SHARE MARKETS

Evening Post, Volume CXXVI, Issue 26, 30 July 1938, Page 12

SHARE MARKETS

ACTIVE IN SECTIONS

jGOVERNMENT LOANS EASIER

"Evening Post," July 30

Dealings on the Stock Exchanges of the Dominion this week show that "in-f vestors' are ready and willing to do business, and in some sections the markets may be said to have been active; but this condition is not general. Con-1 fidence is still halting. There appears to be.a relatively large section of investors who prefer to wait and see, rather than take advantage of what seems to be attractive prices ruling for some shares when their values today and as they stood twelve months ago are compared. Business on the Stock" Exchanges of most countries is usually .slack before a.General Election, and in that respect New Zealand is no exception; but it is noteworthy that shares in some New Zealand companies have markedly declined ■on buyers' valuations, especially as in many instances dividends have been maintained at what they were in 1936 and last year. The table following these,remarks is submitted by 'way of illustration:— . Company. p.c. 1936. 1937*. 1935! EenownCoal 7 11/5 v/- •o/q Taupiri Coal _ W/% : \Y/. $/_ !Nat. Timber 3 12/- IIV- . *g/_ ILeyland-O'Brien .. 5 23/- U9/6 ?18/Auckland Gas .... 5% 25/8 21/6 20/Chch. Gas v 7 32/- 27/6 27/Welllngton; Gas. .. 8 36/- 40/6 t3o/9 N.Z. Refris 5% 9/3 8/10:- 8/3 Gear Meat 7 19/- 16/3 14/4 Wellington Wool . 6 120/- 125/- flO4/KaJapol 5 15/3 13/8 10/6 N.Z. Breweries .. 8% 51/3 49/6 43/----jN.Z. Drug 8 79/9 74/- 70/Mllbura Lime 8% 42/- 40/6 36/Wllgon's Cement .15 — 20/6 18/----•Buyer. fSeller. • GOVERNMENT/LOANS.. -' ■: The market for Government Stocks and Bonds this week shows sellers more willing than they have been of late to meet the market, and the trend of prices "is downwards. :^ The possibility, of some £14,250;000 in loans being raised within the Dominion-has somewhat depressed the market for Government. loans. 'It lias" been •., ob-' served-that the Governments-idea.of the market rate of interest' for internal loans is 3i per .cent., but it should be remembered that the conversion of a 4 per cent, loan (1940) -into two issues at '3\per cent. (1941) and 3| per cent. (1953-57) was not fully subscribed, and that both these loans are now purchasable at below par. The market for Government loans this week has been dull. Sales are set out hereunder. Appropriate prices at August 2 last year, with those -for last' week and this week, are as follows:— ~ Aug.,-. Last.. This „-. " 1937. week.. week. p.«, "■ ■ Tear. £ £ ■ £ ' 3 -" 15/7/41 *97% 96% 3% . 15/5/52 103 101% 101% 3% y 15/3/43 102% 100% 100% 3% 15/1/53-57 98% • 95% 95% 3% 15/11/41 101% -tlol%- floo% 4 15/2/46 104% 102% 102 .4 15/4/49 104% 102% 102 . 4 15/6/35 104% v 102% 102% •Buyers.. tSellers. . ■ - With the exception of the 3 per Cent.' (1941) and 3£ per cent (1953-57), all the loans are redeemable by the Government on or after a date, which is three years prior to the maturity date, on giving three months' notice in the New Zealand Gazette. The effective rate of the 3$ per cent. (1952 and 1943) is now 4 per cent, by the operations of the interest tax imposed under the provisions of the Finance Act of 1932-33. Half-yearly interest is due on 4 per cent. Stock and Bonds (1946) on August 15 