es were'made lor; National Bank of New Zealand cum div. at. 545, but no business was reported at'that figure. Commercial Banking Company of Sydney sold in Sydney during the week at £20 10s lowest and* £20 12s 'highest, and were quoted by sellers in New Zealand at £20 10s to £20 lls. Commercial Bank of Australia announces a dividend on ordinary shares at the rate of 1& per cent, per annum, compared with 6 2-3 per cent, last year.' Business was done in New Zealand this week at 15s lOd to 16s. and there -were buyers yesterday af»l6s; ,The 4 per cent, preference shares ot this bank sold at from £9 7s to £9 7s 6d, National Bank of Australasia (£5 paid) had v sales at £6 13s this week, whereas buyers last week priced them at £6 8s and sellers at £6 12s. English, Scottish, and Australian Bank shares were dealt in at £0 12s. Sales of Bank of New South Wales were reported at £31 10s, an odd' parcel. , . , -, Insurance shares keep, about level with last week's prices. New Zealand Insurance with a tendency to advance. South British were a shade easier, receding from 46s 6d to 465. Nationals kept at 17s 6d. Sales of Queenslands ex div. at 50s were reported. Standards reported business at 56s Id. There were buyers of Australian Provincials (unlisted) at 95,. but no Stock and station shares were sparse]v dealt in. Business was reported; in Dalgetys at £8 3s. Goldsbrough Morts weakened to sales at 28s M, the lowest price reported last week being 28s 8d and the highest 29s 4d. Wright Stephenson had buyers at 21s, and prefs. sold at 205,6 d, Buyers of New Zealand Xian and Mercantile offered £30, sellers asking £38. National Mortgage A. ex div., sold at 435,, Buyers °f Newton King (pref.) offered 8s 9d, but sellers wanted 10s. The financial share market was slack, with very few' sales, among them being New Zealand Guarantee Corporation at 4s 4d; New Zealand Investment and Mortgage, Wellington, at 9s 6d, and' United Building, Christchurch, at 20s 6d. Equitable Buildings were in

demand at 13s 4d, but there were no declared sellers. | METAL SHARES ACTIVE. j Interest in Australian base metal shares was; as keen as last week, and prices generally ruled higher all round. This. improvement followed the firmer markets for copper and lead and tin. The highest spot prices of principal metals during the montlt of June, 1938 (Stock Exchange average), and those for June 30 and July 7 will indicate the trend of the market on latest mdi- j cations, and they are as follows: — June, 1938. June 30. July 7. & s. d. £ s. d. £ s. (1. Copper .. 37 16 10% 37 18 9 39 15 0 Lead .... 15 1 10V 2 13 1 3 15 9 4% ! Spelter, ... 14 110% 14 2 6 14 8 1% Tin ...... 187 15 0 189 7 0 IU4 0 0 j Advances were shown during the week in the prices paid for Broken Hill South, wnich had a -brisk turn- • over, rising from 32s 3d to 34s 3d, easing off to 33s and subsequently advancing to 345, and finally at 33s 9d. j North Broken Hill opened the week at 47s 3d, and touched 52s 3d, but j came back to sales at 48s. Mount Lyell lifted from 28s and sold at 30s, closing at noon yesterday at 29s 6d. Electrolytic Zinc (ord.) sold at 42s 6d in the beginning of the week and appreciated to business at 445, slipping back to 435. The preference issue of this company varied between 46s and 47s 3d, and also cheapened as the weeK closed, to sales at 46s 7d. Zinc Corporation had business at 90s. Mount Morgan (cum div.), advanced from 9s 7d to 10s sd, closing at 10s 9d. Rawarig Tin rose sharply from 8s 6d last week to 9s 9d. , DEPARTMENT STORES. Three well-known •Australian department stores figured in the sales of shares this week, business being reported in Myers' Emporium, Melbourne, pref., at 36s 9d, and ord. at 30s 3d. Farmer and Co., Sydney, was represented with sales of first preference at' 25s 7|d. Anthony Hordern, Sydney, sold at 17s. Of.