next. Sales this week were reported as follows: — 3£ per cent. Stock (1939-43), £100 ss, £100 3s 9d. £100 2s 6d; 3£ per cent. Stock (1938-52). £101, £101 2s 6d; 3£ per cent. Stock (1953-57), £95 7s 6d. 4 per cent. (1946), £102 2s 6d, £102 ss, £102, and Bonds, £101 17s 6d; 4 per cent. (1949), £102 Is 3d, £102; 4 per cent. (1955),-£lO2 ss, £101 15s, £102 2s 6d. . Australian Commonwealth 4 per cent. Bonds (1951-59) changed hands* this •week at £103 10s. Business in local body loans was rather larger than usual, the following sales being reported:—4£ per cent. Wellington City (1944), £104,. (1943), £102; 4} per cent. Waitaki Power (1953), £105 17s 6d; 4J per cent. Auckland Harbour (1940), £100 ss; 4J per cent. Mt. Eden Borough (1953-58), £104; 4£ per cent*Christchurch Drainage (1960),. £106; 4} per cent. Mt. Albert Borough . (1861), £103 10s; 4£ per cent. Whangarei Borough (1942), £ 102. Company debentures, for which there were inquiries, included 7£ per cent. Dominion Fertiliser (1941), £102; 6 per cent. Amalgamated Brick (1944), Auckland, £97, and Wellington, £96; 6J per cent. Gisborne' Sheepfarmers. (1941), £101/ ..; v^ : ■;-•■ ;:■:;•. '. ■" BANKS,' INSURANCE,.' FINANCE.. . Although • in' ordinary ; times bank shares are: less favoured- for. their return .on current";prices -than for their strong appeal Jtp. careful investors, business^! them continues slow, and for. the present they, seem to be under a cloud here and in Australian Hpwever, «iherer -appears to be a strong disposi-. tion to seirthein at current rates, and they keep remarkably steady. Amcing those for which "thet-e were inquiries were for Bank of Adelaide at £5 15s; National of Australasia (£5), at £6 13s and (£10) at £13 12s. Business reported in New Zealand to noon yesterday in bank shares at present levels, or •where vafiations are shown, is as ioilow;s:— High. liow. • Close. » Bank. ■■ £ c. d. '£ s. d. £ s.,d. SW Zealand .. 2-33.230 230 ar lx: z:.: lit o IS o IS | Xralasla .. 10 2 6 10 2 6 10 2 6 N. South Wales 31 2 6 31 0 0 31 0 0 Camm. of Aust. 016 8 016 5 016 s C°Sf- AUSt' 9 8 9 9 8 9 9 8 9 CoS '^ Sydney 20 4.6 20. 4 6 20 4 6 E.g. and A. .. 54 3 o4 0 5 4 0 Sales of Bank of New Zealand Longterm D shares were made at 29s bd. Insurance were steady, with an upward move in prices, New Zealand .InsScSvandni! froni^sales last week at 56s 6d to 57s 3d and South British rising from 45s 6d to 46s 6d. Nationals had inquiry at 16s 9d, sellers asking 17s 7d Standards were quoted by sellers at;s6s 9d to 575, but no business \Tas repastb?al.' shares were ._qigpt, wi* some weakness shown in Goldsbrougn Morts, prices for these shares this week receding from 28s lOd to 28s sd. Dalgetys had inquiry at £7 19s to fc», and sellers at £8 Is 6d, at which price there were sales. Loan and r rcanISle were in demand at £32. Wright, Stephenson (ord.) were wanted at 21s, but there were no sellers. Farmers Auctioneering (£5 paid) realised 90s. The financial section- was neglected. New Zealand Guarantee Corporation shares had sales at 4s sd, and this was all the business reported. ; BASE METAt SHARES. Turnover in Australian metal shares was of small dimensions, and the market showed no pronounced changes over the: week, except a tendency, for prices to weaken. Highest prices reached last week and closing prices at

noon ryfesterday indicate the state of the market today:—

■ : s July 22. This WeeK. i Highest. High. Low. . Close. Broken Will S. 33/3 34/2 32/3 32/7 N. Brcfcdn Hill 49/- 50/- 4S/6 50/-Elec.'Ziic-(ord.) 44/- 44/10 43/9 44/3 Mount i.yell .. 29/- 29/9 28/4 28/7 Mouqt! Morgans closed at around 10s 9d, rising from 10s 8d to 10s lid, and slipping back to 10s 9d.

I 1 RETAIL STORES. . Storef! shares were well held, but G. JY. Colesf were inclined to weaken. They reached; TDUsiness at 83s 6d, but sold later atfs!2s. Woolwq>rths Ltd. were steady at between" ,21s 9d and 225. Woolworths (N.Z.) sold at 20s 8d as against 21s last week. \Vydolworths Ltd. (second pref.), cum divj.' .of 7 per cent, per annum, changed ?h&nds at 27s Bd. Woolworths, Properties had business at 14s. Woolworths Holdings advanced from sales at 15^6d;tb 15s 10£ d. < McKenzit^'s Department- Stores sold at 655, tEev same price as made last week. ' Farmers'! Trading, Auckland, changed hands at 2Ps. Other stbre shares dealt in included Anthony giordern ' (Sydney) at 17s 3d and David (Sydney) at 37s 9d, an advance of 6d on the price paid last week. Be«3.th and Co. (Christchurch) commanded 19s. INDUSTRIAL AND OTHER. New Zealand industrial shares were m poor demand. Business done in coal mine shares? ;jfacluded Westports at 24s 9d, Taupiri sat 15s. and Westport-Stock-ton (ord.), kf 3s lid to 4s 2d on an improved mjarket. Gas shares sold were Auckland at 20s and Christchurch at 27s 3d, latejr reducetl to 275. Wellington Gas preference were in demand at 235. •■•,;, Woollens a&dt textiles generally were neglected. Kaaapoi (contributing) had business at 3s 5d to 3s 6d, the same as last week* ■ Bond's Hosiery shares had.unsatisfied buyers at 15s 3d. : In the meatjishare market there were sales of Geafts* last week at 15s, but they have drbpped to 14s 4d. New Zealand Refrigerating (10s paid) sold at 8s 4d andiSouth Otago at £5 7s. Buyers of Canterbury Freezing offered £9 2s 6d, with) sellers,quoting. £9 145.: Southlands weqre in demand and sold at 30s'. i ' : '• .■-■••. Inquiries for\ timber shares included. Rotoitiv buyers^'.3s, .and Taupo Totara wanted at ss. «, * ■ Other New 7k aland industries figuring in the sale? were Milburn: Lime and Cement at 3<ta.and Wilson's Cement at 18s. Consoli dated Brick ,sol& at 7s. 3d.',.., ■-. .• •"■.:■■■ »■■■:•• i.;--- ■■ '.. ' .. . . Dominion Fertilisers had', a sale at 25s and Kempthc me Prossers New Zealand Drug sold ,at 70s. ■ In the miscellaneous section . sales were notified of Bycroft, Ltd., at 41s, and Northern Rojller -Mills (pref.) at 21s 6d. BREWE&Y SHARES. Notwithstanding increases shown in consumption of mfclt liquors, interest in brewery shares jwas. far from keen. New Zealand : Bre^eries were firm at between 43s and ;43s 6d. Dominion; Breweries had reported sales at 35s 3d. Westland Breweries ' (unlisted) sold at 355. ' - Australian breweiry shares dealt, in included Carltons a£> 65s and Tooths at from. 54s 6d, risingj to 555. > AUSTRALIAN SHARES. An advance frori 95s to 95s 9d was, made dri the • price spaid for Australian{ •Glass.-, ■ " .. . ; \ • -■•' .-■"■• ■ ' - Broken' Hill, Proprietary" were weaker, starting at uls 5d and finishing at sales 60s 3d. The. contributing shares in this company solid at from 36s 9d to 375, dropped to 36s| and closed,at 36s &d. , . . '. • Burns Philps sold, at 53s 2d and British Tobaccos were jsteady at 48s 9d. Colonial Sugar maintained £48 10s, a rise on the week o| £2 6s 3d. DunlopPerdriaus- were steady at 22s 2d; JVlorts Dock rose td 13s. OIL AND) GOLD. The demand for (Taranaki Oilfields' was at between 13s isid and 13s 10d, but they declined to f}.3s 7d yesterday. Moturoa Oils impraj/ed from 5s 2d to 5s 6d. I ' Business done in i gold-mining and dredging shares thiSffweek was next to nothing, with sales wf Waihi Investments at up to 10s, Alluvials at ss, and Grey| River at 14s.