-J. Coles shares had a fairly large turnover, rising from 83s and closing at 84s, and 36s 4£d paid for the preference issue. Woolworths' Ltd., Sydney, made an advance from 20s 6d to 22s 6d, rising steadily throughout the week; and 27s 10|d paid for second preference. Woolworths Properties had business at 13s 9d, the shares being paid up to 10s. Woolworths, New Zealand, closed firm at noon yesterday with sales at 20s 9d. " Woolworths Holdings were up to 15s 8d and closed at 15s 6d. McKenzie's Department Stores improved by 2s a share on the week, with business reported at 635. BREWERIES AND OTHERS. A little more attention than has been usual of late was shown in the brewery share market, including shares in some of the well-known Australian companies. The latest prices realised this week were:—New Zealand Breweries, 435; Dunedin, 255; and Dominion, 365. Carltons sold to 65s 9d, and shares in the two Sydney breweries, Tooths and Tooheys, also changed hands, the former rising from 54s 3d to 54s 8d and the latter realising to 31s lid. INDUSTRIAL AND VARIOUS. Coal and gas shares claimed some attention, with sales of Westport Coal at 24s 6d and Westport-Stockton. ord. at 3s 7d, and the prefs. at 6s 6d. Gas share business included Auckland (paid) at 20s and (15s paid) 14s. Christchurch sales wefee at 27s 3d and Wellington"■■■ Cord.) at 355. Shipping share business was quiet but there were buyers of P. and O. deferred at 25s 9d#to 26s 9d, and no selling. New Zealand Shipping (pref.) wanted at £11, sellers asking £13 h° a Snds H atd2 dßf ?d Park6r (praf° Changed The meat share market was very slack, attention being confined to New Zealand Refrigerating (10s paid), i ss&jg-fts? to 8s 5d and w r,J?7 ew + Zealand textile shares' were' neglected, and sellers quoted freely. However, sales of Wellington Woollen I (ord.) were notified at £5 2s 6d, and Bruce (ord.) changed hands at 7s 6d Bonds Hosiery were wanted.at 15s. Sales of New Zealand industrial and other shares for the week included Claude Neon (N.Z.), at 25s 6d; Northern Roller Mills at 19s 6d, National Electric at 13s 6d, N.Z. Drug, Kempthorne Prossers at 69s 9d, N.Z. Paper Mills^at 21s 9d, N.Z. Newspapers at 35s and N.Z. Farmers' Fertiliser at 19s 6d.! Wilsons Cement had business at prices ranging from 16s 6d to 16s 9d. AUSTRALIAN INDUSTRIES. A relatively large amount of business in Australian industrial and other shares passed during the week. Australian Glass, which sold up to 90s last week, reached 92s 9d, and the de-1 mand for them remains strong. Attention was paid to Australian Pulp and Paper with sales at 34s 3d to 34s 6d and Australian Paper Manufacturers had business at 24s 4£d, rising to 24s 6d. British Tobacco (ord.) advanced from 47s to 47s 6d, with a good turnover, and 31s 3d was paid for the preference issue. Colonial. Sugar improved- from £46 10s to £46 lls 3d. Dunlop-Perdriau Rubber were on a slow market, with sales made up to 20s 9d. Other Australian industries represented in the sales were Wilcox Mofflin at 6s 6d, Hume Pipe, at 19s Id, and Mort's Dock at 10s 6d. ODL AND GOLD. Taranaki (N.Z.) hold at around 14s, and Moturoa at between 5s 6d and 5s 9d. New Zealand gold dredging and mining business was very small, with sales of Marthas at lls 7d and Waihi Investments at 9s Id, showing advances of 7d and 5d per share respectively. Other gold; mine shares sold included Cock's Eldorado at 18s 10£ d and Wellington Alluvials at from 5s Bd, rising to 5s 9d; Austral-New Zealand Mining at 22s 6d.